Auto
Automobile Assembly Plants Can Revive Economy, Create Jobs — LSM MD, Taiwo Shittu
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.
Auto
NIWA, LASWA, SIFAX, Dangote Transport Lead Stakeholders for 2026 TCAN Summit
NIWA, LASWA, SIFAX, Dangote Transport Lead Stakeholders for 2026 TCAN Summit
The National Inland Waterways Authority (NIWA), Lagos State Waterways Authority (LASWA), SIFAX Logistics and Dangote Transport are among leading government agencies and private-sector operators that have confirmed participation in the 2026 Transportation Summit of the Transportation Correspondents Association of Nigeria (TCAN).
The summit, scheduled for September 24, 2026, at the Radisson Hotel, Ikeja, Lagos, will bring together policymakers, regulators, industry leaders, transport operators, development partners, academics and other stakeholders to examine how transportation and logistics can be leveraged to accelerate Nigeria’s economic growth.
Themed “Unlocking Nigeria’s Economic Growth Through Transportation Logistics,” the summit is expected to focus on critical issues affecting the efficiency, competitiveness and sustainability of Nigeria’s transportation and logistics ecosystem.
According to the TCAN Chairman, Tola Adenubi, discussions will centre on strategies for improving logistics infrastructure, strengthening policy implementation, enhancing safety and innovation, and promoting sustainable development across the sector.
He said the summit would examine the current state of Nigeria’s transportation logistics architecture, with particular attention to roads, waterways, rail and aviation.
“Participants are expected to identify bottlenecks affecting the seamless movement of cargo and passengers and examine how multimodal transportation integration can contribute to economic expansion,” Adenubi said.
He added that other key areas would include investment opportunities across the logistics and supply-chain ecosystem, digital transformation of the logistics value chain, infrastructure financing and public-private partnership opportunities.
Adenubi said stakeholders would also examine regulatory frameworks needed to optimise the transportation sector and develop policy recommendations capable of improving efficiency and strengthening Nigeria’s global competitiveness.
According to him, the participation of NIWA, LASWA, SIFAX Logistics and Dangote Transport underscores the growing commitment of both government agencies and private-sector operators to finding practical solutions to the challenges confronting Nigeria’s transportation industry.
The summit is also expected to provide a platform for government representatives to present ongoing reforms, infrastructure investments and policy initiatives aimed at improving intermodal connectivity, particularly the integration of waterways with road and rail transportation.
Adenubi said the participation of key government agencies and industry players would provide stakeholders with first-hand insights into the government’s transportation agenda while creating an avenue for meaningful dialogue among policymakers, operators and the media.
The 2026 TCAN Summit will feature keynote presentations from government officials and industry stakeholders, alongside networking sessions designed to strengthen collaboration and partnerships across the transportation and logistics value chain.
Discussions will cover critical challenges and opportunities in road, rail, maritime, aviation and multimodal transportation, with emphasis on how an integrated transport system can improve cargo movement, passenger mobility and economic productivity.
TCAN will also recognise individuals and organisations that have made significant contributions to the development of Nigeria’s transportation industry through its “Champion of Transport Industry Development” compendium.
The association said the summit is expected to generate practical recommendations for strengthening Nigeria’s logistics architecture and positioning transportation as a more powerful engine of economic growth.
Auto
EXEED to Storm Nigeria’s Premium Auto Market in December, courtesy of Versat
EXEED to Storm Nigeria’s Premium Auto Market in December, courtesy of Versat
Nigeria’s premium automotive market is set for a new entrant as Versat Automobile Limited prepares to introduce EXEED, the premium mobility brand of Chery Automobile, to the country in December 2026.
The arrival of EXEED is expected to further intensify competition in Nigeria’s fast-evolving premium vehicle segment, with the brand bringing together advanced technology, distinctive design and contemporary luxury under its global philosophy, “Born for More.”
According to Versat, EXEED is designed for consumers who seek more than conventional mobility and are driven by a desire for greater possibilities in life, career and personal achievement.
Drawing on Chery Automobile’s extensive research and development capabilities, the brand is positioned at the intersection of sophisticated design, intelligent technology and premium driving experience—qualities Versat believes align with the expectations of Nigeria’s increasingly discerning automotive consumers.
General Manager, Sales, Versat Automobile Limited, Christopher Irumudomon, described the planned entry as a significant development for the company and Nigeria’s premium automotive market.
“The arrival of EXEED represents an exciting new chapter for premium mobility in Nigeria,” Irumudomon said.
“We are looking forward to introducing Nigerians to a brand that challenges convention, embraces exploration, and is truly Born for More.”
Ahead of the December launch, Versat said it would unveil more details about EXEED, including its technology, design philosophy and performance capabilities, as anticipation builds towards the brand’s official Nigerian debut.
EXEED is Chery Automobile’s premium automotive marque, developed around intelligent technology, sophisticated design and an enhanced driving experience. Guided by its “Born for More” philosophy and Spirit of Exploration, the brand seeks to combine advanced automotive technologies with distinctive styling and a forward-looking approach to premium mobility.
The Nigerian launch also represents a new phase in Versat Automobile’s expansion in the local automotive market.
Established in 2024, the company commenced its Nigerian market operations in 2026 with C&C Trucks, focusing on performance, durability, quality, reliability and customer support.
With the introduction of EXEED, Versat is now positioning itself to play a more prominent role in Nigeria’s passenger vehicle market, particularly the growing premium segment.
Auto
CBN Governor, NADDC DG to Lead LCCI Debate on Vehicle Financing as Alternative to Fuel Subsidy
CBN Governor, NADDC DG to Lead LCCI Debate on Vehicle Financing as Alternative to Fuel Subsidy
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, are among key stakeholders expected at a high-level symposium examining whether vehicle financing can provide a sustainable alternative to fuel subsidy as a tool for improving mobility in Nigeria.
Organised by the Auto Sectoral and Allied Group of the Lagos Chamber of Commerce and Industry (LCCI), the one-day symposium is scheduled for September 17, 2026, at the Henry Fajemirokun Hall, LCCI, Victoria Island, Lagos.
Themed “From Subsidy to Credit: Can Vehicle Financing Replace Fuel Subsidy as Nigeria’s Mobility Equalizer?”, the event will bring together stakeholders across the automotive, financial and transport sectors to examine how affordable credit can expand vehicle ownership, support fleet renewal and reduce the burden of rising transportation costs.
The organisers said the removal of fuel subsidy and its impact on transport costs had made it imperative to rethink how mobility could be made more affordable and sustainable.
Rather than relying largely on interventions aimed at keeping fuel prices low, the symposium will examine whether a robust vehicle-financing ecosystem can enable individuals, transport operators and small businesses to acquire vehicles through affordable and sustainable credit arrangements.
Discussions will focus on automotive lending, leasing, fleet renewal and the role of banks, development finance institutions and other financial players in expanding access to vehicle ownership.
The symposium is also expected to interrogate major barriers to automotive financing, including high interest rates, short loan tenures, foreign exchange pressures, high vehicle prices, credit risks and the limited availability of financing products tailored to Nigeria’s automotive market.
Chairman of the LCCI Auto Sectoral and Allied Group and Deputy Managing Director of R.T. Briscoe Nigeria Plc, Dr Femi Eghuaikhide, said the symposium was coming at a critical time when Nigeria needed to rethink how mobility could be made accessible to a wider population.
“The question before us is no longer simply how to make fuel cheaper, but how to make mobility more affordable and sustainable for Nigerians. Vehicle financing has the potential to become a powerful mobility equalizer if we can develop the right credit structures, realistic repayment terms and strong collaboration between government, financial institutions and automotive industry stakeholders.”
Eghuaikhide said the symposium would provide a platform for stakeholders to move beyond identifying the challenges and develop practical financing solutions capable of supporting vehicle ownership, public transportation and the growth of Nigeria’s automotive industry.
Also speaking, Chairman of the Symposium Organising Committee and Chief Operating Officer of Bras Motors Limited, Austin Akpovili, said the event was designed to generate practical and actionable solutions.
“We are bringing the right stakeholders to one table because mobility is not only an automotive issue; it is an economic issue. Our objective is to examine how access to affordable vehicle credit can transform the lives of individuals, transport operators and businesses, while creating a stronger and more sustainable automotive ecosystem for Nigeria.”
Akpovili said participants would also have the opportunity to examine existing financing models and identify innovative approaches to make vehicle acquisition accessible to a broader segment of the population.
The event is expected to attract automobile manufacturers and dealers, commercial banks, development finance institutions, leasing and insurance companies, transport operators, government agencies, policymakers and other stakeholders across the automotive value chain.
Beyond vehicle ownership, experts will examine how affordable financing could accelerate the renewal of Nigeria’s ageing vehicle fleet, improve public transportation and stimulate demand for locally assembled vehicles and locally manufactured automotive components.
The LCCI Auto Sectoral and Allied Group has traditionally used its annual symposium to bring government, business leaders, financial institutions and automotive stakeholders together to address critical issues confronting the industry.
With this year’s theme shifting the conversation “from subsidy to credit,” the symposium is expected to examine whether Nigeria can move from short-term consumption support to a sustainable financing model that promotes asset ownership, productivity and economic empowerment.
The organisers said recommendations from the symposium would be presented as possible policy and industry solutions for making vehicle financing a stronger component of Nigeria’s broader mobility and economic development strategy.
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