Compare 4 Shariah-compliant products from 4 providers available in Lagos. Every listing includes Shariah oversight details, ratings, and direct provider links.
Vehicle finance for salaried customers in public and reputable private organisations, structured on Murabaha (cost-plus sale). Jaiz Bank buys the vehicle the customer selects and resells it to them at a disclosed cost-plus-profit price on deferred terms. Repayment is monthly from the customer's salary over 3 to 4 years, with a maximum tenor of 48 months, and salary domiciliation is required. Marketed on an easy application process. Aimed at employed buyers who want to spread the cost of a car without an interest-bearing auto loan.
Best for: Salaried public or private-sector employees who want to buy a car on a fixed cost-plus plan repaid from salary rather than an interest auto loan.
LOTUS Rides finances new and used vehicles for personal and commercial use. The bank funds up to 80% of the car's value with a 20% equity contribution, over tenors up to 5 years for new cars and 4 years for used, with used vehicles accepted up to 5 years old on the main financing page (up to 10 years old from verified dealers on the retail page). Monthly payments are capped around 33% of net salary, applicants must be 24 to 50 years old, salaried or business owners with 3 years' experience, and takaful motor cover comes at what the bank calls low rates. New-car customers get free vehicle servicing for 6 months.
Best for: Salaried Nigerians and small business owners who want fixed-cost, riba-free car finance and can fund a 20% deposit through a partner dealer.
Structure
murabaha
Vehicle Types
New cars, Used cars (up to 5-10 years old from verified dealers, pages conflict), Commercial fleets
Down Payment
20% equity contribution
Terms
Up to 5 years for new vehicles, Up to 4 years for used vehicles
Murabaha / Bai Muajjal / Ijara wa Iqtina (auto finance)NationwideEst. 2021
TAJBank Cost Plus Asset and Auto Finance (Murabahah)
TAJBank's retail asset and vehicle finance, built on Murabahah (cost-plus). The customer identifies the asset, the bank buys it and resells it to the customer at cost plus a fully disclosed profit, repayable on a monthly, quarterly or annual plan tailored to the customer's cash flow. The bank markets it for acquiring assets, including vehicles, with flexible repayment. A related Lease (Ijara) Finance covers the hiring of services and assets at a service fee plus mark-up, paid as a deferred lump sum or in instalments. Aimed at individuals who want to acquire a car or other asset on a fixed halal plan rather than an interest loan.
Best for: Individuals who want to buy a car or other asset on a fixed, cash-flow-matched cost-plus plan rather than an interest loan.
Structure
murabaha
Vehicle Types
Automobiles and other assets
Down Payment
Not published (verified 2026-08-04)
Terms
Monthly, quarterly or annual repayment (maximum tenor not published)
Alternative Asset Finance is AltBank's Ijarah lease line for personal asset acquisition: cars, household equipment, machinery and even homes, financed 'without the hefty upfront costs' so customers can 'conserve capital for other lucrative ventures'. The bank purchases the asset and leases it to the customer, who uses it while paying rentals. It is the retail sibling of the SME-focused AltLease facility, which for business assets carries published terms of up to NGN 20,000,000 per obligor over 24 months. Retail-side rates and tenors are quoted individually through the app or a relationship manager.
Best for: Customers who want a named, clean Ijarah contract for car or equipment acquisition and can negotiate the rental rate hard.
Structure
ijara
Vehicle Types
Cars, Household equipment, Machinery, Homes (also covered by dedicated Home Finance)
Down Payment
Not published for retail; SME AltLease requires 30% commitment deposit
Terms
Retail tenors quoted individually, SME sibling AltLease capped at 24 months
Ijarah (lease finance for cars, equipment and household assets)NationwideEst. 2023
Nigerian non-interest banks sell auto financing under Murabaha and Ijarah structures with different fine print. Here is what separates a good deal from an expensive one.
1
Structure: Murabaha vs Ijarah
Under Murabaha the bank buys the car and sells it to you at a disclosed total price, so your obligation is fixed from day one. Under Ijarah (lease-to-own) the bank owns the car and you pay rent until ownership transfers. The structure affects registration, early settlement, and what happens on default.
2
Get the Total Price in Writing
Most Nigerian non-interest banks do not publish auto financing markup rates online; pricing surfaces at application. In Murabaha the disclosed total contract price is the entire economic deal, so insist on it in writing, dated, before you commit.
3
Contribution and Tenure
Published terms in our dataset: Lotus Bank finances up to 80% of the vehicle cost, and Summit Bank's Lease to Own Finance runs 12 to 60 months. Your contribution, the tenor, and vehicle-age limits for used cars vary by bank.
4
Bundled Takaful
Comprehensive motor takaful is typically required on financed vehicles, and third-party motor cover is compulsory by law. Compare the all-in monthly cost between banks, not the headline installment, because takaful pricing differs.
Shariah Oversight in Lagos
How providers available in Lagos handle Shariah compliance verification
4 providers
Formal Shariah Board
Independent panel of scholars that reviews and approves products
Frequently Asked Questions
Common questions about islamic car financing in Lagos
How does Islamic car financing work in Nigeria?
Two structures dominate at Nigeria's non-interest banks. In Murabaha, the bank buys the vehicle and sells it to you at a disclosed marked-up price paid in installments. In Ijarah (lease-to-own), the bank owns the car and leases it to you, with ownership transferring at the end of the term. Both avoid interest: the bank earns a trading profit or rent on a real asset, never interest on a loan.
Is Islamic car financing available in Lagos?
Yes. We currently list 4 Islamic car financing products from 4 providers available to Lagos residents. Bank auto financing runs through branch and digital channels, so practical access depends on the provider's footprint; check each provider's coverage in the comparison.
What deposit and tenure should I expect?
Published terms vary by bank. Lotus Bank advertises financing of up to 80% of the vehicle cost, which implies a customer contribution of around 20%, and Summit Bank's Lease to Own Finance runs from 12 to 60 months. Most Nigerian non-interest banks do not publish their markup rates online, so ask for the total contract price in writing before committing.
Can I finance a used car Islamically?
Several banks consider used vehicles under Murabaha, usually with tighter vehicle-age limits and larger customer contributions than new cars. Terms differ enough between banks that this is worth comparing specifically; confirm each provider's used-vehicle policy at application.
What extra costs should I budget for?
Comprehensive motor takaful is typically required on financed vehicles and third-party motor cover is compulsory under Nigerian law. Budget for takaful contributions, registration, and any processing fees on top of your deposit. Ask for the all-in monthly figure including takaful, not just the financing installment.
What is the real difference from a conventional car loan?
In a conventional loan you owe money and pay interest on it. In Murabaha or Ijarah the bank owns or trades a real asset and earns profit or rent on that ownership; late-payment charges at non-interest banks route to charity rather than bank income. The monthly amounts can look similar, but the contract, the ownership, and the risk allocation differ.
Which Islamic finance providers are based in Lagos?
Lotus Bank is headquartered in Lagos, The Alternative Bank's network is anchored here, and the major Shariah fund managers (Lotus Capital, Stanbic IBTC Asset Management, United Capital, ARM, First Asset Management) operate from the city. Al-Barakah Microfinance Bank, the Islamic microfinance pioneer, has served Lagos since around 2010.
Does Lagos have Islamic microfinance?
Yes, with a caveat worth knowing: Al-Barakah Microfinance Bank operates Islamic products in practice but holds a conventional microfinance licence, unlike the three CBN-licensed non-interest microfinance banks in Bauchi, Kano, and Katsina. Its Islamic character is documented by academics rather than by licence class; ask for the contract details when you open an account.
How to Choose the Right Option in Lagos
A step-by-step guide to evaluating islamic car financing providers
1
Verify Shariah governance
Check whether the provider has an Advisory Committee of Experts under the CBN's non-interest banking framework, or named Shariah advisers for funds and takaful under SEC Nigeria and NAICOM rules. Named scholars and published Shariah rulings are the strongest signals.
2
Compare financing structures
Understand whether the product uses Diminishing Musharakah, Murabaha, Ijarah, Mudarabah, or Wakalah. Each has different risk, ownership, and cost implications, especially for early settlement.
3
Check branch and city coverage
Some products are offered nationwide through large branch networks or digital apps; others are limited to specific cities. Confirm the provider serves your city before applying.
4
Evaluate total cost
Look past the headline rate. For financing, ask for the full markup or rental pricing, processing fees, takaful cost, and documentation charges. For deposits, ask for the profit-sharing ratio and recent declared profit rates, not marketing tiers.
5
Read the fine print on rates
Mudarabah deposit profits are declared from actual pool results, and most Nigerian banks publish no indicative rates at all. Ask for the declared-rate history and the profit-sharing ratio in writing.
6
Consult a qualified advisor
For major decisions, speak with the bank's Shariah compliance department and, where the sums are large, an independent Islamic finance advisor who understands your situation.
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Lagos Market Snapshot
A region-level view of islamic car financing availability based on our latest provider dataset.
Total products in Lagos
4
Nationwide options
4
Region-specific options
0
Top providers currently available in Lagos
Jaiz Bank, Lotus Bank, TAJBank, The Alternative Bank
Halal Finance in Lagos: Market Overview
Lagos is the headquarters city of Nigerian Islamic finance's market side: Lotus Bank runs from Victoria Island, The Alternative Bank's network is anchored here, and the major Shariah fund managers (Lotus Capital, Stanbic IBTC Asset Management, United Capital, ARM, First Asset Management) all operate from Lagos, alongside the NGX where the Lotus Halal Equity ETF trades. Lagos is also home to Al-Barakah Microfinance Bank, the segment's pioneer since around 2010 (Islamic by practice, holding a conventional microfinance licence). Every national non-interest bank serves Lagos through branches and digital channels, all five NAICOM-licensed takaful operators write business here, and Noor Takaful's published office footprint includes Lagos. For fund investors and Fund VI pension savers, Lagos access is as full as it gets in Nigeria.
Also Available in Lagos
Explore other halal financial products for Lagos residents
Reviewed by: HalalWallet Editorial Team•Last reviewed: 2026-03-06•Disclosure: No provider pays for placement or ranking on this page. Editorial policy and full disclosures.
Reviewed monthly and updated when regional availability, provider coverage, or product details change.
How We Review Car Financing in Lagos
We prioritize data accuracy, transparency, and Shariah-related disclosures. Product availability and details are sourced from provider materials and our structured product dataset. We do not fabricate statistics, reviews, or financial projections.
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.