Nord Automobiles has unveiled Nord Finance, a new subsidiary designed to make vehicle ownership more accessible to Nigerians.
Nord Finance is a single-digit interest vehicle financing scheme, offering loans from as low as 9% to make brand-new cars more accessible to individuals and businesses.
The company says the initiative will provide structured financing options, helping customers spread payments and normalize driving brand-new cars.
What they are saying
Speaking at the launch in Lagos, Chairman and CEO of Nord Automobiles, Oluwatobi Ajayi, noted that many Nigerians with stable incomes still struggle to pay the full cost of brand new vehicles upfront, a situation Nord Finance aims to ease.
“Nord Finance essentially is a company set up to make auto ownership, in this case Nord vehicle ownership, a lot easier for our customers. It’s not just a car loan company, it’s an entire ecosystem of peace of mind for car ownership.”
“We saw a lot of wishes, people loving our vehicles but unable to buy because they can’t see themselves bringing out that amount of money at once. We realized we had to solve this problem.”
Nord Finance, he added, will provide structured financing backed by professional credit analysts and former bankers. Unlike earlier in-house arrangements, the new entity operates independently, with Ajayi stressing: “I’m not even in the credit committee. We’ve hired people who understand finance and credit. Doing it gives us structure.”
Interest rates and discipline
The company is offering financing at a 9% interest rate, which Ajayi described as strategic.
“We have to attract people in, even if it means reducing our profitability. We need to give people hope that they can enjoy what they enjoy anywhere in the UK or US, right here in Nigeria,” he said.
Ajayi warned, however, that defaults would undermine the model. “The problem starts when you don’t pay on time. That’s when that 9% becomes really not so good for us. But if you pay on time, it’s good.”
To mitigate risks, Nord Finance has put mechanisms in place to recover assets.
“The asset is going to remain Nord’s. The title of the collateral is in Nord Finance’s name. So if customers default, just like it happens in America, we’ll come and carry the car,” Ajayi explained.
He emphasized that Nord Finance is not just an arm to boost vehicle sales but a standalone business with potential to grow into a profitable financial services company.
