Nigeria has installed capacity to produce between 450,000 and 500,000 vehicles annually, against domestic demand of up to 450,000, but actual production remains significantly below capacity, the National Automotive Design and Development Council (NADDC) has said.
The council's Director General, Joseph Osanipin, said the country could meet a substantial portion of its vehicle demand locally if the necessary policies, financing and supporting infrastructure were put in place.
He spoke at the opening of the 26th Abuja International Motor Fair themed: "Driving Nigeria's Automotive Future."
"As of today, we are between 450,000 and 500,000 installed capacity for automobile in Nigeria," Osanipin said.
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"Today also, Nigeria buys between 350,000 to 450,000 vehicles annually. What that means is that we can produce it when we put in place some necessary tools," he added.
He identified access to finance, supportive legislation and local production of automotive components as critical requirements for maximising the country's manufacturing capacity.
Osanipin said the council had developed guidelines for implementing the Federal Government's Nigeria First Policy in the automotive sector and circulated them to ministries, departments and agencies to encourage patronage of locally assembled vehicles.
He said NADDC was also working on an automotive bill and a component development programme to strengthen local manufacturing.
The NADDC boss said the council had collaborated with the Nigerian Consumer Credit Corporation (CREDICORP) to develop guidelines for accessing consumer credit to promote vehicle purchases.
He added that more than 50 per cent of CREDICORP's disbursements so far had gone to the automotive sector.
Osanipin said the council was working with vehicle assemblers to establish after-sales service workshops nationwide through partnerships with existing workshops.
He added that about 40,000 automotive technicians had been trained to support vehicle maintenance and after-sales services.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the Federal Government would support the industry through consumer credit, legislation and regulatory reforms.
"We are going to support you. I have the privilege of being the chair of the council of ministers responsible for trade under the AfCFTA for this year, and we're going to support the sector with your legislation, your access to credit, consumer credits, your regulations," she said.
Oduwole said access to consumer financing was important to enable Nigerians to purchase quality vehicles.
"We also want Nigerians to have access to quality cars, which is why it was so important to have a consumer credit," she said.
She said the government would also support Nigerian automotive manufacturers to access markets across Africa through the African Continental Free Trade Area (AfCFTA).
"Beyond the Nigerian market, we're also going to support you to interconnect with the African market and the value chains that exist on the continent so that Nigeria can take a prominent role," Oduwole said.
The minister said Nigeria would host an automotive exhibition as part of the 2027 Intra-African Trade Fair scheduled to hold in Lagos.
She said the exhibition would provide opportunities for manufacturers to showcase vehicles and components, attract investment and connect with African markets.
Oduwole identified the automotive industry's linkages with steel, solid minerals, critical minerals and rare earths as opportunities for industrial expansion and employment generation.
The Chairman of the organising committee, Ifeanyi Agwu, said Nigeria needed to move beyond being a major vehicle destination to becoming a regional automotive manufacturing hub.
"Nigeria should not remain the biggest destination for vehicles in this part of Africa. We must become a leading centre for vehicle assembly, component manufacturing, component distribution, services, innovation and automotive trade," he said.
Agwu called for stronger collaboration among government, assemblers, component manufacturers and research institutions to increase local value addition, attract investment and create jobs.
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He said the fair should serve as "a strategic platform for product inauguration, business relationships, investment and engagement with government procurement teams."
Meanwhile, the President of the Electric Vehicle Assemblers and Manufacturers Association of Nigeria (EVAMAN), Mustapha Audu, said electric mobility offered opportunities to strengthen domestic manufacturing and create jobs.
Audu, represented by the Chairman of Saglev, Sam Faleye, said the association had 14 member companies involved in electric vehicle assembly and manufacturing in Nigeria.
He said EVAMAN was focused on "policy advocacy, industrial standards, investment attraction and local capacity development."
Audu said the Federal Government's Nigeria First Policy could encourage public institutions and private organisations to patronise locally assembled vehicles.
He said increased patronage would "support Nigerian factories, sustain jobs, strengthen domestic supply chains and encourage investment in engineering and technical skills."
