AltBank Targets Informal Transport Sector with Nationwide EV Financing Drive

The Alternative Bank is ramping up efforts to transform Nigeria’s transport sector through a nationwide electric vehicle (EV) financing initiative aimed at integrating informal operators into the formal economy.

The bank said the move is designed to reposition transport not just as a mobility service, but as a critical economic driver capable of boosting incomes, reducing operating costs, and expanding access to financial services for millions of operators.

Speaking at the Abuja Compact on Electric Mobility Roundtable, the Divisional Head of Commercial & Institutional Banking (Core North), Mohammed Abdul, emphasised the central role of transportation in economic development. He noted that efficient mobility underpins access to essential services and supports productivity across sectors.

According to him, the transition to electric mobility is already creating new economic opportunities across the transport value chain, including higher-paying jobs and improved livelihoods for operators.

He added that EV adoption could significantly cut fuel and maintenance costs, which have long burdened transport businesses.

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The financing model, tailored to Nigeria’s largely informal transport ecosystem, leverages non-interest banking structures such as Musharakah (joint partnership) and Mudarabah (profit-sharing). These models are intended to accommodate operators who lack formal credit histories or have irregular income streams.

As part of its rollout strategy, the bank is partnering with local manufacturers and mobility firms, including Nord Automobiles and Bankrol CamelEV, to scale EV adoption. It is also collaborating with state governments such as Niger State and transport operators like Metro Africa Express to pilot and expand financing schemes.

Industry stakeholders at the roundtable highlighted the broader potential of EVs beyond transportation, including their use in supporting mini-grid energy systems and stabilising operator incomes amid fluctuating fuel prices.

Participants at the dialogue included representatives from the National Automotive Design and Development Council, Clean Technology Hub, and the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, among others.

With pilot programmes already underway, AltBank says it plans to scale the initiative nationwide and eventually expand into West Africa, positioning electric mobility as a cornerstone of sustainable transport development in the region.