In a country where the automotive industry is heavily reliant on imports, Nord Automobile Limited is rewriting the playbook. Established in 2017, the company is committed to producing affordable, high-quality vehicles designed specifically for the Nigerian market. But like many businesses with grand ambitions, Nord faced several challenges along the way, with financial constraints being one of the most pressing.
Despite the growing demand for locally assembled vehicles, Nord lacked the working capital to ramp up production and compete with established automotive giants. The tariffs on imported vehicles made it even more difficult to provide affordable options for Nigerians, and the company tried to secure the necessary funds to scale its operations. With the Nigerian government actively encouraging local content and production, Nord’s growth was essential, not only for the company but also for the country’s broader economic goals.
That’s when The Alternative Bank (AltBank) stepped in. Unlike traditional banks, AltBank offers non-interest banking solutions, which were perfectly aligned with Nord’s values and goals. Instead of providing a one-size-fits-all financial product, AltBank designed a customised financing package to meet Nord’s specific needs. The bank understood the company’s vision and worked closely with its leadership to ensure that the financial support offered would allow Nord to expand and thrive.
AltBank’s support came in the form of a Mezzanine Facility, which included both debt finance and an equity stake in the company. The mezzanine structure allowed Nord to access affordable funding with fewer restrictions, enabling the company to meet its immediate working capital requirements. This flexibility proved invaluable, as it gave Nord the room to increase production capacity and improve its operational efficiency.
In addition to the mezzanine facility, AltBank provided a Musharakah Facility, which enabled Nord to secure a contract to deliver 50 CNG buses to a federal government parastatal. This partnership helped Nord break into the commercial vehicle market, diversifying its product offerings and increasing its brand visibility in the public sector. By securing this government contract, Nord not only expanded its customer base but also aligned itself with Nigeria’s green energy initiatives.
AltBank’s involvement didn’t stop at funding. The bank took an equity stake in Nord, helping to strengthen its corporate governance and expand its capital base. This equity investment allowed Nord to build stronger internal systems and processes, positioning the company for long-term success. AltBank’s advisory services further enhanced Nord’s ability to manage its growth effectively, setting the stage for continued expansion.
Today, the results of this partnership are clear. Nord has significantly increased its production capacity, with vehicles now being assembled locally at affordable prices. This reduction in vehicle prices is helping to alleviate the financial burden on Nigerian consumers who previously had to rely on expensive imported cars. Nord’s decision to assemble locally has also reduced Nigeria’s reliance on foreign-made vehicles, contributing to the country’s push for self-sufficiency in manufacturing.
The impact of AltBank’s support goes beyond just financial results. Nord’s growth has led to job creation, with new positions in assembly, management, and technical roles. By investing in local manufacturing, Nord is contributing to Nigeria’s economic diversification, helping to reduce the country’s dependency on oil exports and creating a more sustainable future.
AltBank’s unique approach to financing has given Nord the tools to succeed in a competitive industry. With more affordable vehicles, a broader product range, and a stronger market position, Nord is poised to become a leader in Nigeria’s automobile sector. The partnership between AltBank and Nord has not only helped the company grow but has also contributed to the economic development of Nigeria as a whole, reinforcing the importance of local content, sustainability, and innovation.
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