Nigeria’s Automotive Sector Gains Momentum With 12 New Assembly Plants

Nigeria's Automotive Sector Gains Momentum With 12 New Assembly Plants
Innoson Motors, a Nigerian-owned domestic vehicle manufacturer

AFRICANGLOBE – The Nigerian government has issued licenses for the establishment of 12 new vehicle assembly plants in the country, paving way for further development of Nigeria’s automotive sector. This was confirmed by the Nigerian Automotive Design and Development Council (NADDC) in Abuja.

The Council said the benefitting companies include Toyota, Honda, General Appliances West Africa, Perfection Motors Company, and Richbon Nigeria, R.T. Briscoe Nigeria, Nigeria-China Manufacturing Company, Nigeria Sino Trucks, Coacharis Motors, DAG Motorcycle Industry Nigeria, Globe Motors Nigeria, Century Auto-Assembly Nigeria, and Concept Auto Centre.

This will bring the current total number of automobile assembly plants in the country to 45. According to the council, there were previously 15 assembly plants in the country before the National Automotive Industry Development Plan (NAIDP) was launched in 2014 and that only three were operational.

The Automotive Policy was introduced to push for the local production of vehicles as a means to boost direct investment in the country and reduce cost of vehicle. Since it was effected in 2014 it has recorded some positive results.

Kia’s factory launch in April 2015, is one of the most recent dividends of Nigeria’s automotive policy. The range of Innoson vehicles—an indigenous company founded by Nigerian industrialist is already enjoying patronage locally, unlike in the past when indigenous manufacturers were stifled by the lack of appreciation of their products. The policy also began taking its toll on car imports when the total number of vehicles discharged from Lagos ports had dropped to 8,000 units in January 2015, from 27,000 units in January 2014.

To increase the attractiveness of local production and assembling, Automakers with local assembly plants pay zero duty when importing Completely Knocked Down (CKD) parts, while the first type of semi-CKD attracts 5 per cent duty; and the second grade – 10 percent.


By: Felicia Omari Ochelle