Due to the New Automotive Industry Development Plan (NAIDP) that increased the prices for imported vehicles, and the economic slowdown triggered by low oil prices, Nigeria’s growth in fleet size slowed down remarkably in last years. However, it is expected that in the short-term fleet growth will stabilise in a range between ~% and ~% per annum.
Challenge of Short Repayment Period: Commercial banks usually require repayment of vehicle loans within four years, due to the rapid depreciation of the value of vehicles given poor road conditions. According to one of the most established vehicle finance providers, the monthly repayment amount should not exceed ~% of the monthly income of the borrower. The short repayment period has been a key challenge for low- and middle-income households when it comes to accessing vehicle finance.
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Promotion of National Auto-manufacturing: Government has been taking various initiatives to promote domestic vehicle manufacturing industry. It provided various benefits to national car buyers.
Boosting Second Hand Vehicle Sales: A substantial number of used automobiles are imported from the US since the vehicle characteristics in this market have been more in line with customer demand and tastes in Nigeria, which were not always fulfilled by entry-level models from Europe. African importers of old cars import them from all over the world to resale for a fair profit.
Analysts at Ken Research in their latest publication “Nigeria Car Finance Market Outlook to 2027F - By Distribution Channels (OEMs, Banks, NBFCs, Commercial Banks, Investment Bank), By type of Vehicles (Passenger, Commercial), By tenure of Loan (0-5 years,6-7 years, and 8-9 year) By condition of Vehicle (old, new), and By Region (Central, Southern, Eastern Northern and Other).” observed that Nigeria Car Finance Market is expected to showcase considerable growth in the coming five years. It is anticipated to grow more quickly in the next years with the easy availability of finance and low-interest rates. The car finance market in Nigeria is expected to grow at ~% CAGR over the forecasted period 2022-2027F.
Key Segments Covered in the report: -
By Region
- Southern
- Eastern
- Northern
- Central
By Condition of Vehicle
- New
- Old
By Distribution Channels
- OEMs
- Banks
- NBFCs
- Commercial Banks
- Investment Bank
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By Type of Vehicles
- Commercial
- Passenger
By Tenure of Loan
- 0-5 years
- 6-7 years
- 8-9 years
Key Target Audience
- Auto Finance Providers
- Insurance companies
- Car Manufacturers
- Financial service provider
- NBFCs
- Fin-tech companies
- Global automotive finance companies
- Government Bodies & Regulating Authorities
Time Period Captured in the Report:
- Historical Period: 2017-2022P
- Base Period: 2022P
- Forecast Period: 2022P-2027F
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Companies Covered:
- United Bank Of Africa
- FCMB
- Toyota
- Access bank
- Stanbic IBTC
- Guaranty Trust Bank
- Zenith Bank.
- Fidelity Bank
- Ecobank
Key Topics Covered in the Report
- Nigeria Car Finance Market Overview
- Nigeria Car Finance Market Segmentation
- Ecosystem and Business Cycle of Nigeria Car Finance Market
- Market Share of Major Players in Nigeria Car Finance Market
- Competition Scenario of Nigeria Car Finance Market
- Industry Analysis of Nigeria Car Finance Market
- Value Chain of Nigeria Car Finance Market
- Key Growth Drivers in Nigeria Car Finance Market
- End User Analysis of Nigeria Car Finance Market
- Key Challenges of Nigeria Car Finance Market
- SWOT Analysis of Nigeria Car Finance Industry
- Future Outlook of Nigeria Car Finance Market
- Trends and Development of Nigeria Car Finance Market
- Analyst Recommendations
- Research Methodology
For more information on the research reports, refer to below link: -
Business Opportunities in Nigeria Car Finance Market
Related Reports by Ken Research:-
Oman Car Finance Market Outlook to 2027F
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