1.4% of 1m imported vehicles are brand new – Manufacturers

The Nigeria Auto Manufacturers Association (NAMA) has disclosed that Nigeria imports 1m vehicles annually. According to the manufacturers, out of the 1m vehicles, only about 14,000 representing 1.4 per cent are brand new. Representative of NAMA, Dr. Harpreet Singh spoke in Lagos at the second edition of the Nigeria Auto Industry Summit (NAISU), organised by […]

The Nigeria Auto Manufacturers Association (NAMA) has disclosed that Nigeria imports 1m vehicles annually.

According to the manufacturers, out of the 1m vehicles, only about 14,000 representing 1.4 per cent are brand new.

Representative of NAMA, Dr. Harpreet Singh spoke in Lagos at the second edition of the Nigeria Auto Industry Summit (NAISU), organised by the Nigeria Auto Journalists Association (NAJA) with the theme: “Nigeria First: Local Content as Catalyst for Automotive Economy.”

The remarks by NAMA highlight the age-long industry challenge where Tokunbo (fairly used vehicles) have taken over the automotive market.  

Singh regretted that while Nigeria had the capacity to develop its automotive industry given the huge market, the country is lagging behind due to absence of policy.

He said: “We don’t need to reinvent the wheel; we have an overload of capacity in this country. What is required is policy. We import a million units per year, not up to 14,000 of them are brand new vehicles.

“Lesser are made in Nigeria. We have the potential to create jobs for our youths. It pains me. Because there is no job, they go into other activities. If we create jobs in the North, we give them a sense of progress.”

He assured that automotive manufacturers would continue to advocate backward integration.

He said, “NAMA stands for backward integration, from fully assembled vehicles to manufacturing, built in Nigeria and made in Nigeria. Today we are the backbone of defence logistics. 400 trucks churned out in a month. We are supplying defence.

“In NAMA, our belief is backward integration and we strive to continue to do that. We bring all the automotive assemblers and manufacturers together. It is something that has to be done and has to be done right now. Nigeria is future ready for the automobile revolution.”

NADDC DG Urges Collective Action For Auto Industry Growth

Director-General of the National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin, called for a unified push towards the development of local content in Nigeria’s automotive sector.

Osanipin, who was represented at the occasion by the Deputy Director, NADDC, Felicia Oyebolu, tasked stakeholders to take advantage of the First Nigeria policy to create jobs, enhance value retention and reduce capital flight.

He identified local content development as the engine that would drive a transformative shift in Nigeria’s automotive landscape.

He further emphasised its importance in five key areas – economic diversification and job creation, capital retention, technology transfer, supply chain resilience, and improved product innovation.

He said: “We must collectively address these challenges. Let us invest in local capabilities, champion innovation, and advocate for supportive policies.”

Also, the African Association of Automotive Manufacturers (AAAM) in its contribution, stressed the need for Nigeria to legalize its automotive policy to provide the foundation for sustainable local manufacturing, job creation and boost investor’s confidence.

Victoria Backhaus-Jerling, Chief Executive Officer, AAAM, in her virtual presentation at the summit, maintained that without it, the sector would remain vulnerable to unchecked used imports, while the country also risked missing out on the opportunities industrialisation could provide.