Access Bank moves to ease vehicle ownership

Access Bank Plc has introduced "AutoFest," a significant vehicle financing initiative designed to enhance car ownership accessibility for Nigerians amidst escalating vehicle prices and challenging economic conditions.

The program allows customers to finance up to 90% of the cost for both new and certified pre-owned vehicles, requiring only a 10% minimum equity contribution. AutoFest also offers flexible repayment periods extending beyond four years and features a streamlined digital application process for speed and convenience.

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You apply online, and you go home with the keys to your car already in your pocket.

Iyabo Soji-Okusanya, Executive Director of the Corporate and Investment Banking Division at Access Bank, emphasized the initiative's goal to remove financial obstacles that have historically limited vehicle acquisition in Nigeria. "You apply online, and you go home with the keys to your car already in your pocket," she stated, underscoring the efficiency of the digital platform.

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The programme is designed to address financing constraints that have limited vehicle ownership in the country.

AutoFest integrates key automotive players, including CIG Motors, Mikano Motors, Kewalram Motors, Stallion Motors, Elizade JAC, and CFAO, into a unified ecosystem. Ishmael Nwokocha, Group Head of Access Bank Mobility, explained that the bank spent six months collaborating with these stakeholders to develop a program tailored to current market realities, acknowledging that soaring prices have severely impacted affordability.

Nwokocha noted that Nigeria's annual vehicle sales are around 100,000 units, with only about 10% being new vehicles, highlighting the affordability challenge. The financing facility is available not only to individual buyers but also to corporate organizations, schools, and hospitals needing vehicle fleets. Plans are also in motion to include operators in the transport and ride-hailing sectors who currently lack formal banking access.

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Come with 10 per cent equity contribution, and we’ll finance the 90 per cent.

Addressing concerns about default risks in a volatile economy, Chizoba Iheme, Group Head of Product and Segment at Access Bank, assured that the bank has implemented safety nets for borrowers facing temporary financial difficulties. Loans can be restructured, and early liquidation is permitted without penalty. Industry stakeholders, such as Eniola Olutimilehin, Managing Director of CIG Motors, have welcomed the intervention, recognizing its role in bridging a critical gap in the market.

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Nigeria records annual vehicle sales of about 100,000 units, with only about 10 per cent being brand-new vehicles. Rising vehicle prices have significantly reduced affordability for many Nigerians.