Nigeria Can Produce 500,000 Vehicles Annually, Says NADDC
Nigeria has the capacity to produce between 450,000 and 500,000 vehicles annually, exceeding the estimated domestic demand of between 350,000 and 450,000 vehicles, the National Automotive Design and Development Council (NADDC) has said.
The Director-General of NADDC, Joseph Osanipin, disclosed this on Tuesday at the opening of the 26th Abuja International Motor Fair, stressing that Nigeria could meet its vehicle needs through local production if the necessary support and enabling environment were provided.
Osanipin identified access to finance, supportive legislation and the development of local vehicle components as critical factors needed to unlock the country’s automotive manufacturing potential.
According to him, Nigeria currently has sufficient installed capacity to meet domestic demand, but manufacturers require government support and appropriate policies to maximise production.
“As of today, we are between 450,000 and 500,000 installed capacity for automobile in Nigeria. Today also, Nigeria buys between 350,000 to 450,000 vehicles annually,” he said.
He explained that the Federal Government had released implementation guidelines for the Nigeria First Policy in the automotive sector to encourage the production and patronage of locally assembled vehicles.
The NADDC boss also disclosed that the council was working on an automotive bill and a component development programme aimed at strengthening domestic manufacturing and reducing dependence on imported vehicle parts.
On vehicle financing, Osanipin said the council had partnered with the Nigerian Consumer Credit Corporation (CREDICORP) to develop guidelines that would improve access to consumer credit for vehicle purchases.
He noted that more than 50 per cent of CREDICORP’s disbursements so far had gone to the automotive sector, reflecting growing support for local vehicle manufacturing.
Osanipin further revealed that most vehicles displayed at the motor fair were locally assembled, adding that manufacturers had the capacity to customise vehicles to meet the operational needs of government agencies.
Addressing concerns about maintenance and after-sales services, he said NADDC had reached an agreement with local assemblers to establish service workshops nationwide, including through partnerships with existing workshops.
He added that the council had trained approximately 40,000 automotive technicians to strengthen vehicle maintenance and after-sales support across the country.
Meanwhile, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, described the automotive sector as a priority area under the Tinubu administration’s industrialisation agenda.
She said the Federal Government was supporting the industry through legislation, access to credit, regulatory reforms and measures to tackle vehicle smuggling.
Oduwole also announced that Nigeria would host an automotive exhibition during the 2027 Intra-African Trade Fair scheduled to take place in Lagos from November 5 to 11.
According to her, the exhibition would provide opportunities for vehicle manufacturers and component producers to showcase their products, attract investments and establish business connections across African markets.
She stressed the need for Nigeria to secure a stronger position in Africa’s automotive value chain under the African Continental Free Trade Area (AfCFTA).
Nigeria’s drive to expand local vehicle production has also involved efforts to develop domestic spare-parts manufacturing, improve access to vehicle financing and strengthen government patronage of locally assembled automobiles.
In December 2024, NADDC and CREDICORP launched a N20 billion consumer credit fund to support the purchase of locally assembled cars, motorcycles and tricycles, while the council has continued to pursue initiatives aimed at reducing the country’s dependence on imported automotive components.
