Nigeria has an installed capacity to produce between 450,000 and 500,000 vehicles annually, but access to finance, supportive legislation and local component manufacturing remain critical to unlocking the country’s automotive industry, the National Automotive Design and Development Council (NADDC) has said.
The Director-General of NADDC, Joseph Osanipin, disclosed this on Tuesday at the opening of the 26th Abuja International Motor Fair, noting that Nigeria’s estimated annual vehicle demand ranges between 350,000 and 450,000 units.
According to him, the country’s existing assembly capacity could meet domestic demand if the necessary support systems were put in place to strengthen local manufacturing.
Osanipin said access to affordable financing, an enabling legislative framework and the development of local automotive components were essential to improving production and reducing dependence on imported vehicles.
He disclosed that the Federal Government had released implementation guidelines for the Nigeria First Policy in the automotive sector, while the council was working on an automotive bill and a component development programme to deepen local manufacturing.
The NADDC chief also highlighted efforts to improve vehicle affordability through consumer credit, disclosing that the council had partnered with the Nigerian Consumer Credit Corporation (CREDICORP) to develop guidelines for financing vehicle purchases.
He added that more than 50 per cent of CREDICORP’s disbursements so far had gone to the automotive sector.
Osanipin said most of the vehicles displayed at the motor fair were locally assembled, adding that manufacturers had the capacity to customise vehicles to meet the requirements of government institutions and other buyers.
He also disclosed that the council had reached an agreement with vehicle assemblers to establish after-sales service workshops across the country, including through partnerships with existing automobile workshops.
To strengthen the industry’s technical capacity, Osanipin said NADDC had trained about 40,000 automotive technicians to support vehicle maintenance and after-sales services.
The Minister of Industry, Trade and Investment, Jumoke Oduwole, described the automotive sector as a priority under the Federal Government’s industrialisation agenda.
Oduwole said the government was supporting the industry through legislation, access to credit, regulations and measures to curb vehicle smuggling.
She added that Nigeria would host an automotive exhibition during the 2027 Intra-African Trade Fair in Lagos from November 5 to 11, providing manufacturers with opportunities to showcase vehicles and components, attract investment and access regional markets.
According to her, Nigeria needs to strengthen its position in Africa’s automotive value chain under the African Continental Free Trade Area (AfCFTA).
She identified the automotive industry’s connections with the steel and solid minerals sectors as opportunities to expand industrial production and create employment.
Meanwhile, the President of the Electric Vehicle Assemblers and Manufacturers Association of Nigeria (EVAMAN), Mustapha Audu, said electric mobility could create opportunities for domestic manufacturing, investment and job creation.
Audu, who was represented by Sam Falleye, Chairman of Saglev, disclosed that the association had 14 member companies involved in electric vehicle assembly and manufacturing in Nigeria.
He urged the Federal Government to translate its Nigeria First Policy into procurement opportunities for locally assembled vehicles, arguing that increased patronage from public institutions, corporate organisations and fleet operators would support factories, sustain jobs and strengthen domestic supply chains.
The 26th Abuja International Motor Fair, themed “Driving Nigeria’s Automotive Future”, is holding from November 10 to 13 at Eagle Square, Abuja, bringing together manufacturers, assemblers, investors, policymakers and other industry stakeholders.