So because it’s rebranded it's not good to buy. Wiv this mentality we can't grow as a nation
What does my comment have to do with growing Nigeria? It’s a fact that many of the companies listed above import cars from China and rebrand them for sale in Nigeria. I didn’t say the quality of Chinese cars are bad, I’m just stating the fact that there nothing indigenous about most of the cars.
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.
How Billionaire Mittal’s Brother Got a $500 Million Bailout in Nigeria Pramod Mittal’s firm won a settlement tied to a Soviet-era steel plant that has sucked up more than $7 billion in Nigerian public investment without producing any metal.
In this Article MOORGATE INDUSTR Private Company Have a confidential tip for our reporters? Get in Touch Before it’s here, it’s on the Bloomberg Terminal LEARN MORE By William Clowes 17 November 2023 at 05:05 GMT Billionaire Lakshmi Mittal’s younger brother is effectively getting a helping hand — and a possible way out of financial distress — from Nigerian taxpayers, after the country’s government agreed to pay his company almost $500 million to settle a contract dispute over a deal that a previous administration said was tarnished by fraud. Pramod Mittal, whose career in the steel industry has been less glittering than his better-known sibling — the tycoon behind the €20 billion ($21.2 billion) ArcelorMittal SA conglomerate —, has a string of abandoned factories and a trail of unpaid debts to his name. Five years ago, his Isle of Man-registered Global Steel Holdings Ltd., or GSH, was put into liquidation over $167 million owed to Moorgate Industries Ltd., a company spun off from one of the world’s biggest steel traders.
"This Beautiful Fantastic" - Cast & Crew Screening Pramod Mittal in London, in February 2016.Photographer: David M. Benett/Getty Images Europe As a UK court weighed Moorgate’s request to declare Pramod personally bankrupt three years ago, the London-based Indian national held out the prospect of a payout from the Nigerian state to clear his debt. The judge was unconvinced at the time, but the settlement subsequently reached with Nigeria last year now looks like the 67-year-old’s best route out of insolvency. Still, while payments from the Nigerian government have reached GSH’s liquidators, as of Oct. 4, Moorgate had yet to see any of those funds despite having asked for them, court documents show.
With Pramod’s bankruptcy winding its way through English court rooms, a new Nigerian president has taken office, and last month his steel minister said one of the administration’s top priorities is to finally fire up the furnaces of the massive plant at the heart of the younger Mittal’s $496 million compensation. The government has justified the agreement with a former unit of Pramod’s GSH, which was announced in September 2022, saying it frees the state to pursue its ambitions for the sprawling 24,000-hectare (92 square mile) site.
The settlement — representing about 1.5% of Nigeria’s foreign reserves — is just the latest twist in the saga of the vast Soviet-built factory complex begun 44 years ago. The project has sucked up more than $7 billion in public investment and has yet to produce any metal. The story of the Ajaokuta steel mill on the banks of the Niger River 190 kilometers south of the capital, Abuja, is often cited as emblematic of the corruption, poor governance and incompetence that bedevils the West African nation. The country’s most notorious white elephant still sparks passionate debate over whether it should be written off or revived.
“Ajaokuta has been a black hole that has gobbled up billions of dollars, enriching multiple generations of politicians and foreign enablers,” says Matthew Page, a former Nigeria expert for US intelligence agencies and now an associate fellow at London-based Chatham House. “This last failed reboot — and the giant price tag that came with it — is a preview of the next failed re-concessioning attempt. At this point, Ajaokuta’s dilapidated machinery is capable of doing only one thing: making public funds disappear.”
Nigeria’s Steel Promise Ajaokuta has yet to produce steel
Source: Bloomberg
Neither Pramod’s representatives nor the spokespeople for the newly elected President Bola Tinubu and Steel Minister Shuaibu Audu responded to requests for comment. Abubakar Malami, Nigeria’s attorney general from 2015 to earlier this year, on whose watch the settlement was reached, said last year that the administration of former President Muhammadu Buhari “rescued the steel industry from interminable and complex disputes as well as saving the taxpayer from humongous damages.”
Pramod’s Involvement Pramod entered into the Ajaokuta picture in 2004, when then President Olusegun Obasanjo awarded GSH a series of contracts, including an arrangement first to manage and later to buy the steel mill.
Shortly after GSH took over the plant, Solgas Energy Ltd., a small US company, sued it in Texas. Solgas claimed that GSH discussed becoming Solgas’ subcontractor on Ajaokuta before breaching a confidentiality accord and bribing Nigerian officials, including one of Obasanjo’s sons, to “steal the concession.” While the case was thrown out on jurisdictional grounds, in December 2008 a separate arbitration tribunal ordered Nigeria to pay Solgas $15.2 million in damages for the wrongful termination of the contract — while noting the US firm hadn’t provided evidence to support the corruption allegations.
By then, Umaru Yar’Adua had taken over as Nigeria’s president, and he canceled GSH’s contracts after a panel that his steel development minister set up said the concessions were rife with irregularities. GSH’s claim it had invested $200 million was “a ruse,” the inspectors said. Rather, the company had used its Nigerian assets to borrow more than $192 million from local banks — funds they “strongly” suspected had been dispatched abroad, they said.
The panel’s full report — never made public but seen by Bloomberg — said rescuing Ajaokuta was beyond the “financial, technical and experiential capabilities” of GSH, which instead had been “systematically cannibalizing, vandalizing and moving valuable equipment” out of the factory. GSH and its Nigerian unit initiated arbitration proceedings against the government and later entered mediation, which produced last year’s settlement.
The disused Ajaokuta Steel Complex in Ajaokuta, Nigeria, in 2018.Photographer: David Malingha Doya/Bloomberg Pramod had signed two earlier agreements with the Nigerian government – in 2014 and 2016 – that would have seen his firm retain the right to manage an idled state-owned iron ore mining company but receive no payout. “I threatened them with criminal proceedings for tax evasion, in addition to other criminal infractions that they had clearly committed,” Mohammed Adoke, a former attorney general who had reached the first of these accords, wrote in his memoir titled “Burden of Service.” “To amicably resolve the issue, I insisted that Global Steel should relinquish (Ajaokuta) for free without any form of compensation.”
Adoke’s successor, Malami, who was the attorney general when the half-a-billion-dollar settlement was struck, modified the terms of the deal to take back the mining firm and award a payment. Malami didn’t respond to a request for comment.
Moorgate’s Case Even before finalizing the Ajaokuta windfall, Pramod had suggested using the money to pay down the Moorgate debt. In June 2020, as Moorgate sought his bankruptcy, he told Judge Catherine Burton that GSH’s liquidators had failed to account for the “very real prospects of a payment” from Nigeria. He said his Abuja-registered subsidiary would settle the obligation to Moorgate “out of whatever money it receives from the mediation,” according to the decision issued by Burton, who — unpersuaded — ruled in favor of the creditor.
Pramod also tried another way to skirt bankruptcy — using an individual voluntary arrangement, or IVA. He proposed repaying less than £5 million out of £2.5 billion ($3.1 billion) — or 0.2% of what a handful of companies and individuals said they were owed by the businessman.
Moorgate countered that “friendly creditors” who approved this meager offer were either associated with Pramod or relying on loan agreements that were “not true or contemporaneous documents.” A UK judge revoked the IVA last November, expressing “serious doubts” about the authenticity of the paperwork. In the IVA, Pramod said he was worth £117,000, claiming he didn’t control GSH. The family’s London mansion is held through an offshore company whose directors were senior managers at GSH.
Contrary to Pramod’s argument, the court determined he controlled the British Virgin Islands-registered company that owned GSH through his influence over a family trust, with an Isle of Man judge similarly describing him as that firm’s “driving force.”
Pramod made other apparent attempts to distance himself from the group and its subsidiaries. Since April 2021, GSH’s Nigerian unit — the settlement’s beneficiary — has been owned by a Mauritian entity named Luminous Star Ltd., classified as defunct for a decade and with a director who was formerly a GSH employee. While Pramod ceased to be a director of the Nigerian firm in late 2020, his son sits on the board.
In January, Nigeria’s then Information Minister Lai Mohammed said the government had paid $446 million to GSH’s local unit in multiple instalments under the settlement. The law firm hired by the Nigerian subsidiary for the mediation made six transfers from these funds to GSH’s account, totaling £219 million ($272 million) between October 2022 and February 2023, according to reports filed by the company’s liquidators. The law firm, King & Spalding LLP, declined to comment on the rest of the money.
In December and again in March, Moorgate asked to be paid out of funds recovered by GSH’s liquidators, according to a court decision issued last month in the Isle of Man. The liquidators, who estimate that only £40 million is available for creditors once GSH’s potential tax liability and additional costs are taken into consideration, are yet to comply with the request, the judge said on Oct. 4, ruling that Moorgate is entitled to receive part-satisfaction of the debt. Moorgate and GSH’s liquidators declined to comment.
Meanwhile, in Nigeria, the attachment of the country’s leaders to the Ajaokuta plant shows no sign of abating, even though critics including the World Bank have called the facility obsolete. President Tinubu pledged during his election campaign to get the steel mill up and running. His predecessor’s government, which left office in May, congratulated itself not only for liberating Ajaokuta from Pramod’s legal claim but also securing it for a settlement significantly smaller than the $5.3 billion that GSH had apparently demanded.
Just last month, touting the potential of the complex to one day create half a million jobs, Vice President Kashim Shettima said the “Ajaokuta plant can be a game changer for the Nigerian nation.”
— With assistance from Misha Savic, Slav Okov, and Swansy Afonso
What does my comment have to do with growing Nigeria? It’s a fact that many of the companies listed above import cars from China and rebrand them for sale in Nigeria. I didn’t say the quality of Chinese cars are bad, I’m just stating the fact that there nothing indigenous about most of the cars.
That comment u made can demoralise someone who has interest in buying the car. On a second note make sure u get ur facts right before any statement. Your claim is completely wrong
