obembet: Due to the high cost of import duties placed on the Automotive industry possibly to encourage local production, improve the economy, and still make selling price of each manufactured car affordable by an average citizen, the federal government in 2013 adopted an Automobile policy, in a bid to encourage foreign and indigenous car manufacturers to site their assembly plants within its territory since vehicles produced in the country don’t attract import levies, thus tend to be cheaper than its foreign counterparts.
The good news is that the Nigerian automobile manufacturing Industry is growing with a handful of these companies producing motor spare parts, fixing broken vehicle components, revamping used cars and assembling imported car parts. Just a few are into production of brand new (tear rubber) vehicles in Nigeria and that is a backlash at least for the labour market that begs for more employment opportunities.
Over the years, the growth of the auto Industry has witnessed series of challenges that is seeing to the preference given to foreign fairly used (Tokunbo) cars into the country. The reasons behind this shift are embedded in the history of this Industry in Nigeria especially that of the 1980s. Spare a few minutes to know what really happened.
History of Automobile manufacturing in Nigeria
The history of the Automotive Industry in Africa per se dates back to the colonial rule era when the British merchants brought them in during the ’50s into their protectorates. After the independence, the government went into a joint venture partnership that brought in world-class makers of fuel-powered conveyance units at the time from America, Germany, France and the United Kingdom which saw to the establishment of the Six assembly plants following the oil boom of the 1970s:
National Truck Manufacturers, Kano
Volkswagen of Nigeria Limited, Lagos
Peugeot Automobile Nigeria Limited, Kaduna
Anambra Motor Manufacturing Limited, Enugu
Leyland Nigeria Limited, Ibadan
Steyr Nigeria Limited, Bauchi
That partnership included subsidies on imported car parts to encourage these foreign experts.
These assembly lines were mainly into production of commercial Trucks and Passenger cars. Apart from the National Truck manufacturers located in Kano, Leyland Nigeria and Anambra Motor Manufacturing Limited were particularly into massive production of Trucks, Police vans and other military, security personnel vehicles. On the other hand, Volkswagen & Peugeot took care of passenger cars.
One can safely say that the government at the time heavily patronized and supported the Auto Industry mainly to enhance movement (mobility).
Since demand for these products was high enough to keep these companies in business, more than 100 units were reported to have been assembled per day. These plants produced the popular cars of the 1970 – 1980s and also left a trace in some of the vehicles we use today. The cars produced include: Peugeot 504, 505, and other Volkswagen products like Beetle, Jett, the Golf, Passat, and the Kombi bus which later metamorphosed into Danfo that we know on Lagos roads today.
Fast-forward to 1989, the country experienced a shortfall in oil prices and since crude oil contributed reasonably to the national treasury, the industry started experiencing a decline in demand which resulted in some of the firms going out of market.
Having been faced with such an unexpected tragedy, the Nigerian government tried its best to remedy the situation including increased charges on import duties so as to meet up. That move did backfire as cost of production went up, initially suppliers were not able to meet up with demand from buyers due to increased cost of production.
When it continued that way, people resorted to Tokunbo cars which became cheaper than Made-in-Nigerian cars and that was how we got to where we are today.
Car Manufacturers in Nigeria Now you know how Tokunbo cars became the order of the day, it is worth mentioning that Nigeria still have automobile manufacturers who have managed to thrive amidst high influx of Tokunbo (used) cars like Toyota, Mercedes and Honda.
For the sake of simplicity, we have divided the list into indigenous and foreign vehicle manufacturers
List of Indigenous Automobile Manufacturers in Nigeria
1. Nord Automobiles Limited
Ajayi Joshua Oluwatobi is the founder and CEO of the local manufacturing firm, Nord Motors. He is also a polished entrepreneur and co-founder of Jetvan Automobiles Limited, a recognized dealer of Mercedes-Benz Sprinter in the country.
Currently the company has its headquarters in Lagos with some of its products including Nord A3, Nord Max, Nord A5, Nord Flit, etc. The firm aims to re-establish Nigeria as a car-manufacturing country once again.
2. Lanre Shittu Motors (LSM)
The advent of Trucks in Nigeria predates independence and LSM is aware of its need, hence the company’s resolve to make available these vehicles to fellow citizens at affordable rates.
LSM is owned by Lanre Shittu and this “assembly” produces over 150 trucks per month.
3. Innoson Vehicle Manufacturing
Innocent Chukwuma widely known as Innoson Motors is an indigenous car manufacturer who rose from a motorcycle spare parts trader to a big name in the Automotive industry in Nigeria and Africa at large. Its automobile division (the IVM) which is a subsidiary of Innoson Group of Companies was established in 2007 – got recognized as the first indigenous car manufacturer in Africa by the administration of former President Goodluck Ebele Jonathan who commissioned the company on the 15th of October 2010.
4. Peugeot Nigeria
One of the foremost auto parts assembly plants in Nigeria is owned by Peugeot as we indicated in the brief auto history. The company which happens to be a joint venture between Peugeot and Nigerian government since 1969 is still functional till today in Kano despite its numerous challenges.
The federal government later sold its equity stake in this partnership to ASD Motors, making the new shareholders one of the owners.
5. Globe Motors
Having been introduced into the Nigerian markets by Globe Motors, in 2018, the Japanese manufacturer, Hyundai partnered with its major distributor in Nigeria to launch it’s very first auto factory in the country.
Since then, we have witnessed a number of Nigerian-made Hyundai cars like Hyundai Elentra, Accent and a few more. Apart from that, Globe has to its portfolio cars from some other brands like Mercedes-Benz, Toyota and Higer.
6. Dana Motors
Dana as we all know is not just into Airline, they are also into the Automobile Industry. It has a factory where it produces mainly Kia cars especially its make called Kia Rio which became customers favorite.
7. Stallion Motors
In what seemed like a bid to privatize the economy, the FG also sold its stake it had in Volkswagen of Nigeria Limited to Stallion Motors.
This acquisition saw to the locally assembled Nissan vehicles that flooded the auto market in 2014. Producing them here reduced the price of these products which seemingly got the attention of some government officials who later adopted the brand as an official government car.
8.Coscharis Motors
This company is one of the most popular and sought-after assembly plant for luxury cars like BMW, Morris Garages, Ford, Rolls-Royce, Jaguar, Land Rover and MINI vehicles. In 2018, the Nigerian auto dealer completed its ultramodern plant with production capacity set to churn out over 10,000 vehicles every year.
The company has so many showrooms and Aftersales services across the country with its head office located in Lekki, Lagos. You can know more about the parent company profile here. Meanwhile, its CEO is no other than Cosmas Maduka.
9. Proforce Motor
PROFORCE LIMITED was incorporated in 2008 as a total defense solution provider specialized in the manufacturing of armored vehicles and personal protection.
Ade Ogundeyin, Founder/CEO, Proforce Limited, a leading defense company and makers of military equipment and defense systems. The delegation which was led by Engr. Dideolu Falobi, FNSE, National Chairman, UNILAG Faculty of Engineering Alumni Association (UNILAGFEAA)
10. Elizade Motor ( JAC)
Auto Land Ltd, authorised dealer of JAC Motors in Nigeria, on Wednesday started assemblage operation in Lagos to roll out 15, 000 vehicles yearly from Semi Knock Down (SKD) parts. The plant, which is currently operating on a single shift was certified by the Federal Government to build different brands of cars.
Chief Michael Ade-Ojo is the founder of Elizade University, Ilara Mokin, Ondo State and Elizade Motors. Today, the company which Ade Ojo started with just one support staff in 1971 has become a conglomerate with several subsidiaries including Toyota Nigeria Limited, Mikeade Investment Co. Ltd, Mikeade Property Dev. Co.
Lagos, A city housing over 22 million residents, is experiencing an unprecedented transformation with a slew of mega projects that are set to reshape its landscape and economy.
As the Largest City in Africa, the Cultural, economic and financial power house of west Africa, Lagos seeks to set an example of what a true mega, highly developed and black populated city should be, hence its drive towards upgrading public infrastructure and attracting investments in line with world class practices.
From infrastructure developments to industrial ventures, these projects are bringing forth a wave of progress and opportunities. With the progressive contribution of past Governors and the Leadership of the current governor, Babajide Sanwo-Olu, Lagos is positioning itself as a regional powerhouse and a prime investment destination in Africa.
To achieve this Lagos needs a major makeover. The video below showcases the top mega construction project projected to truly transform the city.
ufotunang: ..and are you sure those refineries will work...?... since 1999 till now they have been on rehabilitation...more than 20 years on rehabilitation but not working
Gadafii: The one zamfara state government abi who dey control that illegal mine for zamfara huge pass Wetin Nigeria Dey reserve
Imagine individuals can mine their gold in their regions illegally in the north but southerners can’t refine their one crude😂😂
Two different cases..
The SS should drill their wells for their own oil...same way northerns dig the ground for their gold...rather than taping the pipeline of another person own
social gatherings Hypocrites, especially the kinds that will judge you for the same sin they commit in another way.. church alcohol and smoking unnecessary stress noisy people Poverty Foolishness I avoid religious/ churchy people like plague..
ufotunang: ..and are you sure those refineries will work...?... since 1999 till now they have been on rehabilitation...more than 20 years on rehabilitation but not working
PH refinery will work.. all those years what was being done was TAM or regular maintenance ..the previous administration devised another way to bring it back to life..
the same contractors that built it are the ones repairing it now..
ufotunang: .... federal government so far has spent 10 trillion naira to restore and bring them back...but cannot bring the refineries back till now with 10 trillion naira spent so far... because of corruption and government officials diverting some of the 10 trillion naira to their bank accounts to enrich themselves...so the more money is pumped into the refinery by federal government the more the government officials will divert the money to their bank accounts and enrich themselves
Port Harcourt and warri refinery are under rehabilitation
Despite the overthrowing of the democratic system of government in Niger republic which brought the full opposition of ECOWAS countries including Nigeria. The FG is not backing down of a major rail link that aims to Bridge both nations for transportation and commerce.
Poleski: Dangote is a crooked monopoly shark. He will never reduce the price of his overpriced cement. He would rather increase it.
If you think his new refinery will reduce fuel prices when it starts production, think again.
Lol..but it never promised..it only promised end of importation and scarcity.. If government doesn't pay him subsidy..he will sell at international rate..
You obviously are unable to make yourself heard on a public forum without putting your poor parental upbringing on display. This is obviously not Tinubu's fault, even if he probably also lacked proper upbringing himself.
You need to get a life Son ...all your comment are always without cognitive reasoning.. Unnecessary hatred and bigotry will rot your brain real soon..
It's funny how, People will choose to play dumb even in clear cases only to satisfy their hatred and foolishness..
You could have just keep scrolling if you really weren't happy about BUA... than to dig up rubbish to back your self inflicted headache..
The last license for cement import was issued during Obasanjo tenure .. it only takes on Google search to confirm and Nigeria will not go down that route again to import ..
Aside the new lines coming from BUA.. there is a new cement plant under construction in Kogi plus a planned site for a new cement in Ogun by Dangote.. the big players will continue to build plants to meet demands..
If you are pained ..produce 30bn and approach the govt for approval to build your own plant..
These thieves have been fleecing everybody and their gate man under the protection of Buhari, their kinsman. Now, it appears their monopoly was about to be broken by granting import permission to more merchants. That is what we are seeing.
The Chagoury's are about to enter the cement business. All they are doing now is to ward off likely competition.
Be deceiving yourself.. Nigeria can never grant license to import cement..with which dollars...did anybody tell you there is a supply problem?
If Chagoury enter cement business.. it can never be to import..
MrTuns: Entry Level / Fresh Graduate - Anything less than 200k is slavery Mid Level - Anything less than 350k, be in the job market and look for better offers Senior - If you are a senior person in your career, anything less than 500k is slavery. Rethink your options.
People are earning N2M and above monthly with less than 10 years experience. Its all about gaining skills, certifications and experience in the right companies.
The best industries to work are Banking, BIG 4, Oil and Gas and Telecommunications. Forget Tech, unless you have years of experience, entry level pay is peanuts.
Autos / Re: List Of Indigenous Automobile Manufacturers In Nigeria by pocom16: 2:03pm On Nov 18, 2023 
