For most Nigerians, the maths of buying a car stopped working somewhere around 2023. Naira prices for both new and tokunbo vehicles climbed with the exchange rate, salaries did not follow, and the old plan — save in cash for two or three years, then buy outright — started to feel like chasing a moving target. That is the gap vehicle financing is now trying to fill, and 2026 has been the busiest year yet for car loans in Nigeria.
Access Bank has launched a scheme that funds up to 90% of a vehicle’s price, leaving you to find just 10%. Nord Automobiles is offering single-digit interest through its own finance arm. The Federal Government, through CrediCorp, has a 9% consumer credit fund aimed at locally assembled vehicles. On paper these look like the cheapest car money has been in years. This guide explains what each one actually offers, runs the real repayment numbers, and points out where the costs hide.
Why car loans suddenly matter in Nigeria
The background is simple: cars got expensive faster than incomes grew. Clearing a tokunbo saloon now involves customs duty, levies and agent fees that can rival the purchase price abroad, and locally assembled new cars are priced against imported components bought in dollars. Paying cash means either liquidating savings or postponing the purchase indefinitely.
The second factor is the cost of borrowing. The Central Bank of Nigeria retained the Monetary Policy Rate at 26.5% at its July 2026 meeting, and analysts widely expect it to hold through the rest of the year. Commercial lending sits above that benchmark, which is exactly why a single-digit auto loan is such an unusual offer — it is priced well below what the market would normally charge.
The three main car financing routes in 2026
1. Bank auto loans — Access Bank AutoFest
Access Bank’s AutoFest programme is the highest-profile bank offering of the year. The headline terms, as announced by the bank:
- Up to 90% financing on the vehicle price, with a minimum 10% equity contribution from the buyer
- Covers both new and certified pre-owned vehicles — not only brand-new stock
- Repayment tenures extending beyond four years
- A fully digital application with credit decisions within 72 hours
- Bundled comprehensive insurance and after-sales service packages
- Open to individuals and to corporates, schools and hospitals needing fleets
The scheme runs in partnership with established distributors including CFAO, CIG Motors, Elizade, Kewalram Chanrai Group, Mikano Motors and Stallion, which means the vehicle range is broad but you are buying through a partner dealer rather than from any seller you like. The bank has also said it plans to onboard transport and ride-hailing operators who currently sit outside formal banking.
What the announcements do not publish is a fixed interest rate. Bank auto loans in Nigeria are typically priced off the bank’s own lending rate and adjusted to your risk profile, so the rate you are quoted will depend on your income, employment type and banking history. Ask for it in writing before you sign anything.
2. Manufacturer financing — Nord Finance
Nord Automobiles launched Nord Finance in May 2026, offering vehicle loans from 9% interest with tenures of up to 48 months, delivered through Nord Finance Limited in partnership with a commercial bank. The financing covers Nord’s 11 passenger and commercial models plus four electric models under its Tavet brand.
The catch is the obvious one: manufacturer financing only buys that manufacturer’s cars. If a Nord model suits you, a single-digit rate is a genuinely good deal in this market. If it does not, the rate is irrelevant. Nord’s own pricing has been reported at around ₦32 million for the C3, but Nigerian vehicle pricing moves with FX and stock availability — treat any figure you read online as indicative and get a current quote from the dealer.
3. Government-backed credit — CrediCorp and NADDC
The Nigerian Consumer Credit Corporation (CrediCorp), working with the National Automotive Design and Development Council, launched a ₦20 billion consumer credit fund for locally assembled vehicles, with loans pegged at a single-digit 9% interest rate. The scheme sits under the wider S.C.A.L.E. initiative, which targets one million beneficiaries across mobility, energy, devices and home improvement by the end of 2026.
Two things to understand about this route. First, it is restricted to locally assembled vehicles — the point of the fund is to support Nigerian assembly, not to subsidise imports. Second, the first phase rolled out with locally assembled tricycles and motorcycles through Simba (TVS), with cars in later phases. If you are a commercial rider, this is worth asking about now; if you want a saloon, check what is currently open before building plans around it.
What the repayments actually look like
Rates in adverts are abstract. Here is what they mean in monthly cash. The figures below are straightforward amortisation calculations on a ₦20 million vehicle with a 10% deposit, leaving ₦18 million financed. They are illustrations to show the shape of the cost, not quotes — your bank’s fees and rate will change them.
- ₦18m at 28% over 48 months: roughly ₦627,000 a month — about ₦12.1 million in total interest
- ₦18m at 24% over 48 months: roughly ₦587,000 a month — about ₦10.2 million in interest
- ₦18m at 9% over 48 months: roughly ₦448,000 a month — about ₦3.5 million in interest
The gap between a commercial rate and a single-digit rate on the same car, over the same four years, is close to ₦8.6 million. That is not a rounding difference. It is the price of a second-hand car, and it is the single biggest reason to chase a subsidised or manufacturer-backed scheme before defaulting to a standard bank loan.
Tenure cuts both ways
Stretching the loan lowers the monthly payment and raises the total. On the same ₦18 million at 28%:
- 24 months: about ₦988,000 monthly, roughly ₦5.7 million total interest
- 48 months: about ₦627,000 monthly, roughly ₦12.1 million total interest
- 60 months: about ₦560,000 monthly, roughly ₦15.6 million total interest
Going from four years to five saves about ₦67,000 a month and costs about ₦3.5 million extra overall. Take the longest tenure only if you need the monthly headroom, not because it looks cheaper.
The costs the advert does not mention
A 10% deposit is not the same as 10% of the money you need on day one. Budget for these as well:
- Comprehensive insurance. Lenders require it for the life of the loan — third-party cover will not be accepted, because the bank is protecting its asset, not just your liability.
- Management, processing and documentation fees charged upfront by the lender.
- Registration, plates and papers. These are yours to pay and are not usually rolled into the financed amount.
- Running costs. Fuel at current pump prices, servicing, tyres and the occasional Lagos pothole repair all continue while the loan runs.
- Variable-rate risk. If your loan is not fixed, a rate move changes your monthly payment. Ask explicitly whether the rate is fixed or floating.
How to choose
A practical order of priority for most buyers in 2026:
- If you want a locally assembled vehicle, check the CrediCorp/NADDC scheme first. Single-digit government-backed credit is the cheapest money available.
- If a specific manufacturer’s model suits you, compare its in-house financing — Nord’s 9% is far below commercial rates.
- If you want choice of vehicle, including certified pre-owned, a bank programme like AutoFest gives you the widest range and the smallest deposit, but confirm the rate you personally are offered.
- Whatever you pick, ask for the total repayment figure in Naira, not just the monthly instalment. Monthly payments make expensive loans look affordable.
Key takeaways
- 10% down is now realistic. Access Bank’s AutoFest funds up to 90% of new and certified pre-owned vehicles, with decisions in 72 hours.
- Single-digit rates exist but are conditional. Nord Finance (from 9%, up to 48 months) ties you to Nord models; CrediCorp’s 9% fund ties you to locally assembled vehicles.
- Rate matters more than deposit. On ₦18 million over four years, the difference between 9% and 28% is roughly ₦8.6 million.
- Shorter tenure, lower total. Five years instead of four adds around ₦3.5 million on the same loan.
- Borrowing costs are high across the board. The CBN held the MPR at 26.5% in July 2026 and is expected to hold through the year, so commercial auto loans will stay expensive.
Vehicle prices, import duties, interest rates and specifications change frequently in Nigeria — always confirm current figures with the dealer, the lender or the official source before buying.
Scheme details in this article are drawn from public announcements by Access Bank, Nord Automobiles, CrediCorp and the NADDC, and from Central Bank of Nigeria monetary policy communiqués. Repayment figures are our own amortisation calculations for illustration.
