OJO OLOTU
Nord Automobiles has introduced a single-digit vehicle financing scheme, offering loans from as low as nine per cent, in a move aimed at boosting access to brand-new cars and reducing reliance on imported used vehicles.
The company unveiled the initiative, tagged Nord Finance, in Lagos on Tuesday, saying it would provide individuals and businesses with flexible options to acquire new vehicles through structured repayment plans.
Chairman and Chief Executive Officer of the company, Oluwatobi Ajayi, said the programme was designed to address long-standing dependence on used vehicles, popularly known as Tokunbo.
“Our goal is to make more Nigerians drive brand-new vehicles,” Ajayi said. He noted that while used vehicles have improved access to mobility, concerns persist over their long-term reliability, safety standards and cost of ownership.
According to him, the financing scheme offers interest rates starting from nine per cent, with repayment tenures of up to 48 months, enabling buyers to spread the cost of vehicle acquisition over time.
“This means that instead of paying large sums upfront, buyers can make smaller monthly payments and still own a brand-new vehicle,” he said, adding that the arrangement would reduce the burden associated with frequent repairs common with used cars.
Ajayi said the scheme is being implemented through Nord Finance Limited, a subsidiary of the company, in partnership with a commercial bank.
He added that customers can access financing for all 11 passenger and commercial models produced by the company, as well as four models under its electric vehicle brand, Tavet.
Nigeria’s automobile market is estimated at about 500,000 vehicles annually, with only a fraction representing new vehicle purchases, while the majority are imported used units.
Ajayi said the company aims to convert part of the used-car segment into demand for locally assembled vehicles.
“Nigeria is a very big market of over 200 million people, with demand for about 500,000 vehicles yearly. Unfortunately, only around 14,000 to 20,000 of those are brand-new vehicles,” he said.
“We believe that even a modest shift from the used-car segment into the new-car market will be significant.”
He added that the company’s vehicles are designed to suit local conditions, including road infrastructure, climate and fuel quality, unlike many imported vehicles originally built for other markets.
Ajayi said the company has the capacity to meet rising demand, noting that its vehicles are assembled in Epe and at the University of Lagos.
Founded in 2018, Nord Automobiles focuses on the design, assembly and distribution of locally made passenger, commercial and electric vehicles.
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