L-R: Ishmael Nwokocha, Group Head, Mobility Business, Access Bank Plc; Chizoba Iheme, Group Head, Product and Segment, Access Bank Plc; Eniola Olutimilehin, Chief Operating Officer, CIG Motors; Gaurav Vashisht, Hyundai Manager, Stallion Motors; Gaurav Kaul, General Manager, Kewalram Motors; Iyabo Soji-Okusanya, Executive Director, Corporate and Investment Banking, Access Bank Plc; Giselle Bejjani, Media and Marketing Manager, Mikano Motors; Oluyinka Osoba, Sales Manager, CFAO Motors; and Olumide Olatunji, Head, Retail Banking Division, Access Bank Plc, during the launch of AutoFest, held recently at Access Bank’s Head Office, Lagos.
By Johnson Emmanuel
Access Bank Plc has launched a digital vehicle financing initiative in Lagos that allows individuals, small businesses and corporate organisations to purchase new and certified pre-owned vehicles with a minimum 10 percent equity contribution, while the bank finances up to 90 percent of the vehicle’s value over repayment periods exceeding four years. The programme integrates manufacturers and dealers including CIG Motors, Mikano Motors, Kewalram Motors, Stallion Motors, Elizade JAC and CFAO into a single financing platform.
Executive Director, Corporate and Investment Banking Division, Iyabo Soji-Okusanya, said the initiative addresses financing barriers that have constrained vehicle ownership. “You apply online, and you go home with the keys to your car already in your pocket.”
Group Head, Access Bank Mobility, Ishmael Nwokocha, said the bank spent six months engaging stakeholders before rollout, adding: “Come with 10 percent equity contribution, and we’ll finance the 90 percent.”
DECISION HIGHLIGHT
Access Bank is shifting vehicle finance from a conventional collateral-based lending model to an integrated mobility financing platform that combines credit, dealerships, insurance and after-sales services. The decision lowers upfront acquisition costs while broadening financing access across consumer and commercial vehicle segments.
DECISION MEMO
The initiative reflects a strategic attempt to stimulate demand in a vehicle market constrained more by affordability than supply. By reducing initial capital requirements, Access Bank is positioning credit as the primary mechanism for expanding vehicle ownership rather than relying on price reductions by manufacturers.
The platform also addresses inefficiencies across the automotive value chain. Dealers gain faster inventory turnover and improved liquidity, while borrowers receive a streamlined purchasing process supported by digital loan processing and ancillary services. Loan restructuring provisions further indicate a preference for preserving performing assets instead of accelerating repossessions during borrower distress.
For the bank, the programme diversifies retail and commercial lending into an asset-backed segment while extending financial inclusion to transport operators and ride-hailing businesses that have traditionally remained outside formal credit markets.
DATA BOX
| Indicator | Details |
| Customer equity | Minimum 10% |
| Bank financing | Up to 90% of vehicle value |
| Maximum tenor | More than four years |
| Vehicle market size | About 100,000 units annually |
| Brand-new vehicles | Approximately 10% of annual sales |
| Pre-owned vehicles | Approximately 90% of annual sales |
| Coverage | Individuals, SMEs, corporates, schools, hospitals, fleet operators |
| Additional services | Insurance, after-sales support, digital application, loan restructuring |
WHO WINS / WHO LOSES
Winners
- Consumers facing affordability constraints.
- Vehicle dealers through improved inventory turnover.
- Businesses requiring fleet expansion with reduced upfront capital.
- Access Bank through growth in secured lending and customer acquisition.
Potential Losers
- Cash-dependent dealerships operating outside integrated financing platforms.
- Informal vehicle financing channels that may lose market relevance.
- Borrowers exposed to repayment risk if income weakens despite restructuring options.
 POLICY SIGNALS
The programme aligns with broader efforts to deepen consumer credit, formalise mobility financing and improve financial inclusion. It also reinforces growing private sector participation in addressing transport financing gaps without direct fiscal intervention.
INVESTOR SIGNAL
The initiative suggests Access Bank is expanding fee-generating and secured lending businesses beyond traditional banking. If credit quality remains stable, higher vehicle finance penetration could strengthen loan growth while stimulating activity across automotive distribution, insurance and maintenance services.
RISK RADAR
Key risks include rising vehicle prices driven by exchange rate volatility, higher credit default rates under weaker economic conditions, depreciation of financed assets, and execution risks associated with integrating multiple dealers and service providers into a unified digital financing ecosystem.
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