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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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Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

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Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

 

The Federal Government has declared that Nigeria’s transition to compressed natural gas (CNG) and electric vehicles (EVs) is no longer an environmental ambition but a critical economic strategy to slash transportation costs, strengthen energy security, create jobs and unlock new investments across the automotive value chain.

Making the declaration at the 3rd Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA) in Lagos, the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, said clean mobility had become a central pillar of President Bola Ahmed Tinubu’s transport and energy reforms.

Delivering a keynote address titled, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” Ahmed said the Presidential Initiative was established to coordinate Nigeria’s transition to cleaner transportation by building a sustainable ecosystem for CNG and electric mobility.

He explained that the Initiative’s mandate extended beyond promoting alternative fuels to attracting investments, expanding refuelling and charging infrastructure, supporting vehicle conversion, strengthening local manufacturing, developing technical skills and boosting consumer confidence.

According to him, the programme was conceived following the removal of fuel subsidy to provide Nigerians with a practical and affordable transport alternative by leveraging the country’s abundant natural gas resources.

“Our focus from the beginning has been to build the foundation of a sustainable industry rather than pursue isolated interventions,” Ahmed said, noting that Pi-CNG & EV has worked closely with regulators, investors, vehicle manufacturers, conversion firms, financial institutions, development partners, transport unions and state governments.

Reviewing the Initiative’s achievements over the past two years, he said Nigeria’s CNG ecosystem has expanded rapidly, with more certified conversion centres established across the country and refuelling infrastructure growing through public and private sector investments.

He added that vehicle conversions have continued to rise as commercial transport operators and private motorists increasingly embrace the lower operating costs of CNG, while thousands of technicians have been trained to ensure safe and professional conversion services nationwide.

Ahmed also disclosed that strategic partnerships with financial institutions, energy companies, vehicle manufacturers and state governments are helping to improve access to financing, stimulate infrastructure development and accelerate the adoption of clean mobility solutions.

To strengthen safety and regulatory compliance, he announced the introduction of the Nigeria Gas Vehicle Monitoring System, which he said would enhance transparency, improve regulatory oversight and build public confidence in the conversion industry.

While acknowledging the remarkable progress recorded in CNG adoption, Ahmed stressed that the Initiative remains equally committed to advancing electric mobility, saying Nigeria’s long-term transport future would be powered by multiple clean-energy technologies.

He revealed that government is engaging manufacturers, investors and development partners on electric vehicle deployment, charging infrastructure, local assembly and policy reforms aimed at accelerating market growth.

Despite the progress, Ahmed identified infrastructure expansion, consumer financing, local manufacturing, technical capacity development, research, innovation and standardisation as key areas requiring sustained investment and collaboration.

He urged government agencies, investors, manufacturers, transport operators, financial institutions, development partners and the media to work together to overcome these challenges and build a sustainable clean mobility ecosystem.

Describing the media as a strategic partner, Ahmed called on members of the Nigeria Auto Journalists Association to intensify public education on the economic, environmental and technological benefits of clean mobility.

“The transition to clean mobility is as much an information challenge as it is an infrastructure challenge. Public understanding influences public acceptance, while market confidence is built on accurate, timely and responsible information,” he said.

He pledged deeper engagement with journalists through regular technical briefings, industry dialogues and improved access to credible data to combat misinformation and promote informed public discourse.

Ahmed said Pi-CNG & EV would continue expanding CNG infrastructure nationwide, strengthen the regulatory framework, support local manufacturing and vehicle conversion capacity, deepen financing partnerships and collaborate with stakeholders to build a commercially viable clean mobility industry.

According to him, the true measure of the Initiative’s success will not be the number of conversion centres or refuelling stations established, but its ability to reduce transport costs, improve energy security, generate employment, stimulate industrial growth and improve the quality of life of Nigerians.

He commended NAJA for providing a platform for robust industry dialogue, saying stronger collaboration among government, industry players and the media would be essential to accelerating Nigeria’s clean mobility transition.

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Côte d’Ivoire woos Nigerian auto investors to regional mobility expo

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From left Mr. Akin Akinbola, MD/CEO of Promosalons Nigeria; Dr. Kaslime Kouassi, Director of Tourism who represented the Ivorian Ambassador to Nigeria His Excellency Ambassador Kalilou TRAORE; and Mr. Luc AZILINON, President of Interlinks Auto and MIWA Africa.

Côte d’Ivoire woos Nigerian auto investors to regional mobility expo

  • 150 global brands to storm Abidjan 

Côte d’Ivoire is making a bold bid to become West Africa’s automotive and mobility hub with the launch of EQUIP AUTO Côte d’Ivoire, an international trade exhibition expected to attract more than 150 exhibitors and brands from across Europe, Asia and Africa in a move aimed at deepening regional trade and cross-border investment.

The maiden edition of the exhibition will hold from November 26 to 28, 2026, at the Abidjan Exhibition Centre, bringing together about 10,000 industry professionals, investors, policymakers and members of the public from across the automotive value chain.

Speaking at a press conference in Lagos on Wednesday, President of Interlinks Auto and MIWA AFRICA SARL, Mr. Luc Azilinon, described the event as a major milestone in expanding the globally recognised EQUIP AUTO brand into sub-Saharan Africa.

The briefing, held at the Radisson Blu Hotel, Victoria Island, was convened by the Managing Director/Chief Executive Officer of Promosalons Nigeria, Cameroon and Gabon, Mr. Akin Akinbola, whose organisation represents the organisers of EQUIP AUTO Côte d’Ivoire in Nigeria and Cameroon.

According to Azilinon, the exhibition is being organised through a collaboration between EQUIP AUTO Paris and MIWA AFRICA SARL and is designed to become West Africa’s leading business platform for mobility and the automotive industry.

He said the three-day event would feature exhibitions, thematic workshops, conferences, business-to-business and business-to-consumer meetings, product demonstrations and live vehicle testing.

The exhibition will cover passenger vehicles, light commercial vehicles, heavy-duty and industrial vehicles, transport, automotive aftermarket, agriculture and public works, reflecting the realities and growth potential of the West African market.

Azilinon disclosed that exhibitors are expected from Germany, France, Türkiye, Italy, Algeria, Nigeria, Cameroon, India, China, South Korea and Japan.

“Our ambition is to position EQUIP AUTO Côte d’Ivoire as the leading platform for developing business in West Africa by combining innovation with business opportunities and establishing the region as a strategic mobility hub for Africa,” he said.

He added that the event’s innovative B2B2C format would create a strategic meeting point for vehicle manufacturers, distributors, repairers, fleet operators and government agencies, while giving participants access to cutting-edge technologies and mobility solutions tailored to regional needs.

According to him, the exhibition is also expected to stimulate regional trade, strengthen cross-border partnerships, support the modernisation of automotive infrastructure and distribution networks, and facilitate the expansion of international companies into West African markets.

Explaining why Côte d’Ivoire was selected to host the inaugural edition, Azilinon cited the country’s political stability, investor-friendly environment, strategic infrastructure and growing economic influence within the Economic Community of West African States.

He noted that Côte d’Ivoire has maintained strong institutional stability following the 2025 elections, recorded major investments in transport, energy and construction, and hosts the Port of Abidjan, one of West Africa’s busiest maritime gateways.

He also pointed to the country’s robust economic performance, with a growth rate of 6.5 per cent in 2024, driven by agriculture, agribusiness, infrastructure and services.

The Ivorian Ambassador to Nigeria, Ambassador Kalilou Traoré, was represented at the event by Dr. Kaslime Kouassi, underscoring the country’s commitment to strengthening economic and commercial ties across the region through the automotive sector.

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FG Courts China Logistics Deal to Power $1tn Economy Drive

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FG Courts China Logistics Deal to Power $1tn Economy Drive

FG Courts China Logistics Deal to Power $1tn Economy Drive

The Federal Government has intensified efforts to deepen its transport and logistics partnership with China, declaring that an efficient logistics system will be central to Nigeria’s ambition of building a US$1 trillion economy by 2030.

Speaking virtually at the 2026 Ningbo–Africa Trade and Logistics Cooperation Forum in Ningbo, Zhejiang Province, China, the Technical Adviser to the Vice President on Transportation, Logistics and Innovation, Dr. Segun Obayendo, said the Tinubu administration was implementing strategic reforms and partnerships to modernise transport infrastructure, improve supply chain efficiency and position Nigeria as West Africa’s logistics and distribution hub.

Obayendo said the Renewed Hope Agenda places infrastructure development, trade facilitation, investment promotion and economic competitiveness at the heart of the administration’s economic agenda, stressing that these goals cannot be achieved without a modern and integrated transport system.

“Nigeria’s aspiration to build a one-trillion-dollar economy will depend not only on what we produce but also on how efficiently we move people, goods and services,” he said.

“Modern transport infrastructure, resilient supply chains and efficient logistics systems are fundamental to attracting investment, expanding trade and driving sustainable economic growth.”

He noted that Nigeria’s strategic location, vast natural resources, expanding consumer market and access to the African Continental Free Trade Area (AfCFTA) provide a strong platform for regional economic leadership.

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0However, he said unlocking these opportunities would require sustained investment in multimodal transport infrastructure, seaports, rail networks, highways, inland dry ports, digital logistics platforms and integrated supply chains.

Obayendo described China’s zero-tariff policy for exports from African countries as a major opportunity for Nigeria to boost exports, strengthen local manufacturing, attract fresh investments and integrate more effectively into global value chains.

According to him, stronger Nigeria–China relations should extend beyond trade to include technology transfer, industrial development, infrastructure investment, innovation and skills development capable of generating sustainable jobs for millions of Nigerians.

He stressed that integrated logistics corridors connecting seaports, inland dry ports, rail lines, highways and warehousing facilities remain critical to reducing the cost of doing business, improving export competitiveness and maximising opportunities under AfCFTA.

The presidential aide commended the organisers of the forum—the Pan-African Institute for Supply Chain Innovation (PAISCI), the Ningbo China Institute for Supply Chain Innovation (NISCI) and China-base Group—for creating a platform that translates policy discussions into practical economic partnerships.

He also welcomed the proposed cooperation agreement on port development and logistics infrastructure between GK&A Logistics Services Limited and China-base Ningbo Foreign Trade Co. Ltd., describing it as a significant milestone in strengthening Nigeria’s logistics capacity and bilateral economic ties.

“Transport and logistics are no longer merely support services; they are strategic economic assets. Countries that invest in efficient logistics systems become more competitive, attract greater investment, create quality jobs and unlock new opportunities for sustainable development,” Obayendo said.

He reaffirmed the Federal Government’s commitment to policies and partnerships that promote efficient transportation, logistics innovation, trade facilitation and sustainable industrial development.

Obayendo expressed confidence that agreements reached at the Ningbo forum would deepen Nigeria–China economic cooperation, stimulate private sector investment and enhance Nigeria’s competitiveness in global trade, while urging governments, development partners, financial institutions and the private sector to sustain collaboration in implementing the resolutions.

 

FG Courts China Logistics Deal to Power $1tn Economy Drive

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