Buying a car in Nigeria is rarely a cash payment. With new car prices high and the Tokunbo priced against the dollar, more buyers are asking a question: What does a car loan in Nigeria really cost? This guide combines bank terms and lender offers reported in 2026 and shows, with simple arithmetic, what monthly repayments might look like.
Why back to the car loan conversation?
Vehicle financing in Nigeria has historically been expensive. As of 2019, the head of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, said commercial bank vehicle loan rates are about 20% to 28%, and the council has proposed a soft loan scheme of not more than 6% with a 10% deposit for Nigerian-made vehicles. Years later, rates are still high in the market, but lenders are competing more openly on deposit sizes, tenors and extras.
In April 2026, Nord Automobiles launched Nord Finance in Lagos, a subsidiary offering single-digit financing, with loans as low as 9% for brand new cars for individuals and businesses. According to a Nairametrics report on the launch, the vehicle’s title has been placed in the name of Nord Finance, which allows the company to recover the vehicle in default. The report does not mention tenure, deposit or eligibility, so confirm them directly.
What are Nigerian Banks offering?
An August 2026 comparison published by Aboki Forex summarizes the car-loan products of several banks. Below statistics are reported there; Terms change, so consider them only as a starting point.
- Access the bank: Minimum 10% equity (up to 90% financing), term up to 48 months, 22% per annum, with 72-hour processing target through QuickBucks.
- First Bank: 30% of invoice value as equity, loan up to ₦75 million, tenure up to 48 months; Salary account must be in bank.
- Stanbic IBTC: 10% of asset value, up to 60 months for vehicles, 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 requires 10% equity, lasts up to 48 months and offers a 15% discount on the market cost of the vehicle.
- UBA: Up to ₦75 million for pre-owned vehicles with employer’s letter and salary account.
- Zenith Bank: Loan repayment capped at 33.3% of turnover or income with benefits like 3 to 5 years for new cars, free registration and servicing for the first three cycles.
- FCMB: Up to 60 months through its Elizade JAC Autoland partnership, inclusive of insurance premium payments.
General requirements
Similar terms appear across these lenders:
- Your salary is paid into an account with the lending bank (salary mastery).
- Total monthly loan payments, including new car loans, should not exceed approximately 33.3% of net monthly income.
- A letter of awareness or introduction from your employer.
- Run a pro-forma at an authorized partner dealer like Elizade, CFAO, Mikano or CIG Motors.
What is its price in Naira? A working example
Below are the numbers Our own illustrative calculationsNot a bank quote. Assume a car costs ₦20 million, a 10% deposit (₦2 million), so ₦18 million financed over 48 months with equal monthly repayments and no additional fees or insurance.
- At 9% per annum: Roughly ₦448,000 per month; Total repaid is about ₦21.5 million, hence interest of about ₦3.5 million.
- At 22% per annum: Roughly ₦567,000 per month; Total repaid is about ₦27.2 million, hence interest of about ₦9.2 million.
- At 36% per annum: Roughly ₦712,000 per month; Total repaid is about ₦34.2 million, hence interest of about ₦16.2 million.
The gap between 22% and 36% on the same car is about ₦145,000 per month. This is why the rate is more important than almost any dealer discount. And remember the 33.3% rule: at 22%, a ₦567,000 repayment means a net monthly income of about ₦1.7 million to qualify under this cap.
Car loan vs Tokunbo cash purchase
If you’re weighing a loan versus saving cash for a tokunbo, compare the total cost, not just the monthly amount. A Tokunbo car can be cheaper upfront, but can add clearing costs, repairs and spare parts, which we’ve covered in our guide to import costs and running costs. A financed new car usually comes with a warranty and some schemes offer free servicing, which reduces the initially staggering bill.
Practical tips before you sign
- Compare equity, rate and tenor together. As Aboki Forex Comparison itself notes, the cheapest monthly payment isn’t always the cheapest loan overall.
- Ask about all fees: Management fee, insurance, tracker and early payment penalty.
- Budget for comprehensive car insurance in Nigeria. Lenders usually require it and some bundle it with repayment.
- Check the title format. Know who holds the vehicle documents until the loan is cleared.
- Keep a fuel and maintenance buffer. Your payment is only a fraction of the monthly cost of owning a car.
- Negotiate the price of the car Prior to the loan, as discounts such as Weimar Easy Buy offers can reduce the amount of financing.
honest imperfection
Double digit interest means you pay a big premium for borrowing. A default can cost both your car and your deposit. Salary dominance ties you to a bank and job changes can complicate loan repayments. Single-digit offers are attractive, but read up on what happens if you pay late, as penalties can wipe out savings.
Key takeaways and FAQs
Key take: On an ₦18 million, 48-month loan, the difference between 9% and 22% rates is roughly 5.7 million in additional 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 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 said to cover pre-owned vehicles.
Is a 9% car loan real? Nord Finance announced single-digit financing from 9% for new cars to April 2026; Confirm eligibility, tenure and fees with the company.
Disclaimer: Car prices, loan rates, import duties and specs change frequently in Nigeria. Always confirm current figures with dealer, bank or official source before buying. The above repayment figures are illustrative estimates only.