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

Published

1 year ago

June 4, 2025

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.

Related Topics:Auto assembly plant Economy LSM MD Taiwo Shittu

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OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

Published

23 hours ago

October 15, 2026

Trends Admin

OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

…Introduces ₦890,000 monthly payment plan as Nigerian mobility firm marks sixth anniversary

Nigerian vehicle and energy company, OMAA, has unveiled three passenger vehicle models in compressed natural gas (CNG) and battery-electric variants, alongside a financing scheme offering repayment periods of up to 48 months to help transport operators and corporate organisations expand their fleets.

The new models — OMAA U3 minibus, K7 bus and V12 high-capacity city bus — are designed to serve different segments of the passenger transport market, from urban shuttles and institutional transport to large-scale mass transit operations.

The announcement, which coincides with the company’s sixth anniversary, also marks the introduction of OMAA Finance, a programme developed in partnership with Nigerian financial institutions to ease the burden of upfront vehicle acquisition costs.

Under the scheme, advertised monthly payments start from ₦890,000 for the OMAA U3 minibus, with an initial deposit of 10%. Financing terms, however, will depend on eligibility requirements, repayment tenure and the customer’s equity contribution.

The company has also opened pre-orders for the three models, giving prospective buyers the option of choosing between CNG and battery-electric powertrains according to their routes, operating costs and access to the necessary energy infrastructure.

Speaking on the development, OMAA’s Managing Director, Chinedu Oguegbu, said the launch reflected the company’s commitment to local automotive manufacturing and the expansion of cleaner, more affordable transport solutions.

“Six years ago, we set out to demonstrate that commercial vehicles could be assembled in Nigeria and powered by cleaner, more affordable energy. Today, the introduction of the OMAA U3, K7 and V12 in both CNG and electric variants, alongside our vehicle financing programme, represents another significant step towards that vision,” Oguegbu said.

He explained that the company’s objective extended beyond supplying vehicles to helping operators manage running costs, access after-sales support and build sustainable transport businesses.

“By combining locally supported servicing, parts availability and structured financing, we are creating opportunities for schools, hospitals, corporate organisations and mass transit operators to expand their fleets with greater confidence,” he added.

Three models target different market segments

The new lineup covers a broad range of passenger transportation needs.

The OMAA U3 is a 12-to-15-seater minibus designed for urban and intercity transport operators, institutional shuttle services and businesses requiring compact passenger vehicles.

The K7, with a capacity of 23 to 30 passengers, targets staff transportation, school bus services, corporate fleets and medium-capacity passenger routes.

The V12, the largest of the three models, is configured to accommodate between 43 and 70 passengers. It is designed for mass transit operators and businesses serving routes with high passenger demand.

All three models are offered in CNG and battery-electric configurations, allowing fleet owners to evaluate alternative powertrains based on fuel or electricity costs, vehicle utilisation, maintenance requirements and access to refuelling or charging facilities.

The dual-powertrain strategy comes as transport operators increasingly explore ways to manage energy expenses and improve the economics of commercial vehicle operations.

Special-purpose vehicles broaden applications

Beyond passenger buses, OMAA is offering special-purpose vehicle configurations based on the same platforms.

The options include cargo vans, ambulances, VIP transport vehicles and airport shuttles, extending the potential applications of the company’s vehicle range to logistics, healthcare, corporate mobility and airport transportation.

The use of common vehicle platforms could also help fleet owners streamline maintenance, spare-parts management and technical training, particularly where organisations operate different vehicle configurations.

Finance scheme targets high acquisition costs

OMAA Finance is a central component of the company’s strategy to lower the barriers to commercial vehicle ownership.

By spreading acquisition costs over repayment periods of up to four years, the programme is intended to help operators preserve working capital while expanding or renewing their fleets.

The advertised starting monthly payment of ₦890,000 for the U3, subject to a 10% initial deposit, provides an entry point for prospective buyers. The actual cost of financing will depend on the applicable terms, including the vehicle price, deposit, interest and other charges, where applicable.

The company is also promoting a total cost of ownership (TCO) approach, which considers not only the purchase price but also energy consumption, servicing, spare parts and other expenses incurred throughout a vehicle’s operating life.

According to OMAA, the combination of structured financing, local servicing support and spare-parts availability is intended to help customers plan operating expenses and make more informed fleet investment decisions.

However, the potential savings will vary according to the vehicle selected, financing conditions, energy prices, mileage, maintenance costs and the availability of suitable CNG refuelling or electric charging infrastructure.

Six years of operations

Headquartered in Umunya, Anambra State, with offices in Lagos, Abuja and Accra, OMAA operates in Nigeria and Ghana, serving fleet operators, institutions and businesses.

The latest launch builds on the company’s six-year operating history and its efforts to combine local vehicle assembly, alternative energy solutions and financing options in the commercial mobility market.

For transport operators contending with rising operating expenses and the high cost of fleet expansion, the new models and financing arrangements offer additional options for acquiring passenger vehicles.

The initiative’s long-term impact, however, will depend on the vehicles’ performance under local operating conditions, the accessibility and affordability of financing, reliable after-sales support and the availability of the infrastructure required to sustain CNG and electric mobility.

With the latest unveiling, OMAA is seeking to position itself beyond vehicle supply, offering an integrated commercial mobility proposition that combines vehicle acquisition, alternative energy choices, maintenance support and financing.

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FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

Published

2 days ago

October 14, 2026

Trends Admin

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

The Federal Government has stepped up efforts to strengthen Nigeria’s automotive industry and promote more affordable transportation through collaboration with local vehicle manufacturers, following visits to two manufacturing facilities in Anambra State.

Board members of the National Automotive Design and Development Council (NADDC) inspected the facilities of Innoson Vehicle Manufacturing (IVM) in Nnewi and Kojo Motors Auto Assembly in Umunya to assess their production capacity, identify operational challenges and explore ways to support indigenous manufacturers.

The visit comes amid the Federal Government’s drive to expand the use of compressed natural gas (CNG) and electric vehicles as alternatives to petrol-powered transportation, with the aim of reducing operating costs and making public transport more affordable.

The manufacturers welcomed the government’s new policy directing ministries, departments and agencies (MDAs) to patronise locally manufactured vehicles, saying it could increase demand for their products and strengthen domestic production.

Secretary to the Government of the Federation, George Akume, had issued a circular directing government establishments to purchase vehicles from local manufacturers.

Managing Director of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma, said he was encouraged by the government’s emphasis on CNG, describing the fuel as an important option for sustaining Nigeria’s automotive industry amid rising petrol and diesel costs.

Chukwuma disclosed that the company had dedicated its newest large-scale facility to producing CNG-powered trucks and electric vehicles.

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

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Electric Mobility: Spiro Unveils Expansion Plan, Names Nigeria New MD

Published

7 days ago

October 9, 2026

Trends Admin

Electric Mobility: Spiro Unveils Expansion Plan, Names Nigeria New MD

Spiro, Africa’s leading electric mobility company, is stepping up plans to expand its footprint in Nigeria, strengthen its battery-swapping infrastructure and deepen partnerships to make electric motorcycles more accessible and affordable to riders.

The company unveiled the growth strategy at the second edition of its Media Connect event in Lagos, where it formally introduced its new Country Head and Managing Director, Mr Prasad Sane, who will lead its operations and expansion drive in the country.

Sane said Spiro would consolidate its presence in Lagos, Ogun and Oyo states while exploring opportunities to extend its operations to additional markets, as it seeks to accelerate Nigeria’s transition to cleaner and more sustainable transportation.

The event brought together journalists covering business, technology, mobility and sustainability to discuss the company’s progress, infrastructure development and long-term ambitions for Nigeria’s electric mobility market.

Addressing the gathering, Sane said the company was moving beyond the deployment of electric motorcycles to building an integrated mobility ecosystem designed to improve riders’ earnings, reduce operating costs and create economic opportunities.

“Today is about progress, partnership and purpose. A year ago, we shared our vision for electric mobility in Nigeria. Today, we are demonstrating tangible results and a clear path forward,” he said.

He added that his mandate was to make Spiro one of the most trusted, affordable and accessible electric mobility solutions for Nigerians, beginning with its existing focus markets.

“My mandate is simple: to make Spiro the most trusted, affordable and accessible electric mobility solution for Nigerians, beginning with Lagos, Ogun and Oyo states.

“We are moving beyond electric bikes to build a complete ecosystem centred on our promise of ‘Energy on the Move’,” Sane stated.

A major pillar of the company’s strategy is its battery-swapping technology, which allows riders to exchange depleted batteries for fully charged ones in under a minute, reducing downtime and eliminating the need to wait for conventional recharging.

According to Sane, the model offers riders an alternative to rising fuel and maintenance costs while supporting efforts to reduce carbon emissions and improve the economics of commercial motorcycle operations.

“Electric mobility is no longer the future. It is the present, and Nigeria is poised to lead the transition,” he said.

Under its expansion plan, Spiro intends to accelerate the deployment of battery-swapping stations and service centres across Lagos, Ogun and Oyo states to improve accessibility, operational efficiency and customer support.

The company also plans to extend its geographical reach beyond the three states, bringing its electric motorcycles and related services to more Nigerian markets.

Another priority is strengthening partnerships with financial institutions, logistics companies and rider communities to improve access to electric motorcycles and its Battery-as-a-Service solutions.

The approach is expected to support wider adoption by riders who may face financial barriers to acquiring electric motorcycles outright, while helping businesses explore cleaner and potentially more cost-effective transportation options.

Spiro also plans to scale up local assembly operations, technical training and after-sales support, with a focus on creating employment opportunities, particularly for young Nigerians and women.

The company said the measures would help strengthen its operational capacity while developing local skills and supporting the growth of Nigeria’s electric mobility ecosystem.

The Media Connect event featured live product demonstrations and operational showcases, alongside the unveiling of the Spiro Ekon M1 Version 3, highlighting the company’s efforts to develop its electric motorcycle offerings for the Nigerian market.

Spiro, which received the West Africa Sustainable Award (WASA), is positioning its expansion around electric motorcycles and battery-swapping infrastructure as it seeks to contribute to the growth of sustainable mobility across Nigeria.