Auto

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

Published

4 years ago

August 19, 2022

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.

Related Topics:Auto assembly Featured NADDC NAMA

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Toyota moves to ease vehicle ownership amid economic challenges

Published

2 days ago

June 12, 2026

Trends Admin

Managing Director of Toyota Nigeria Limited, Mr. Kunle Ade-Ojo; Chairman of TNL, Chief Michael Ade.Ojo, and MD/CEO, AGL Motors Ltd, Alhaji AbdulAfeez Gabar Lado, at the presentation of the 2025 best customer award to AGL Motors in Lagos.

Toyota Nigeria unveils plans to ease vehicle ownership

As rising costs put car ownership beyond the reach of many Nigerians, Toyota Nigeria Limited says it is rolling out fresh measures to make buying and maintaining vehicles easier for customers.

Managing Director, Mr. Kunle Ade-Ojo, announced the plans at the company’s 2026 Awards and Customers’ Night in Lagos, where he reaffirmed Toyota’s commitment to expanding mobility solutions in the country.

A statement on Thursday quoted Ade-Ojo as saying Toyota Nigeria would continue to innovate and introduce strategies that would enable more Nigerians to own and maintain Toyota vehicles while enjoying quality after-sales support.

According to him, the company’s commitment goes beyond selling vehicles to ensuring customers enjoy a seamless ownership experience through a robust nationwide service network.

“We will continue to innovate, adapt and elevate our product offerings and service delivery. Our ambition remains clear: to sustain industry leadership while contributing meaningfully to Nigeria’s economic development as a responsible corporate citizen,” he said.

He added that the company’s future plans are aligned with Toyota’s global vision of enriching lives through mobility, with a strong focus on innovation, sustainability and value creation.

Auto

Zenith Bank tops awards list as Toyota Nigeria celebrates three decades of excellence (plus photos)

Published

6 days ago

June 7, 2026

Trends Admin

Zenith Bank tops awards list as Toyota Nigeria celebrates three decades of excellence (plus photos)

Zenith Bank Plc has emerged as the biggest winner at the 2026 Toyota Awards and Customers’ Night, clinching the coveted Evergreen Customer of the Year Award for the second consecutive year in recognition of its exceptional patronage of Toyota vehicles over the past five years.

The colourful event, held on Friday, May 5, 2026, at The Podium Event Centre in Lekki, Lagos, brought together an impressive gathering of customers, dealers, government officials, corporate partners, media practitioners and industry stakeholders to celebrate the achievements of Toyota Nigeria Limited (TNL) and strengthen the partnerships that have sustained its leadership in Nigeria’s automotive industry.

The annual awards ceremony serves as a platform to reward loyal customers, honour strategic partners and reinforce the company’s customer-first philosophy.

The highlight of the evening came when representatives of Zenith Bank were invited to the stage to receive the prestigious award for purchasing the highest number of Toyota vehicles from TNL dealerships in 2025.

The banking giant also secured the same honour last year after emerging as the customer with the highest cumulative vehicle purchases between 2020 and 2024.

In recognition of the feat, Chairman and founder of Toyota Nigeria Limited, Chief Michael Ade-Ojo, presented Zenith Bank with the keys to a brand-new Toyota Starlet Cross.

The competition in the Customer of the Year category was equally keen. AGL Motors emerged as the overall winner, while the Nigerian Army and Zenith Bank finished as first and second runners-up respectively. The winners received office equipment worth several millions of naira.

The 2026 edition of the awards carried special significance as Toyota Nigeria celebrated its 30th anniversary, marking three decades of operations since its establishment in 1996.

In keeping with its tradition of recognising contributors across its business ecosystem, Toyota Nigeria also honoured outstanding automotive journalists whose reports and analyses helped shape public understanding of developments in the industry.

Veteran motoring journalist, Theodore Opara of Vanguard, was named Journalist of the Year for his consistent coverage of the automotive sector and insightful reporting on industry trends and Toyota’s innovations.

Mike Ochonma of Transport World emerged as the runner-up, while Rasheed Bisiriyu of Newstrends was recognised as the second runner-up for their contributions to automotive journalism, particularly in the areas of vehicle technology, mobility solutions and market analysis.ĺ

Earlier in his keynote address, Managing Director of TNL, Kunle Ade-Ojo reflected on the company’s journey, describing the milestone as a testament to resilience, innovation and customer loyalty.

“Tonight is a moment of reflection, celebration and renewed commitment,” he said.

“For us at Toyota Nigeria, this annual gathering is more than a tradition. It is a deliberate expression of our enduring philosophy of putting the customer first. It provides a unique platform to honour the loyalty, trust and partnership that have defined our journey over the years.”

According to him, Toyota Nigeria has evolved from modest beginnings into one of the country’s most trusted automotive brands through a relentless focus on quality, reliability and service excellence.

“Since commencing operations in 1996, our journey has been defined by resilience, growth and transformation. Our progress over the past three decades has been anchored on one unwavering principle—creating value for our customers.

“Beyond delivering vehicles that meet diverse mobility needs, we have invested significantly in building a nationwide after-sales ecosystem designed to provide a seamless and premium ownership experience.”

Ade-Ojo assured customers and stakeholders that Toyota Nigeria would continue to innovate and improve its products and services despite prevailing economic challenges.

Several dealers and business partners used the occasion to commend Toyota Nigeria for its continuous investments in dealer development, training initiatives and workshop upgrades aimed at improving service delivery nationwide.

Ade-Ojo expressed gratitude to Toyota Nigeria’s extensive network of stakeholders, including dealers, customers, suppliers, consultants, financial institutions and employees.

“The journey of the past 30 years would not have been possible without the unwavering support and contributions of our stakeholders,” he said.

The managing director also acknowledged the support of Toyota Nigeria’s principal partner, Toyota Motor Corporation, as well as the company’s board of directors led by Chief Ade.Ojo.

He further assured customers that Toyota Nigeria would continue to introduce customer-friendly initiatives designed to make vehicle ownership more accessible despite economic headwinds.

“Despite the monumental challenges in the economy, Toyota Nigeria will continue to devise means that will enable our customers to enjoy their preferred auto brand—Toyota. We will continue to initiate customer-friendly business improvement strategies aimed at making our vehicles more affordable.”

Auto

Toyota Motor Show Ignites Youth Interest in Future Mobility

Published

1 week ago

June 5, 2026

Trends Admin

L-R: TV personality/brand influencer, Somadina Anyama (Soma); Head, Service at the Toyota Nigeria Limited, Mr Sylvester Enwere; actor/social advocate, Kate Henshaw, and Head, Dealer Development and Special Duties at TNL, Mr. Henry Ojuoko, on the Day 2 of the Toyota Motor Show in Lekki Lagos.

Toyota Motor Show Ignites Youth Interest in Future Mobility

Toyota Nigeria Limited turned the spotlight on the next generation of tech leaders and automotive enthusiasts at the 2026 Toyota Motor Show.

Held at The Podium in Lekki, Lagos, the four-day exhibition dedicated its second day entirely to fueling youth innovation, featuring high-stakes academic battles, technical workshops, and star-studded panels.

The youth-focused itinerary kicked off with an intensive Technical Workshop led by Toyota Nigeria’s Master Technician and Key Instructor, Saheed Shorinola.

The masterclass set the stage for a thrilling day of intellectual rivalry, where students and young professionals put their creativity and analytical skills to the test.

Brilliant Minds Battle for N1.550 million in Cash Prizes.

The atmosphere electrified as two powerhouse student teams clashed in a debate centred on the future of mobility and technological innovation.

• The Debate Champions: Team A—comprising Robinson Goodness, Esabu Blessing, and Igbayisemore Tony—clinched victory after a fiercely contested argument, walking away with the N600,000 grand prize.

The Runners-Up: Team B, featuring Akinware Breakthrough, Yusuf Rahimat, and Dawn Ijaware, put up a stellar defense to secure the N300,000 runner-up prize.

Intellectual fireworks continued during a high-speed automotive quiz. After multiple elimination rounds testing deep knowledge of vehicle mechanics and Toyota history, the final three emerged triumphant:

• 1st Place (N250,000): Feyisetan Tolase Emmanuel

• 2nd Place (N150,000): Ayorinde Bolarinwa

• 3rd Place (N100,000): Shobowale Oladimeji.

. Mario Chukwuma, Aduloju Oluwatomiwa and Abdulsemiu Ayodeji came 4th, 5th and 6th respectively, going home with N50,000 each as event reward.

Star-Studded Judging and Corporate Vision

The brilliant performances drew high praise from the judges’ bench, which was chaired by award-winning actress and social advocate Kate Henshaw.

“The future remains bright when young people are encouraged to embrace knowledge and innovation,” Henshaw remarked, praising the contestants’ confidence and analytical depth.

Also on the panel were TV personality and influencer Somadina ‘Soma’ Anyama, Toyota Nigeria’s Head of Service Sylvester Enwere, and Head of Dealer Development and Special Projects, Henry Ojuoko.

“Toyota’s mission goes beyond selling vehicles,” said Ojuoko. “It is about inspiring curiosity and encouraging young Nigerians to explore massive opportunities in technology, mobility, and innovation.”

Cars, Comedy, and Beats: A 4-Day Spectacle

The Motor Show, which ran from June 2 to June 4 and June 6, was described as a masterclass in brand engagement.

• On the Track: Visitors enjoyed exclusive test drives of flagship models, including the Camry, RAV4, Land Cruiser, Corolla, and Hilux, alongside receiving free vehicle diagnostic services.
• In the Crowds: Popular comedian and content creator Mama Deola took over day 3, bringing her signature humour to the showroom floor while highlighting vehicle features for fans.
• The Grand Finale: The exhibition wrapped up on Saturday with an explosive DJ/music festival of sort, hosted by celebrity On-Air-Personality Dotun. The highlight was the “DJ Bump Off”—a heated wheels-of-steel battle featuring four top DJs, where the delectable female DJ Medusa, out-mixed the competition to take home the crown.

By blending education, high-stakes competition, and top-tier entertainment, Toyota Nigeria Limited has once again proved that the future of mobility is not just about the machines—it’s about the people driving the conversation.