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By Moses Akaigwe
The automotive industry in Nigeria has the potential to manufacture vehicles, spare parts and components for local consumption and export.
This was the view expressed by the Director General, National Automotive Design and Development Council (NADDC), Mr. Oluwemimo Joseph Osanipin, at the opening ceremony of
the 19th Lagos Motor Fair, and the 12th Africa Autoparts Expo, which took place from March 12-14, 2025, at the Federal Palace Hotel, Lagos.
Osanipin disclosed that presently, about 34 auto plants are actively in vehicle production in the country, while about 50 components and parts makers are located across the country.
He told the guests, “With a population of over 200 million people and a growing middle class, there is a huge market for vehicle products in Nigeria, as well as across the West African Sub-region.
“There is a wide scope for new investment in the manufacture of low cost utility vehicles in Nigeria which could meet the needs of the vast majority people that live mostly in the sub-urban and rural areas.”
According to him, an average car has up to 2,000 parts made from steel, cast iron, alloy steel, tin, aluminum, wood, glass, leather, and plastics.
“Aladja Steel Company was established to produce steel billets, rods and angles. The Ajaokuta Steel Company, when fully operational would produce steel sheets, pig iron and alloy steel. The Eleme Petrochemical Complex is to produce propylene, polyethylene ethylene, and propylene. The Aluminum Smelter Company is to produce aluminum ingots. “Though some raw materials abound in Nigeria will still need to be imported, a vast amount of raw materials abound in Nigeria for auto components manufacturing.”
On investment incentives, he said that in addition to the general incentives available to all investors in Nigeria, “specific incentives available for the automotive industry include: favourable tariff differential between CKD and Fully Built Unts (FBU) of vehicles.
Tax concessions: additional tax relief for three years for assemblers/manufacturers of automotive components and products, and 10 years forassemblers/manufacturers of electric vehicles and components in EVs and patronage of local assembly plants by the government.”
He also spoke on the accreditation of compressed natural gas (CNG) powered conversion workshops, stating, “In line with the Presidential Compressed Natural Gas Initiative (PCNGi), of President Ahmed Tinubu, the Council has commenced accreditation of all CNG powered vehicles conversion workshops to ensure international best practices at the workshops.
He said the major focus is on well-equipped facility and qualified personnel in the conversion centres. Recently, the Council organised a Stakeholders Engagement Meeting in Abuja where the guidelines for safe and standard conversion procedures were rolled out.
“To that end, an online portal has been created for registration of existing and prospective converters. Upon expression of interest by registration and completion of the requirements, our experts shall conduct thorough inspection of the workshops to ensure all standardization and safety measures are adhered to, before accreditation and certification, because we will not compromise quality service delivery in any workshop.
“Our utmost priority is safety, and in partnership with other relevant stakeholders, we will uphold the programme as part of the efforts of NADDC to facilitate the adoption of green energy mobility and improve safety measures in the transport sector.”
In consonance with the mission of the NADDC, he said the Federal Government’s inaugurated the 2023 NAIDP implementati committee, to ensure proper implementation of the plan, for the realisation of full scale local production of multiple brands of vehicles and component parts that would be world standard and compete favourably in the global market. When this plan is legislated upon, it would spur more activities in the sector, and promote the local automotive industry.
“We will intensify our engagements with other stakeholders in a concerted effort to enhance cooperation in the area of implementation. It is through participatory integrated approach that we can achieve effective and efficient Auto Policy in Nigeria.
“The Nigerian automotive industry offers significant investment opportunities in the manufacture of vehicles, motorcycles, tricycles, and bicycles as well as their components and spares.
The approval of the 2023-NAIDP and adoption of local CNG-Powered vehicles by the federal government is a proof of its desire to ensure that more automobiles and components are produced locally. Nigeria also has the potential of becoming motor vehicle manufacturing centre for the entire West African and Central African sub-regions.”
In his remarks, the Chairman, organising committee of the fair, Mr. Ifeanyichukwu Agwu, said, the automotive industry is vital to Nigeria’s economy, generating revenue, creating employment, and showcasing the state of our economy.
Agwu, who is also the Managing Director of BKG Exhibitions, said fu“However, the sector faces significant challenges, including the need for a well-thought-out policy and program to drive growth and development.
“I urge the Federal Government’s to reinstitute and drive a revised National Automotive Industry Development Plan (NAIDP) that reflects the current realities and developments in the sector. The global de-carbonization agenda presents challenges that our industry must address urgently.
