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Eight years after, Nigeria’s auto policy wobbles

Published

4 years ago

December 27, 2021

Stakeholders still await auto policy’s full implementation eight years after its introduction, FEMI OWOEYE reports

Although Nigeria’s auto policy was launched almost three decades ago (1993), a development framework was not initiated until two decades after (2013); that was under President Goodluck Jonathan’s regime.

The policy and its development plan were aimed at boosting the demand for made-in-Nigeria vehicles and encouraging Original Equipment Manufacturers (OEMs) to set up local vehicle manufacturing plants. Ultimately, it was expected to revitalize and grow the Nigerian automotive sector with a multiplier effect on the nation’s economy.

No doubt, as a result of the partly implemented policy, the sector, within the last seven years has not only generated an ample of employment, it has also grown with an installed capacity to assemble about 500,000 vehicles per annum.

To this end, the industry has attracted many OEMs such as Honda, Mitsubishi, Ford, Geely, Kia, Nissan, Hyundai, Sinotruck, Shackman, Dongfeng, XCMG, Peugeot, MAN, Yutong and FAW, which have opened investment lines to Nigeria, mostly in the form of technical partnership with Nigeria entrepreneurs.

The industry also generated direct investment by indigenous brands such as Honda, Innoson, Jetvan and Proforce.

However, due to poor policy administration and failure to implement certain essential provisions of the policy, it has suffered a summersault, recording constrained capacity utilization. That is why 28 years down the line, the nation’s auto industry stakeholders are still hopelessly awaiting full implementation.

Fielding questions from this writer, Mr Luqman Mamudu, former Director of Policy and Acting Director General of the National Automotive Design and Development Council (NADDC), reiterated that poor project implementation on the part of the Federal Government had caused a setback for the nation’s auto industry.

He said, “Seven years into its 10-year tenure, there has been practically no monitoring and evaluation of the policy, apart from initial sector report in 2016/17. All the associated programmes designed to create demand for vehicles assembled in Nigeria and grow local content have been abandoned by institutions responsible to do so.”

Moreover, auto finance provision, which in the original draft of the NAIDP was meant to grant affordable loans to Nigerians to acquire locally assembled vehicles, thereby creating demand and making the secondhand imports unattractive over the years, has been jettisoned.

As if that was not enough, the Federal Ministry of Finance, by Section 38 of Finance Act 2020, further worsened the situation by reducing the protective tariff for imported fully built unit (FBU) commercial vehicles from 35 per cent to 10 per cent, while imported semi knocked down (SKD) kits remain at 10 per cent.

“As a result,” Mamudu pointed out that “Nigerian ports and streets are now flooded with all manner of used commercial vehicles and cars with consequent depletion of the nation’s foreign reserves and a weakened naira.

“Sadly, although Nigeria has established tremendous capacity utilization in the commercial vehicle body building, now you do not have to build locally, just import.”

Following the invocation of the 2020 Finance Act, it has become more profitable to simply import vehicles for sale than venturing into local assembling.

Mamudu stated further, “Automotive assembly, especially final assembly, which dominates assembly activities in Nigeria, is certainly unprofitable to the assemblers compared to outright import. The protective tariff and levies are equally vexatious to many interests, as they wish to import freely.

“So, the implementation process needs to have been carefully managed to quickly ramp up to the CKD and components manufacture, where all would be happy.

“This is why the process requires close monitoring and adjustment to align with public concern. It is because there is no reasonable feedback that those who had earlier opposed the policy in the first place seem to be having the upper hand. The Finance Act 2020 with its devastating effects is one such example. It particularly accused the policy of slow or ineffective impact and set forth to remove the protective measures without consulting stakeholders.

“The implementation of the auto policy requires sacrifice from all in the interest of growing the real sector. But such sacrifice has its limit. The protective tariff was designed to be reduced as the industry gained traction, but it’s not being nurtured to do so.”

On the state of the NAIDP bill, Mamudu, who is now the Managing Partner, Transtech Industrial Consulting, said the last information he had was that the bill was under expert review.

In his view, however, the reviewed draft of the NAIDP should be shared for stakeholders’ input, particularly the Nigeria Automotive Manufacturers Association (NAMA) before its final passage and signing into law.

Being the largest economy in Africa, Nigeria has in the past six years been under pressure from the OEMs to complete the implementation circle of its auto industry development policy. The OEMs could see Nigeria becoming an automotive manufacturing hub of the continent.

But as of the time of putting this story together, the nation’s auto policy remains under a dark silence. Even stakeholders are also in the dark.

In the meantime, while importers of used vehicles and new fully built units smile to the bank, the nation’s economy bleeds.

– Nigeria Auto Journal, December 2021

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CFAO Mobility Open Day to offer special deals on new vehicles, parts, diagnostics

Published

21 hours ago

April 10, 2026

Trends Admin

CFAO Mobility Open Day to offer special deals on new vehicles, parts, diagnostics

CFAO Mobility has announced plans to host the 2026 edition of its flagship CFAO Mobility Open Day, aimed at showcasing a wide range of innovative mobility solutions.

In a statement, the company said the event would take place on Thursday, April 30, 2026, at Harbour Point, Victoria Island, Lagos, from 9am to 6pm.

The Open Day is expected to bring together leading global automotive and equipment brands in a dynamic exhibition tailored to meet diverse mobility needs.

Participating brands are Toyota, BYD, Mitsubishi, Suzuki, Fuso, JCB, Howo, Sino Equipment, King Long, TechKing Tyres, Yamaha, Winpart and Auto Fast.

According to CFAO Mobility, attendees will experience an extensive display of products and services, ranging from brand-new vehicles and motorcycles to outboard engines, fleet management solutions, spare parts and aftermarket services.

The event, which is free and open to the public, will also feature test drives, professional vehicle diagnostics and exclusive spare-parts deals, offering participants a hands-on and engaging experience.

The company urged car enthusiasts, business owners and prospective buyers to take advantage of the Open Day to explore mobility solutions tailored to their personal and business needs.

With over 120 years of presence in Nigeria, CFAO Mobility remains a key player in the mobility and healthcare sectors.

It added that the Open Day reflects its continued commitment to delivering innovative, customer-focused mobility solutions.

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Jetour set to ignite Lagos with four-day automotive experience

Published

2 days ago

April 9, 2026

Trends Admin

Jetour set to ignite Lagos with four-day automotive experience

Lovers of sophisticated and elegant SUVs in Lagos are about to witness a combination of automotive engineering and urban lifestyle as Jetour Nigeria announces the hosting of a flagship event, “The Jetour Experience,” a four-day immersive festival designed to redefine how Nigerians interact with the road.

From April 16 to 19, 2026, The Podium in Lekki, Lagos, will be transformed into a high-energy hub where sleek design meets high-octane entertainment. This is not just a standard car show; it’s a curated lifestyle destination, says the organisers in a statement.

The four-day event is said to promise a fusion of horsepower, high fashion, and plenty of fun.

Tagged “The Jetour Experience,” the four-day extravaganza is not just about gleaming chrome and leather seats; it is a high-octane celebration aimed at blurring the lines between mobility and entertainment.

Specifically, it stated that the exhibition would feature test drives, virtual reality gaming, fitness sessions, and interactive activities with branded giveaways.

The statement added that the arena would buzz with entertainment, including contests and interactive games, giving guests the chance to win exclusive branded gifts and prizes.

In a massive show of force, Jetour says it is partnering with its seven prestigious accredited dealers—Elizade Nigeria Limited, New Era Autovehicle Services Limited, Kojo Motors, R.T. Briscoe, Tab Autos Limited, Mandilas Motors, and Germaine Auto Centre —to bring their full fleet to the public.

Whether you are an eco-conscious commuter or an off-road adventurer, the lineup has something for everyone, according to a statement by the Jetour Nigeria.

The Urban Explorers: X50 and X70

The Sophisticates: X70 Plus and X90 Plus

The Eco-Warriors: X70 PHEV and T2 PHEV (Plug-in Hybrids)

The Icons: The rugged T2 and the razor-sharp Dashing

Jetour is blurring the lines between mobility and entertainment. Running daily from 9:00 am to 7:00 pm, the event promises a packed itinerary designed to keep the adrenaline pumping.

Visitors will also push limits during test drives, explore virtual reality (VR) gaming such as foosball, and take part in curated fitness sessions.

In a creative masterstroke, the grand finale will feature a car runway fashion show. Attendees can expect a visual feast where automotive engineering meets sartorial elegance, reinforcing the idea that a Jetour is not just a vehicle but a fashion statement.

The firm stated, “Beyond the glitz, the event maintains a strong focus on safety. A dedicated panel discussion featuring stakeholders and officials from the Federal Road Safety Corps (FRSC) will explore road safety, tech-driven security, and the future of motoring in Nigeria.

“With its blend of adrenaline, artistry, and advocacy, Jetour Nigeria isn’t just hosting an event; it is creating a destination.”

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Soaring Fuel Prices Drive Nigerians Toward Electric Vehicles

Published

1 week ago

April 2, 2026

Trends Admin

Soaring Fuel Prices Drive Nigerians Toward Electric Vehicles

Rising fuel prices in Nigeria are accelerating interest in electric vehicles (EVs) as households, transport operators, and businesses seek cost-effective alternatives to petrol- and diesel-powered cars. Experts say the spike in petrol costs is no longer just an economic concern but a turning point, pushing electric mobility from a futuristic idea into a practical solution for everyday commuting and commercial use.

At the Abuja Compact on Electric Mobility Roundtable, stakeholders highlighted how increasing transport expenses are reshaping decisions, especially among commercial drivers and small business owners. Rising fuel costs are prompting many Nigerians to see EVs as a survival strategy rather than a luxury option.

Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, explained that the removal of fuel subsidies has widened the cost gap between petrol-powered vehicles and EVs. Charging an EV for a 200-kilometre journey costs around ₦4,500, compared to roughly ₦22,500 for petrol vehicles — a difference that offers a “strong economic incentive” influencing consumer choices. Ahmed added that the federal government is pursuing a balanced transition strategy supporting both compressed natural gas (CNG) and electric vehicles to encourage sustainable energy alternatives.

Financial solutions are helping Nigerians overcome the high upfront costs of EVs. Mohammed Abdul, Divisional Head at Alternative Bank, noted that lease-to-own, pay-as-you-go, and partnership schemes are making EVs accessible to drivers in the informal transport sector. These financing models allow gradual adoption while easing financial burdens.