AltBank targets informal sector with nationwide EV financing push

The Alternative Bank (AltBank) is ramping up electric vehicle (EV) financing, targeting Nigeria’s informal transport sector as a new growth area.

The Alternative Bank (‘AltBank’) has announced that it is making a major push into electric vehicle (EV) financing, as it seeks to bring Nigeria’s largely informal transport market into the formal financial system.

The Bank said the move aims to position the sector as a key growth opportunity, noting that
beyond clean energy, EVs are emerging as income-generating assets that can create jobs, reduce operating costs, and open new pathways to financial inclusion for transport operators who have historically been shut out of conventional lending.

Mohammed Abdul, Divisional Head, Commercial & Institutional Banking (Core North), stated this at the Abuja Compact on Electric Mobility Roundtable, where government officials, financiers, and industry players gathered to explore how electric mobility can strengthen Nigeria’s economy and support its energy transition.

“Without transport, you cannot effectively achieve growth in any of the other sectors. Mobility powers everything. If you need to get to a hospital, you need mobility. If you are moving from home to the farm, you need mobility. Even in renewable energy operations, mobility is essential,” Abdul said.

He pointed to the sector’s growing economic impact, particularly in job creation and income growth, noting that the shift toward EVs is generating higher-paying opportunities and improving livelihoods across the value chain.

The Bank said it is already working with partners to expand EV adoption across the country, including exploring retrofitting as a lower-cost entry point for operators looking to transition from petrol-powered vehicles.

Abdul said the Bank adopts financing structures suited to the realities of Nigeria’s transport sector, where many operators lack formal credit histories and earn irregular incomes.

“Using models such as Musharakah, where both parties contribute capital and share profits, or Mudarabah, where we provide funding and you bring expertise, we can jointly invest in viable ventures,” he said.

“These models are designed to address the realities of Nigeria’s informal transport sector, where credit histories are limited and income streams are irregular. Our goal is to provide end-to-end financing solutions that are practical, accessible, and aligned with real economic activities,” he added.

Building on its efforts supporting Nigerian automobile companies like NORD and Bankrol CamelEV, AltBank is also collaborating with state governments, including Niger State, and private operators such as Metro Africa Express to test and expand EV financing options for local stakeholders. Ahmed said the current effort is a pilot, with ambitions to scale across Nigeria and into West Africa.