Auto Imports Drain Nigeria’s Economy as Vehicle Spare Parts Bill Hits N6.54tn

Nigeria’s ambition to build a thriving local automotive industry is facing mounting pressure as the country’s spending on imported vehicles and spare parts soared to N6.54 trillion between 2023 and 2025, raising fresh concerns over the survival of indigenous auto manufacturing.

The Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, disclosed the figures in Lagos on Tuesday during the opening of the West African Automotive Summit, where industry stakeholders warned that the nation’s dependence on foreign automotive products was deepening despite ongoing efforts to promote local assembly.

According to him, data obtained from the National Bureau of Statistics showed that imports of transport equipment and spare parts rose sharply from N3.15 trillion in 2023 to N6.54 trillion in 2025, representing a 107 per cent increase within two years.

He added that vehicle imports alone gulped more than N4.3 trillion during the period, underscoring the huge outflow of foreign exchange from Africa’s largest economy.

Osanipin said the trend reflects growing consumer preference for imported vehicles amid persistent concerns over maintenance support, spare parts availability, and technical service delivery within the local automotive ecosystem.

He warned that unless Nigeria develops a reliable after-sales structure capable of supporting locally assembled vehicles, the country may continue to struggle with low patronage of domestic brands and rising dependence on imports.

Speaking on the summit theme, “After-Sales as a Growth Engine,” the NADDC boss argued that the future of the automotive sector extends beyond vehicle sales, stressing that maintenance services, warranties, technical support, and customer satisfaction are now central to industry growth globally.

He noted that countries with strong automotive industries built extensive after-sales networks that not only boosted consumer confidence but also stimulated local manufacturing, job creation, and investment.

According to him, weak after-sales systems discourage buyers, reduce repeat purchases, and undermine investor confidence in the sector.

Osanipin also said the transition toward electric and hybrid vehicles makes technical capacity development more urgent, as mechanics and service personnel would require new skills to manage emerging vehicle technologies.

He disclosed that NADDC is currently partnering with industry stakeholders on technical training, skills acquisition programmes, and policy initiatives aimed at improving service standards across the automotive value chain.

The council further urged automobile companies, dealers, and service providers to strengthen customer support systems and expand access to genuine spare parts nationwide in order to improve confidence in locally assembled vehicles.

Industry stakeholders at the summit also called for stronger local content policies, improved maintenance culture, enhanced technical expertise, and greater collaboration across West Africa to drive sustainable automotive growth in the region.

ABC Transport Unveils Archive Centre to Showcase Decades of Innovation, Excellence

In a remarkable celebration of legacy, innovation and corporate heritage, ABC Transport Plc officially unveiled its Historic and Archive Centre on Thursday, April 30, 2026, at the company’s corporate headquarters in Owerri, Imo State.

The unveiling, which coincided with the birthday celebration of the company’s founder, Frank Nneji, marked another significant milestone in the 33-year journey of one of Nigeria’s most innovative and diversified transport and logistics companies.

Founded on February 13, 1993, ABC Transport Plc has evolved from a visionary transport company into a nationally recognised brand known for pioneering modern transport solutions, operational excellence and customer-focused innovation across Nigeria and West Africa.

The newly commissioned Historic and Archive Centre was established to document, preserve and showcase the company’s rich history and transformational journey over the decades.

The facility houses an extensive collection of historical artefacts, awards, photographs, archival documents, video recordings and memorabilia from some of the company’s defining moments.

Among the notable exhibits are memorabilia from the commissioning of the first ABC coach, the launch of Nigeria’s first ultra-modern transport terminal, the expansion into regional operations through Coach West Africa, and several landmark achievements that helped redefine road transportation and logistics services in Nigeria.

Over the course of its 33-year history, ABC Transport Plc has recorded several groundbreaking milestones, including:

1993 – Launch of the company’s first Owerri-Lagos route

1996 – Introduction of ABC Cargo Express services

1998 – Launch of Sleeper Coach Services

1999 – Partnership with NIPOST for mail transportation services

2000 – Establishment of the Driver Training Academy and commencement of e-ticketing services

2001 – Commissioning of the first ultra-modern transport terminal in West Africa, located in Abuja

2003 – Celebration of the company’s 10th anniversary and commissioning of Terminal 3 in Amuwo Odofin, Lagos

2004 – Launch of Coach West Africa, pioneering regional transport routes across West Africa

2006 – Listing on the Nigerian Stock Exchange and collaboration with state governments on municipal transport projects

2007 – Launch of the Shuttle Service and opening of the Port Harcourt Mega Terminal

2008 – Establishment of ABC Haulage and commencement of Sprinter Services

2012 – Launch of the Undergraduate Scholarship Award Scheme

2014 – Rollout of the first trucks from the company’s assembly-line subsidiary

2023 – Corporate rebranding, incorporation of ABC Cargo Express, and celebration of the company’s 30th anniversary

2026 – Celebration of 33 years of operations and unveiling of the Historic and Archive Centre

Designed as both a heritage and educational facility, the centre provides a serene and intellectually engaging environment where students, researchers, transport enthusiasts, business leaders and members of the public can learn about the evolution of the transport industry through the lens of ABC Transport’s journey. The facility also reflects the company’s commitment to institutional memory, leadership, innovation and nation-building.

The event was intimate yet deeply symbolic, bringing together alumni staff, pioneer employees, current management and staff, strategic partners, family members and longtime associates of the organisation who played significant roles in its early development and sustained growth.

Guests at the occasion shared memories and reflections on the company’s humble beginnings, transformational milestones and enduring impact on Nigeria’s transportation sector. The celebration also featured a special birthday cake-cutting ceremony in honour of the founder, whose visionary leadership laid the foundation for the company’s success story.

Speaking during the unveiling ceremony, the Group Managing Director/CEO of ABC Transport Plc, Jude Nneji, described the Historic and Archive Centre as a strategic investment in preserving institutional heritage and inspiring future generations.

“This Historic and Archive Centre is more than a collection of memories; it is a living testament to resilience, innovation, vision and the pioneering spirit that built ABC Transport over the last 33 years.

“As we continue to evolve as a modern transport and logistics company, it is important that we preserve the stories, sacrifices, milestones and achievements that shaped our journey.

“We want young people, students, professionals and future entrepreneurs to walk into this centre and understand that great institutions are built through vision, consistency, courage and service. This centre ensures that the legacy of our founder and the collective efforts of everyone who contributed to this journey will continue to inspire generations to come,” he said.

The unveiling of the Historic and Archive Centre represents yet another bold step in ABC Transport Plc’s continued commitment to excellence, innovation and legacy preservation as the company positions itself for the future while honouring its storied past.

As ABC Transport celebrates 33 years of transformational impact, the company remains steadfast in its mission to deliver safe, reliable and innovative transport and logistics solutions while continuing to shape the future of mobility and logistics in Nigeria and beyond.

Launch Design, Hybrid Motors Unveil Massive EV Assembly Plants for Lagos, Abuja

Nigeria’s ambition to become a major player in Africa’s electric vehicle industry has received a major boost following a landmark partnership between Chinese automotive engineering firm Launch Design Shanghai and Hybrid Motors Nigeria.

The two companies have signed a strategic agreement to establish electric vehicle manufacturing and assembly plants in Lagos and Abuja, a move expected to deepen local automobile production, accelerate technology transfer and strengthen Nigeria’s transition to cleaner transportation.

The partnership centres on the development of “Acely,” Hybrid Motors Nigeria’s indigenous vehicle brand tailored specifically for Nigerian roads, climate conditions and consumer needs.

Signed in Shanghai on May 8, 2026, the agreement is being positioned as one of the most significant collaborations yet in Nigeria’s emerging EV sector, combining Chinese engineering expertise with local manufacturing ambitions.

Under the arrangement, the companies plan to build two production facilities with a projected combined annual output of 70,000 vehicles at full capacity.

The Lagos plant, located along the Lekki-Epe corridor, will serve as the primary production and assembly hub with a planned capacity of 50,000 units yearly. Its proximity to the Lekki Deep Sea Port is expected to support exports to West African markets including Ghana, Benin, Togo and Côte d’Ivoire.

The Abuja facility, to be situated within the Free Zone Business Area of Centenary Economic City, will function as a secondary manufacturing and technology centre with an annual production target of 20,000 units.

The location is expected to enhance access to Northern Nigeria and neighbouring Sahel markets while benefiting from free-zone incentives and strategic trade routes.

Executives of both companies described the alliance as a transformative step capable of reshaping Nigeria’s automotive landscape.

Chief Executive Officer of Hybrid Motors Nigeria, Mr. Jubril Arogundade, said the partnership represents a major leap toward building a globally competitive automobile industry rooted in local innovation.

“This partnership is more than a business agreement; it is a commitment to building Nigeria’s automotive future,” he said.

“With Acely, we are proving that world-class vehicles can be conceived, designed and assembled right here in Nigeria by Nigerians for Nigerians.”

Chief Executive Officer of Launch Design Shanghai, Mr. Wang Xun, said the collaboration combines advanced automotive engineering with strong local market understanding.

“Together, we are not just building vehicles; we are building an industry,” he said.

Launch Design Shanghai is expected to provide engineering support spanning vehicle architecture, manufacturing process development, design optimisation and quality assurance systems.

The companies said the project would also focus on local workforce training, supply chain development and gradual localisation of vehicle components as production expands.

According to both firms, Acely vehicles will feature market-specific designs, energy-efficient systems and increasing integration of electric and hybrid propulsion technologies suited for Nigerian driving conditions.

Industry observers say the partnership aligns with Nigeria’s National Automotive Industry Development Plan and could help reduce dependence on imported vehicles while creating new jobs and boosting industrial diversification.

The companies added that the dual-facility strategy would improve operational efficiency, reduce logistics costs and position Nigeria as a growing hub within Africa’s automotive value chain.

Describing the agreement as a defining moment for the country’s auto industry, Arogundade said the Lagos and Abuja plants would lay the foundation for “a new era of mobility” driven by local manufacturing and sustainable transportation solutions.