FG Reaffirms Support For Local Vehicle Assembly, Manufacturing

The Federal Government has reiterated its commitment to strengthening Nigeria’s automotive industry through local vehicle assembly and manufacturing, assuring Nigerians of improved access to quality vehicles under its Nigeria First initiative.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, gave the assurance at the 26th Abuja International Motor Fair, organised in partnership with BKG Exhibition Limited.

Oduwole disclosed that Nigerians purchase between 450,000 and 500,000 vehicles annually, describing the high demand as a significant opportunity to expand local automotive production and attract investment into the sector.

She said the automotive industry remained a priority for President Bola Tinubu’s administration, adding that the government would continue to create an enabling environment for investors and encourage local manufacturers to tap into the African market and existing continental value chains.

According to her, strengthening domestic vehicle production would position Nigeria as a major player in Africa’s automotive industry while supporting the objectives of the Nigeria First initiative.

Also speaking, the Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Joseph Osanipin, said Nigeria had sufficient installed capacity to meet its annual vehicle demand if the necessary conditions were provided.

Osanipin explained that the country currently had an installed automotive production capacity of between 450,000 and 500,000 vehicles annually, although actual output remained considerably below the available capacity.

He identified improved access to finance and the introduction of consumer credit schemes as critical measures required to stimulate vehicle production, increase sales and make locally assembled vehicles more accessible to Nigerians.

The NADDC director-general further disclosed that the council had trained approximately 14,000 automotive technicians to strengthen after-sales services and provide the technical support needed for vehicles assembled in the country.

He said developing local technical expertise alongside increased production capacity would help strengthen the automotive value chain and improve confidence in Nigeria’s locally assembled vehicles.