Buying a car in Nigeria rarely happens in one cash payment anymore. With new-car prices high and tokunbo costs swinging with the dollar, more buyers are asking one question: what does a car loan in Nigeria really cost? This guide pulls together the bank terms and lender offers reported in 2026 and shows, with simple arithmetic, what a monthly repayment can look like.
Why car loans are back in the conversation
Vehicle financing in Nigeria has historically been expensive. As far back as 2019, the head of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, said commercial bank vehicle loans carried rates of roughly 20% to 28%, and the council proposed a scheme of soft loans at no more than 6% for Nigerian-made vehicles, with a 10% deposit. Years later, rates in the market are still high, but lenders are competing more openly on deposit size, tenor and extras.
In April 2026, Nord Automobiles launched Nord Finance in Lagos, a subsidiary offering single-digit financing, with loans from as low as 9%, on brand-new cars for individuals and businesses. According to the Nairametrics report on the launch, the vehicle title is held in Nord Finance’s name, which lets the company recover the car on default. The report did not state tenor, deposit or eligibility, so confirm those directly.
What Nigerian banks are offering
An August 2026 comparison published by Aboki Forex summarised several bank car-loan products. The figures below are as reported there; terms change, so treat them as a starting point only.
- Access Bank: minimum 10% equity (financing up to 90%), tenor up to 48 months, 22% per annum, with a 72-hour processing target via QuickBucks.
- First Bank: 30% of invoice value as equity, loans up to ₦75 million, tenor up to 48 months; salary account must be with the bank.
- Stanbic IBTC: 10% of asset value, up to 60 months for cars, covering new and pre-owned vehicles.
- Wema Bank: standard loans up to ₦50 million at 36% per annum; an “Easy Buy” option with CIG Motors needs 10% equity, runs up to 48 months and offers a 15% discount on the car’s market cost.
- UBA: up to ₦75 million for pre-owned vehicles, with an employer letter and salary account.
- Zenith Bank: 3 to 5 years for new cars, repayment capped at 33.3% of turnover or income, with perks such as free registration and servicing for the first three cycles.
- FCMB: up to 60 months through its Elizade JAC Autoland partnership, with insurance premium included in repayments.
Typical requirements
Across these lenders the same conditions keep appearing:
- Your salary paid into an account with the lending bank (salary domiciliation).
- Total monthly debt repayments, including the new car loan, not above about 33.3% of net monthly income.
- A letter of awareness or introduction from your employer.
- A pro-forma invoice from an approved partner dealer, such as Elizade, CFAO, Mikano or CIG Motors.
What does it cost in Naira? A worked example
The numbers below are our own illustrative calculations, not a bank quote. Assume a car priced at ₦20 million, a 10% deposit (₦2 million), so ₦18 million financed over 48 months with equal monthly repayments and no extra fees or insurance.
- At 9% per annum: roughly ₦448,000 per month; total repaid about ₦21.5 million, so about ₦3.5 million in interest.
- At 22% per annum: roughly ₦567,000 per month; total repaid about ₦27.2 million, so about ₦9.2 million in interest.
- At 36% per annum: roughly ₦712,000 per month; total repaid about ₦34.2 million, so about ₦16.2 million in interest.
The gap between 22% and 36% on the same car is around ₦145,000 every month. That is why the rate matters more than almost any dealer discount. And remember the 33.3% rule: at 22%, a ₦567,000 repayment implies a net monthly income of about ₦1.7 million to qualify under that cap.
Car loan vs tokunbo cash purchase
If you are weighing a loan against saving cash for a tokunbo, compare total cost, not just the monthly figure. A tokunbo car may be cheaper upfront, but clearing costs, repairs and spare parts can add up, which we covered in our guides on import costs and running costs. A financed new car usually comes with a warranty and, in some schemes, free servicing, which lowers surprise bills in the early years.
Practical tips before you sign
- Compare equity, rate and tenor together. As the Aboki Forex comparison itself notes, the cheapest monthly payment is not always the cheapest loan overall.
- Ask about all fees: management fee, insurance, tracker and early-repayment penalties.
- Budget for comprehensive car insurance in Nigeria. Lenders normally require it, and some bundle it into repayments.
- Check the title arrangement. Understand who holds the vehicle documents until the loan is cleared.
- Keep a fuel and maintenance buffer. Your repayment is only part of the monthly cost of owning a car.
- Negotiate on the car price before the loan, since discounts like Wema’s Easy Buy offer can reduce the amount financed.
Honest drawbacks
Double-digit interest means you pay a large premium for borrowing. A default can cost you both the car and your deposit. Salary domiciliation ties you to one bank, and a job change can complicate repayments. Single-digit offers are attractive, but read what happens if you pay late, because penalties can erase the saving.
Key takeaways and FAQ
Key takeaway: on a ₦18 million, 48-month loan, the difference between a 9% and a 22% rate is roughly ₦5.7 million in extra interest. Shop lenders, not just cars.
What deposit do I need for a car loan in Nigeria? Reported deposits range from 10% (Access, Stanbic, Wema Easy Buy) to 30% (First Bank).
How long can I repay? Reported tenors run from 36 months up to 60 months depending on the bank and whether the car is new or pre-owned.
Can I finance a used car? Some lenders, including Stanbic IBTC and UBA, are reported to cover pre-owned vehicles.
Is a 9% car loan real? Nord Finance announced single-digit financing from 9% on new cars in April 2026; confirm eligibility, tenor and fees with the company.
Disclaimer: vehicle prices, loan rates, import duties and specs change frequently in Nigeria. Always confirm current figures with the dealer, bank or official source before buying. Repayment figures above are illustrative estimates only.
