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
SouthernEasternNorthernCentralBy Condition of Vehicle
NewOldBy Distribution Channels
OEMsBanksNBFCsCommercial BanksInvestment BankTo Know More about industry trends, Request a free 30 Min Expert call
By Type of Vehicles
CommercialPassengerBy Tenure of Loan
0-5 years6-7 years8-9 yearsKey Target Audience
Auto Finance ProvidersInsurance companiesCar ManufacturersFinancial service providerNBFCsFin-tech companiesGlobal automotive finance companiesGovernment Bodies & Regulating AuthoritiesTime Period Captured in the Report:
Historical Period: 2017-2022PBase Period: 2022PForecast Period: 2022P-2027FVisit this Link Request for a custom report
Companies Covered:
United Bank Of AfricaFCMBToyotaAccess bankStanbic IBTCGuaranty Trust BankZenith Bank.Fidelity BankEcobankKey Topics Covered in the Report
Nigeria Car Finance Market OverviewNigeria Car Finance Market SegmentationEcosystem and Business Cycle of Nigeria Car Finance MarketMarket Share of Major Players in Nigeria Car Finance MarketCompetition Scenario of Nigeria Car Finance MarketIndustry Analysis of Nigeria Car Finance MarketValue Chain of Nigeria Car Finance MarketKey Growth Drivers in Nigeria Car Finance MarketEnd User Analysis of Nigeria Car Finance MarketKey Challenges of Nigeria Car Finance MarketSWOT Analysis of Nigeria Car Finance IndustryFuture Outlook of Nigeria Car Finance MarketTrends and Development of Nigeria Car Finance MarketAnalyst RecommendationsResearch MethodologyFor more information on the research reports, refer to below link: -
Business Opportunities in Nigeria Car Finance Market
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Oman Car Finance Market Outlook to 2027F
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