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Auto assemblers blame FG as more government-approved vehicle plants go down

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Stakeholders are worried that majority of over 60 automobile assembly plants licensed by the Federal Government over a period of nine years since the introduction of a new auto policy in Nigeria have been forced to close shop.

Precisely, Deputy Managing Director of CFAO Motors, Mr Kunle Jaiyesimi, said recently that only six of the registered auto assemblers are still running, working haphazardly.

Indeed, he said his company, CFAO Motors, which invested heavily in setting up a world-class Mitsubishi assembly plant in Lagos to churn out the brand buses and trucks had today converted the edifice into after-sale service centre.

The hope was high that Nigeria was on the path of total transformation in 2013 when the auto policy was introduced under the Goodluck Jonathan administration. The target was that the country was about to become the hub of West and East African auto industry producing new vehicles not only for Nigeria’s teeming population and high need to supplying to all the West and East African countries.

Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said ahead of 2020 Argungu fishing festival and motor rally has that following the launch of the Nigeria Automotive Industry Development Plan ( NAIDP) in 2013, about 62 companies had been registered to assemble vehicles at both SKD and CKD levels, with a total installed capacity of 423,790 units.

But that enthusiasm, according to automakers, has thawed away and replaced with frustration and regrets.

Even Adeniyi gave the running plants could only boast of actual assemblage of 10, 343 units, a far cry from the target of 400,000 units annually.

Executive Director, Nigeria Automotive Manufacturers Association, Remi Olaofe, speaking in Abuja at a recent Auto CEOs Forum, said there was no way the local auto assemblers could break even without any serious support and patronage from the government.

“Nigerian auto operators are doing their best but they are not being encouraged at all. No single tyre is being manufacturer in the country since the exit of Dunlop and Michellin. How do we bring them back? What do we tell them? Nobody is in business to make losses. I do business to make money, not on sentiment.

“Many have invested billions in this auto business and we are not doing anything to support and keep them in business.”

Olaofe accused the Nigeria Customs Service of being “a pain in the neck of this business,” adding that they had practically ruined the business.

“Look at all the auto assembly lines of the plants in the country, they are virtually idle. People are allowed to cut corners and play the trick of winners take all and many are shut out. Nigeria ultimately loses. We don’t have correct industry data because of unhealthy rivalry in the business,” he said.

He also said, “The NADDC will not allow NAMA to function because NADDC is deriving pleasure in assemblers coming directly to it for aid. The Ministry of Finance will not allow NAMA to work because it wants operators to come to them individually with their problems so they could be ‘appreciated’.

“Look at Rwanda, they have overtaken us. What is the population of Ghana? It is now the toast of auto manufacturers and allied products’ investors. Every single auto assembler now is on its way to Ghana. “There is no need lying to one another. If we must develop the nation’s auto industry, we should do so genuinely.”

Chief Executive Officer, Nord Automobiles Limited, Oluwatobi Ajayi, maintained that the nation’s approved plants had the capacity to produce sufficient number of vehicles to cater for its immediate need only if there would be continuous patronage, duty rebate and tax holiday.

For instance, he said his assembly plant currently producing five vehicles per day could increase the number to 25 vehicles with the right support and raise it further to 50 per day with two shifts of operation.

The operators at the Abuja forum accused the Federal Government of failing to sign the enabling auto bill into law to support the business.

They also claimed that the Finance Act of 2020 introduced by the FG that reduced import duty on fully built vehicles to the same rate as Semi-Knocked Down components made it difficult for local assemblers to compete with FBU importers/dealers.

Jaiyesimi said, “There is no way we can compete with fully built vehicles that are coming into the country. Before, the import duty on FBU truck was 25% and suddenly they it was dropped to 10%, the same rate for SKD components of truck.”

He also berated some policymakers in government of jumping out of the country to hold crucial meetings with vehicle manufacturers without discussing with Nigeria’s representatives of those foreign companies.

He said, “We should not be thinking about estacode (travel allowance) in most cases. We should look at how things can work in this country.

“What is the fate of the auto policy now? When this initiative started in 2014, some of us raised concern then that it is not enough for some people to just wake up and put up a position paper about the industry without consulting widely the industry players and stakeholders.”

The current NADDC Director-General, Mr Jelani Aliyu, says the bill auto policy is undergoing some review and he is optimistic that it will be signed into law before the end of the year.

Since 2019, Aliyu had said the Automotive Industry Development Bill passed by the eighth National Assembly was awaiting the President’s.

Aliyu in an interview with the Punch then gave the names of nine firms assembling vehicles in the country as Peugeot Automobile Nigeria, Nissan Motors, Honda Motors, Innoson Vehicle Manufacturing Company, Hyundai Motor Company, Ford Motor Company, GIC Motor Companies Ltd, JAC Motors and Kia Motors.

Nissan, Honda and Hyundai are operating under Stallion Autos which took over the old VON plant in Lagos.

President Muhammadu Buhari failed to give assent to the bill when it was sent to him at the beginning of this year due to some reported discrepancies and had to send it back to the National Assembly for a rework.

A few weeks ago, Aliyu said a revised national auto legislation that would fully guarantee investments in vehicle assembly plants, leading to a halt in importation of new and used automobiles would be enacted.

He told journalists in Sokoto that the NADDC was in talks with companies such as Toyota and Volkswagen to come and directly set up their production plants in Nigeria.

“The council is working to effectively implement an automotive policy agenda, with a view to bringing these companies back to Nigeria. They want to have a guarantee that regardless of whichever government is in power their investments will be protected,” Aliyu said.

But a former acting DG of the NADDC, Mr Luqman Mamudu, said there was nothing wrong with the auto policy, adding that adequate consultations and visits to countries for model examples were made with stakeholders when the policy document was being put together.

He however accused some self-serving auto operators of fielding the policymakers under the Muhammadu Buhari administration with lies about the policy, leading to the back-and-forth approach on the President’s assent for the  bill.

The Comptroller General of the Nigeria Customs Service, Col. Hameed Ali (retd.), represented at the CEOs Forum by Controller Musa Mba, said the agency only implemented the duty as directed by the finance ministry and the National Automotive Design and Development Council for industry with regard to vehicle imports.

He stressed the need for the genuine operators to be united and keep engaging the finance ministry on the duty issue.

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EXEED Sets Sights on Nigeria’s Luxury Car Market, Showcases Technology, Design Vision

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EXEED Sets Sight on Nigeria’s Luxury Car Market, Showcases Technology, Design Vision

 

Versat Automobile Limited, the Nigerian representative of EXEED, is stepping up efforts to introduce the premium automotive brand to the country, offering prospective customers a closer look at its technology, design philosophy and vision for the future of mobility.

The move signals a new phase in EXEED’s Nigerian market entry, as the company seeks to establish its identity in an increasingly competitive premium vehicle segment where technology, performance, comfort and ownership experience are becoming important considerations for buyers.

Following its initial introduction to Nigeria in August, Versat Automobile is advancing the brand’s pre-launch activities by highlighting the philosophy and engineering thinking behind EXEED, a premium automotive marque within the Chery Automobile family.

Drawing on Chery’s extensive investment in automotive research and development, EXEED’s technology proposition covers vehicle architecture, powertrain engineering, intelligent cabin systems and connected driving technology.

However, the brand says its approach to innovation goes beyond simply adding more technological features to vehicles. Rather, it focuses on integrating intelligence, convenience, connectivity and performance to improve the overall driving experience and respond to the expectations of modern motorists.

Design is another major pillar of EXEED’s identity, with its vehicles combining distinctive exterior styling, lighting, detailing and cabin architecture with functionality and everyday usability.

The company’s approach reflects an evolving definition of premium mobility, where luxury is no longer determined solely by a vehicle’s appearance but also by how it feels, functions and interacts with occupants.

At the heart of the brand is its philosophy, Born for More, which is reinforced by what it describes as its Spirit of Exploration.

The philosophy is built around challenging conventions, looking beyond familiar boundaries and pursuing new possibilities. It targets customers who seek experiences beyond the ordinary and view mobility as more than simply moving from one destination to another.

Versat Automobile believes this positioning could resonate with Nigeria’s evolving premium automotive market, where buyers are increasingly considering technology, contemporary design, performance, comfort and the overall ownership experience when making purchasing decisions.

Christopher Irumudomon, General Manager, Sales, Versat Automobile Limited, said the introduction of EXEED was about presenting Nigerians with a different perspective on premium mobility rather than merely adding another vehicle brand to the market.

“The introduction of EXEED is about more than bringing another automotive brand to Nigeria. It is about introducing a different perspective on premium mobility, one that brings together technology, design, performance and the freedom to explore.

“EXEED has a distinctive philosophy and a clear vision for what it wants to represent, and we are excited to give Nigerians a closer look at the brand and what it has to offer,” he said.

As part of its broader engagement with the global technology and mobility ecosystem, the Versat team is also scheduled to participate in the International User Summit in China in October.

The visit is expected to provide opportunities for further engagement with Aimoga, a high-end robotics brand, highlighting the growing intersection between technological innovation, robotics and future mobility.

The engagement underscores the broader technological direction that EXEED seeks to associate with its premium brand identity.

Versat Automobile said further details about EXEED, including its products, technology and design philosophy, would be unveiled as the Nigerian pre-launch programme progresses.

Established in 2024, Versat Automobile Limited made its Nigerian market debut in 2026 with C&C Trucks and is building its portfolio around globally positioned automotive brands.

The company says its operations are guided by a commitment to performance, durability, quality, reliability and customer support, with EXEED representing its entry into the premium passenger vehicle segment.

For Nigeria’s automotive market, the forthcoming arrival of EXEED introduces another contender into the premium mobility conversation, with its eventual success likely to depend not only on the appeal of its technology and design but also on how effectively its Nigerian representative delivers on customer expectations.

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Omoda, Jaecoo bet on warranty, after-sales support to win Nigerian car buyers

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Omoda, Jaecoo bet on warranty, after-sales support to win Nigerian car buyers

 

Omoda and Jaecoo are stepping up investment in warranty protection, spare-parts distribution and after-sales services as the emerging automotive brands seek to strengthen customer confidence and establish a lasting presence in increasingly competitive global markets.

The strategy is particularly relevant to Nigeria, where concerns about spare-parts availability, maintenance costs, technical expertise and the reliability of after-sales support often influence decisions when purchasing new vehicles.

Beyond attractive designs, advanced technology and vehicle performance, motorists increasingly want assurances that their investments will remain protected long after driving their cars out of showrooms.

Recognising this changing customer expectation, Omoda and Jaecoo are expanding their international after-sales infrastructure and warranty programmes to improve the ownership experience and address some of the industry’s longstanding concerns.

In the United Kingdom, vehicles from the two brands come with a seven-year or 100,000-mile warranty, while batteries in electrified models enjoy eight-year coverage.

Although warranty conditions differ across markets, the programme underscores the brands’ emphasis on long-term ownership support and customer assurance.

The companies are also advancing their Super Hybrid System, which combines petrol and electric power to deliver improved fuel efficiency while retaining the convenience of conventional refuelling.

The technology is designed to address a major concern among motorists considering electrified vehicles, particularly those who want the benefits of electric mobility without depending entirely on charging infrastructure.

The Jaecoo J7 PHEV has already attracted considerable attention in the UK market, emerging as Britain’s best-selling new SUV in September.

It also secured a Guinness World Record for the lowest fuel consumption recorded by a plug-in hybrid production SUV during the UK Three Peaks Challenge.

Similarly, the flagship Jaecoo J8 combines 428 horsepower with all-wheel-drive capability and an electric-only driving range of more than 130 kilometres.

In Indonesia, a Jaecoo vehicle also secured a Guinness World Record after covering a verified distance of 1,660 kilometres on a single tank of fuel and battery charge, further highlighting the efficiency potential of the brand’s hybrid technology.

Beyond product development and performance achievements, the companies are strengthening the supply chain that supports vehicle ownership.

A major step in this direction was the opening of a 12,000-square-metre spare-parts distribution centre in Dubai’s Jebel Ali Free Zone in December 2024.

The facility stocks more than 20,000 different components to support parts distribution and improve service delivery.

The company has also indicated plans to establish similar facilities across different continents, with expansion already underway in South Africa.

For Nigeria, where the cost and availability of genuine spare parts can significantly affect vehicle ownership expenses, such investments could have important implications.

A dependable distribution network would help reduce the challenges associated with sourcing replacement components, while effective warranty administration and access to trained technicians could improve customer satisfaction and strengthen confidence in the brands.

As competition intensifies in Nigeria’s automotive market, the ability to provide reliable after-sales support could become just as important as introducing technologically advanced vehicles at competitive prices.

For Omoda and Jaecoo, the challenge will be to translate their growing international infrastructure and warranty commitments into accessible, consistent and responsive services for Nigerian customers.

Ultimately, winning the confidence of Nigerian motorists will require more than impressive vehicles and international performance records. It will depend on the brands’ ability to support customers throughout the entire ownership journey, from the first showroom visit to routine servicing and eventual replacement of parts.

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Why Toyota RAV4 Remains Attractive Choice for Nigeria’s SUV Buyers

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Why Toyota RAV4 Remains Attractive Choice for Nigeria’s SUV Buyers

 

As Nigerian motorists increasingly look for vehicles that deliver comfort, dependable performance, fuel economy and versatility, the Toyota RAV4 continues to offer an appealing proposition in the country’s competitive sport utility vehicle market.

Combining a distinctive exterior design with a thoughtfully crafted interior, practical luggage accommodation and performance engineered for everyday driving, the RAV4 is designed to meet the expectations of individuals and families seeking a vehicle that balances functionality with driving pleasure.

Toyota (Nigeria) Limited (TNL) presents the RAV4 as an SUV that combines refined engineering, comfort and practicality, making it a consideration for motorists navigating the country’s diverse driving conditions.

Comfort and convenience for everyday motoring

One of the RAV4’s major attractions is its emphasis on passenger comfort and convenience.

According to Toyota Nigeria Limited, the vehicle features an automatic air-conditioning system with independent temperature controls for the left and right sides of the cabin. This enables occupants to enjoy a more comfortable interior environment, particularly during Nigeria’s hot weather.

The steering wheel is equipped with conveniently positioned audio control switches, allowing drivers to operate the entertainment system without taking their hands away from the steering wheel.

The interior design also prioritises passenger accommodation, providing generous seating space and flexibility for different transportation needs.

For motorists who regularly travel with family members or require additional luggage capacity, the rear seats can be folded to create more room for carrying larger items.

This practical arrangement makes the RAV4 suitable for everyday commuting, family outings, shopping trips and longer journeys.

Performance that balances acceleration and fuel economy

Performance is another important consideration for Nigerian motorists, particularly those who combine daily urban commuting with occasional interstate journeys.

Toyota Nigeria Limited describes the RAV4’s engine as delivering excellent acceleration from low speeds, while maintaining fuel economy, clean emissions and quiet operation.

This combination is particularly relevant in Nigerian cities, where motorists frequently encounter stop-and-go traffic, congested roads and varying driving conditions.

The emphasis on responsive acceleration and quieter operation also contributes to a more comfortable driving experience.

Fuel economy remains an important consideration for prospective vehicle owners, especially in a market where the cost of running and maintaining a vehicle influences purchasing decisions.

Toyota notes that fuel consumption varies according to fuel quality, environmental conditions and individual driving habits.

## Designed with practicality in mind

Beyond its performance and comfort, the RAV4 offers the versatility expected of a modern SUV.

Its flexible luggage arrangement allows owners to accommodate different cargo requirements by folding the rear seats when additional loading space is needed.

This feature is particularly useful for families, business professionals and motorists who require a vehicle capable of handling both passenger transportation and occasional cargo duties.

The SUV’s interior layout also reflects Toyota’s attention to functional design, with controls positioned to make everyday operation more convenient.

The advantage of buying through Toyota Nigeria Limited

For prospective buyers, the decision to purchase an SUV should go beyond the vehicle’s appearance, performance and convenience features.

The availability of genuine spare parts, professional maintenance services and manufacturer-backed warranty protection is equally important.

Toyota Nigeria operates through seven accredited dealers: Elizade Nigeria Limited, R.T. Briscoe (Nig.) Plc, Omoregie Motors, Germaine Auto Centre, Kojo Motors, Mandilas Motors and Metropolitan Motors Limited.

According to the company, vehicles purchased through its accredited dealers enjoy a three-year or 100,000-kilometre warranty, whichever comes first.

TNL also explains that its vehicles are selected and supplied with specifications approved for the Nigerian operating environment.

An important component of this approach is the Severe User Package, which includes reinforced suspension, heavy-duty shock absorbers and engine under-guards, among other features designed to help vehicles withstand demanding road and terrain conditions.

This consideration is particularly relevant in Nigeria, where road conditions can vary considerably between urban centres, highways and rural communities.

The company’s accredited dealers also provide access to genuine Toyota spare parts and authorised servicing facilities.

Toyota further states that genuine spare parts purchased through its accredited dealers carry a 12-month or 20,000-kilometre warranty, subject to applicable terms and conditions.

A practical option for Nigerian motorists

For Nigerian buyers considering an SUV, the Toyota RAV4 presents a combination of passenger comfort, flexible luggage accommodation, responsive engine performance and practical everyday features.

Its automatic climate control, steering-mounted audio switches and adaptable rear seating arrangement address important aspects of everyday vehicle ownership.

Combined with Toyota Nigeria’s emphasis on specifications suitable for Nigerian conditions, warranty protection and access to genuine spare parts, the RAV4 offers prospective customers additional considerations beyond the initial purchase.

For individuals and families seeking an SUV that combines everyday practicality with the established Toyota ownership proposition, the RAV4 deserves consideration.

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