The National Automotive Design and Development Council (NADDC) says Nigeria is pursuing policy reforms, investment and stronger industry collaboration to deepen local content and revive automotive manufacturing.
NADDC Director of Media, Mrs Susan Taiwo, disclosed this at a Human-Centered Data and AI Master Class organised for members of the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Abuja.
Taiwo said Nigeria’s automotive market has an estimated annual demand of 800,000 vehicles, with imported used vehicles accounting for more than 85 per cent. She added that the country has over 600,000 vehicles in installed annual assembly capacity across more than 30 licensed plants, but actual production remains at about five per cent.
She attributed the low capacity utilisation to limited patronage, grey imports, foreign exchange volatility and wider economic pressures. According to her, Nigeria is targeting 40 per cent local content by moving beyond basic vehicle assembly to component manufacturing and deeper integration.
Taiwo identified batteries, tyres, glass, brake pads, exhaust systems and wiring harnesses as areas with strong potential for local production. She also highlighted vehicle financing, government procurement and private-sector investment as key factors that could boost demand for locally assembled vehicles.
She said the transition to compressed natural gas (CNG) and electric mobility offered further opportunities for new automotive value chains, while stronger local production could position Nigeria as a regional automotive hub under the African Continental Free Trade Area (AfCFTA).
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