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Automobile Assembly Plants Can Revive Economy, Create Jobs — LSM MD, Taiwo Shittu

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1 year ago

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Automobile Assembly Plants Can Revive Economy, Create Jobs — LSM MD, Taiwo Shittu

 

Managing Director of Lanre Shittu Motors, Mr. Taiwo Shittu, who recently bagged the Vanguard Newspaper Auto Industry Icon Award. He spoke in this interview on a number of industry issues including the high cost of new vehicles, options available; the national auto policy, and challenges facing automobile assemblers. Excerpts:

 

What is your assessment of the truck segment of the automobile business in Nigeria? And why the shift from Western brands to Chinese?

The first thing you consider in this automotive business is the value to the customer and the return on investment – both for the customer and the distributor. Those trying to sell trucks should put themselves in the users’ shoes. Everything is give and take. The cost of a truck from a Western country can buy almost four units in China. And the truth is that Chinese brands are already here, running shoulder to shoulder with the Western ones.

Gone are the days when people used to say Chinese brands were “upcoming.” They are no longer upcoming; they are here now and doing wonders on the roads. They are pulling their weight and making their way into the United States, doing very well. They are now global products with a high rate of return on investment.

We have trucks we sold to customers 11 years ago, and they are still on the road, performing excellently – from Lagos to Bauchi, Gombe, and other places.

 

Are Chinese vehicle brands not cheaper because they are perceived as inferior to their Western counterparts?

They entered the market with lower prices to gain acceptance. That was a deliberate strategy. Now, they’ve achieved that goal and are penetrating markets globally.

At Lanre Shittu Motors, we saw the opportunity years ago. We knew Chinese brands would take over the truck business in Nigeria and beyond. Now, they are the fastest-selling and have the highest sales numbers, looking at last year’s records. Everything is about vision. To succeed in any business, you must be visionary. You must have an idea of what will happen in the next 10 years in your sector.

It was obvious what would happen in the auto sector, considering inflation, the devaluation of the Naira, and the general state of the economy both in Nigeria and globally. For instance, a house sold for about £300,000 in London 10 years ago is now worth about £1.4 million.

During inflation and economic downturn, people naturally gravitate towards more viable options. And in the truck business in Nigeria, that viable option is the Chinese brand.

 

How do you feel being named Nigeria’s Auto Industry Icon at the recent Vanguard Awards? And what do you think informed your selection?

First of all, I give glory to Almighty Allah for making this honour possible. Sometimes, you may have a vision, but people, the economy, or circumstances might hinder its actualization. In my case, the vision came from our late Chairman, my father, Alhaji Rasaki Olanrewaju Shittu, who conceptualized it, nurtured it, and was blessed with the right team. That is a rare gift.

I feel honoured by the award. It is also a challenge – a reminder that I must do more. People are looking up to me, and I’m encouraged. I dedicate this award to my late father. He was visionary and groomed us to stand on our own. I remain indebted to him.

 

What do you consider one major thing the government can do to improve the auto industry?

I know some people are relocating due to economic challenges, but many Nigerians and companies, including LSM, still believe in this country. The best way the government can support those of us in the auto sector is to fully return to the auto policy. The government should incentivize investors to keep us in business. Without proper incentives, the sector cannot grow or contribute meaningfully to the national economy.

We need better incentives for players in the CKD (Completely Knocked Down) and SKD (Semi-Knocked Down) categories.

 

In Kigali, Rwanda, a Ghanaian was showcased as Vice President of AAAM (Africa Association of Automotive Manufacturers), not a Nigerian. What can Nigeria do to regain the confidence of Original Equipment Manufacturers (OEMs)?

To attract investors, you must guarantee their investments – and you can only do this with a clear, well-articulated policy backed by law. One of President Bola Tinubu’s campaign promises was to improve the automotive sector. He has already started by introducing CNG-powered vehicles to reduce transportation costs. We are part of the PI-CNG team and have converted many high-capacity buses for the NURTW and other users. These buses are already running, including as airport shuttles. More CNG and electric vehicles from us will be introduced next year.

To get OEMs interested, Nigeria must have a robust auto policy supported by legislation signed by the President. Nigeria’s auto sector can serve all of West Africa – we have the capacity to become the region’s automotive hub.

 

Do you think the National Assembly is doing enough in this regard?

Industrialization is one of the current administration’s key agendas. The auto industry is central to any country’s industrialization effort.

To fully develop Nigeria’s auto industry, the auto policy must be revived and supported by strong legislation. I believe this government will act, especially as it’s part of their manifesto. That’s why we are positioning our new assembly/manufacturing plant in alignment with the new auto policy law, which has passed second reading in the National Assembly.

Competition in the industry shouldn’t be with “briefcase businessmen” who come in with nothing but sell fully built vehicles. Government should encourage real investors – those who invest in the country, not just import, stock in warehouses, and sell.

Empowering local industries is critical to economic growth, and this applies beyond the auto industry. But you can’t talk about industrialization without prioritizing the auto sector. I believe President Tinubu’s administration is on the right path, and we are positioning ourselves to take full advantage.

What can be done to reduce the cost of new cars?

The auto policy provides special waivers for SKD and CKD assemblers to make their vehicles more affordable. Similar waivers granted to CNG and electric vehicle assemblers should be extended to other manufacturing/assembly plants. Doing this will lead to an immediate 17.5% reduction in the prices of locally manufactured vehicles.

This policy extension will reactivate dormant assembly plants and create significant job opportunities for Nigerians.

 

What challenges do you face as auto manufacturers/assemblers and distributors?

Automobile investment is capital-intensive. Success requires a strong infrastructure to support operations. Selling a vehicle is easy; retaining customer trust is harder – especially without strong after-sales support.

Unfortunately, Nigeria often fails to provide adequate incentives to structured businesses. Meanwhile, we have to compete with unstructured dealers – people with no showroom or workshop, who bring in fully built trucks and offer no after-sales service. That’s unhealthy competition.

 

Is there hope for Nigeria’s auto industry?

Yes, there is hope. As I’ve said, President Tinubu’s agenda is to industrialize Nigeria, and the auto sector must play a key role in that effort.

The government must focus on the auto sector and create a level playing field with special incentives for serious investors. We’re not asking for free money. We want policy stability – the assurance that our investments won’t be jeopardized by sudden policy reversals.

 

How can the excesses of insincere operators be curbed?

Government must strictly follow existing standards and templates. Agencies like the NADDC know the real players with actual capacity. Some may build plants, but without proper incentives, they can’t operate them effectively.

 

How do you cope with the current tax regime?

We pay multiple taxes – VAT, duty, levy, and others. These charges are burdensome. I urge the government to extend the same waiver enjoyed by CNG and EV assemblers to the broader auto industry.

 

That will attract OEMs to invest directly or through partnerships with capable Nigerian firms. All they want is a level playing field and investment protection.

 

Why are banks reluctant to offer auto finance loans?

Many banks previously regretted offering auto loans. Some customers defaulted, and the banks lost money. This led to their reduced interest in auto finance. Some of us still run such schemes, but not at the scale we used to.

 

Tell us about the new LSM brand name.

The name LSM was coined to immortalise our father legaacy. I credit my late father, Alhaji Rasaki Olanrewaju Shittu, for laying the foundation. He had a strong team and raised us to prioritize integrity over money. He believed that a good name and character would always speak for you – even in your absence.

 

We also have a supportive family that is committed to preserving his legacy. Even my 19 siblings who aren’t in the business support its continued success. I thank them for allowing me to lead.

 

Have you stabilized the company?

Yes, I can confidently say the company is stable. But the vision is much bigger than what it used to be. God remains the driving force.

 

LSM once spoke of plans to build more auto assembly plants. What’s the update?

The project is ongoing. We’re building and putting everything in place.

 

When will the next plant be completed and launched?

Early next year. The new plant will cover 40,000 square metres – about 10 times the size of the current one at Amuwo Odofin, Lagos.

 

What brands do you currently control?

We are focusing more on JAC heavy-duty trucks and our own LSM brand.

 

In what segment is the LSM brand playing?

LSM is active in the commercial segment – CNG buses, light-duty buses, high-capacity buses, and pickups. We’re accrediting distributors for

the LSM brand nationwide. Next year, we’ll introduce LSM CNG and EV passenger vehicles.

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Auto Industry Heavyweights, Top Regulators Converge for Nigeria Summit on EV, CNG Future

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July 16, 2026

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Auto Industry Heavyweights, Top Regulators Converge for Nigeria Summit on EV, CNG Future

 

Leading automobile manufacturers, transport regulators and key government agencies have confirmed participation in the 2026 Nigeria Auto Industry Summit(NAISU), underscoring growing industry support for Nigeria’s transition to electric vehicles (EVs) and Compressed Natural Gas (CNG)-powered transportation.

Among the major industry players backing this year’s summit are Weststar Associates Limited, Toyota (Nigeria) Limited, Jetour Nigeria, Carloha Nigeria, Simba Group, Cedric Masters Group, Coscharis Motors, Lanre Shittu Motors etc.

Policymakers, investors, financial institutions, fleet operators and technology providers are also expected at the event being organised by Nigeria Auto Journalists Association (NAJA) in collaboration with the National Automotive Design and Development Council (NADDC).

The Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, has confirmed his participation as a keynote speaker and is expected to address issues bordering on road safety, regulation and the deployment of EVs and CNG-powered vehicles in Nigeria.

Also confirmed as guest speakers are the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, and the Chairman/Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG and EV), Ismaeel Ahmed.

They are expected to provide insights into the Federal Government’s automotive industrialisation agenda, clean mobility policies and ongoing efforts to accelerate the adoption of EVs and CNG-powered vehicles across Nigeria.

The third edition of the summit will hold on Thursday, July 30, 2026, at the Radisson Hotel, Ikeja, Lagos.

The theme of this year’s event is: “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration.”

Chairman of the 2026 Auto Summit Planning Committee, Rasheed Bisiriyu, said the event comes at a critical period as Nigeria intensifies efforts to drive cleaner transportation through the adoption of electric vehicles and compressed natural gas.

According to him, the summit will bring together government officials, automotive manufacturers, regulators, energy experts and transport stakeholders to assess ongoing reforms and develop practical strategies for advancing the country’s clean mobility agenda.

“The summit comes at a critical period when Nigeria is implementing policies aimed at reducing transportation costs, lowering carbon emissions and encouraging greater investment in alternative energy mobility solutions,” Bisiriyu said.

He added that discussions would review the progress made under the Bola Tinubu administration in promoting EV and CNG adoption while identifying policy, infrastructure and financing gaps requiring urgent attention.

According to him, participants will also examine strategies for expanding EV charging infrastructure and CNG refuelling stations, promoting local vehicle assembly, improving consumer awareness, attracting private sector investment and strengthening the regulatory framework needed to support sustainable transportation.

Bisiriyu noted that the summit is designed to move beyond policy conversations by generating practical recommendations capable of accelerating Nigeria’s transition to cleaner mobility.

Also speaking, NAJA Chairman, Theodore Opara, said the annual Auto Summit has evolved into one of Nigeria’s foremost automotive policy dialogue platforms, bringing together government institutions and private sector operators to address critical issues affecting the industry’s growth.

According to Opara, achieving Nigeria’s clean mobility objectives requires broad collaboration among regulators, manufacturers, energy providers, transport operators, safety agencies and consumers.

He said, “We are bringing together regulators, manufacturers, energy providers, transport operators, safety agencies and consumers because the transition to clean mobility requires collective action.

“The objective is not only to discuss policy but also to identify practical solutions that will accelerate Nigeria’s journey towards affordable, cleaner and more sustainable transportation.”

Organisers said the summit is expected to generate actionable recommendations to support the Federal Government’s drive to deepen investment in alternative fuel technologies, strengthen local automotive manufacturing, improve transport sustainability and position Nigeria as a leading player in Africa’s emerging clean mobility ecosystem.

With participation already confirmed by leading automotive brands, regulators and other key stakeholders, the 2026 NAISU is shaping up to be one of Nigeria’s most influential gatherings on the future of the automotive industry and the country’s transition to cleaner, more sustainable mobility.

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Carloha Nigeria Unveils Nationwide 6-6-7 Rescue Service, Extends Free Roadside Assistance Beyond Chery Owners

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July 14, 2026

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Carloha Nigeria Unveils Nationwide 6-6-7 Rescue Service, Extends Free Roadside Assistance Beyond Chery Owners

 

Carloha Nigeria, the authorised distributor of Chery vehicles in Nigeria, has launched the CarlohaCare 6-6-7 Rescue Initiative, a nationwide emergency roadside assistance programme aimed at providing prompt and professional support to motorists stranded by vehicle breakdowns on highways and major roads across the country.

The 24-hour rescue service, which is available through a dedicated emergency hotline, reinforces the company’s commitment to enhancing vehicle ownership by ensuring that trained rescue professionals are on standby to respond to emergencies whenever they occur.

The auto firm says motorists in need of assistance can reach the CarlohaCare Rescue Team by calling 07000 667 667, after which a professionally trained crew will be dispatched to provide support.

While response times would depend on location and road accessibility, the company assured that every distress call would receive professional attention.

The rescue programme is the latest addition to Carloha Nigeria’s award-winning CarlohaCare 6-6-7 aftersales package, which earned the company the Most Outstanding Aftersales Car Company award at the Nigeria Auto Journalists Association (NAJA) Awards.

The package offers a six-year manufacturer’s warranty, six years of free scheduled maintenance and a seven-day repair promise.

Under the repair guarantee, customers are provided with a courtesy vehicle if repairs extend beyond seven working days due to parts availability or other qualifying circumstances.

The new rescue initiative now takes that commitment beyond the workshop to the roadside.

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Speaking on the development, Carloha Nigeria’s After-sales Manager, Samson Akinbowale, said the initiative was designed to give motorists greater confidence by ensuring help is always within reach.

“Vehicle breakdowns can occur unexpectedly and often create stressful situations for motorists. With the CarlohaCare 6-6-7 Rescue Initiative, our customers can enjoy peace of mind knowing that a dedicated team of trained professionals is available around the clock to provide prompt assistance whenever they need it,” he said.

Akinbowale added that the programme also includes on-location maintenance support to minimise vehicle downtime for both individual motorists and fleet operators.

Also speaking, the company’s General Manager, Marketing, Felix Mahan, described the initiative as another milestone in Carloha Nigeria’s customer-focused strategy.

“The CarlohaCare 6-6-7 Rescue Initiative is an extension of our vision to provide a superior ownership experience and eliminate the worries that come with vehicle ownership. We want every Chery owner to know that help is always just a phone call away,” Mahan said.

In a move the company described as an industry first in Nigeria, Carloha Nigeria announced that for a limited period, the free roadside rescue service would also be available to owners of non-Chery vehicles, subject to operational capacity. Chery owners, however, will continue to receive priority during periods of high demand.

According to Mahan, the decision reflects the company’s commitment to improving road safety and supporting the wider motoring community.

“We have the team, the trucks and the expertise. When our rescue fleet has spare capacity, it is our responsibility to deploy those resources to keep Nigeria’s roads moving, regardless of the vehicle brand. By extending this service beyond our customers, we are contributing to safer roads and setting a new benchmark for aftersales support in the Nigerian automotive industry,” he said.

Non-Chery motorists requiring assistance can call the same emergency hotline to confirm eligibility at the time of request. The company also advised motorists to follow its official social media platforms and website for updates on service availability and coverage areas.

Beyond emergency rescue and towing, the initiative provides on-location maintenance and technical support for individual motorists and fleet operators, where applicable. Carloha Nigeria said the service is expected to reduce workshop visits, minimise vehicle downtime and give motorists greater peace of mind on Nigerian roads.

 

Carloha Nigeria Unveils Nationwide 6-6-7 Rescue Service, Extends Free Roadside Assistance Beyond Chery Owners

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NADDC Eyes Media Alliance to Fast-Track Automotive Industry Growth

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6 days ago

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July 11, 2026

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NADDC Eyes Media Alliance to Fast-Track Automotive Industry Growth

 

The National Automotive Design and Development Council (NADDC) has identified stronger collaboration with specialised motoring media as a strategic imperative for accelerating the growth of Nigeria’s automotive industry, saying sustained public awareness, investor confidence and policy support are crucial to transforming the country into a leading vehicle manufacturing hub in Africa.

The Council stated this while receiving the Motoring World Resilience in National Automotive Development Award during the 30th anniversary celebration of Motoring World magazine in Lagos.

The award recognises NADDC’s consistent commitment to promoting local vehicle manufacturing, skills development and industrial growth despite economic headwinds and policy challenges.

Receiving the award on behalf of the Director-General of NADDC, Otunba Oluwemimo Joseph Osanipin, the Director of the General Services Department, Mrs. Susan Bisong-Taiwo, reaffirmed the Council’s determination to position Nigeria as a leading automotive manufacturing and innovation hub in Africa.

In a keynote address delivered on behalf of the Director-General and titled “Motoring Media as a Catalyst for Automotive Industry Growth in Nigeria,” Osanipin said specialised motoring media remains indispensable to the country’s automotive industrialisation drive by promoting investment, shaping public perception and deepening understanding of emerging mobility technologies.

He noted that across the world, the media had played a strategic role in supporting local manufacturing, educating consumers, stimulating policy debates, attracting investment and strengthening confidence in the automotive industry.

“The media is the bridge between government, industry and the public. It informs. It educates. It influences perception. And, importantly, it drives national conversations,” he said.

According to him, the global automotive industry is witnessing unprecedented transformation driven by electric mobility, alternative fuels, smart manufacturing and green transportation technologies, adding that Nigeria must position itself to benefit from these emerging opportunities.

Osanipin disclosed that NADDC is implementing strategic programmes aimed at transforming Nigeria from a vehicle-consuming nation into a competitive automotive manufacturing and innovation centre. The initiatives, he said, include electric vehicle development, compressed natural gas (CNG) conversion programmes, local content promotion, automotive component manufacturing, skills acquisition and strategic partnerships across the industry.

He stressed that government policies alone cannot deliver the desired transformation, urging the motoring media to simplify automotive policies for public understanding, educate Nigerians on cleaner mobility solutions, encourage patronage of locally assembled vehicles and sustain constructive engagement among policymakers, investors, manufacturers and consumers.

The Director-General also underscored the importance of positive and balanced narratives in attracting investment to the sector.

“Where the narrative is dominated only by challenges and uncertainties, investor confidence weakens. But when the media responsibly highlights innovation, progress and opportunities, it inspires confidence and stimulates growth,” he said.

Osanipin commended Motoring World magazine for its resilience and invaluable contributions to automotive journalism, policy advocacy and industry development over the past 30 years, describing its longevity in Nigeria’s challenging media environment as a reflection of professionalism, relevance and dedication.

He maintained that stronger collaboration among government institutions, industry operators and specialised motoring media would become even more critical as Nigeria advances its automotive industrialisation and energy transition agenda.

Highlighting Nigeria’s prospects, he said the country has significant automotive potential arising from its large market, youthful population, growing technical capacity, increasing investor interest and abundant natural resources. He, however, stressed that policy consistency, infrastructure development and sustained stakeholder collaboration remain essential to unlocking the sector’s full potential.

“If government, industry and the media work together strategically, Nigeria can emerge as a major automotive hub on the African continent,” he said.

The Motoring World Resilience in National Automotive Development Award honours institutions and individuals that have demonstrated exceptional commitment and resilience in advancing Nigeria’s automotive industrialisation despite prevailing economic and policy challenges.

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