Nigeria’s auto industry stands at a critical juncture, full of untapped potential but grappling with structural imbalances.
Once thriving in the 1960s and 1970s due to strong government backing, the sector’s trajectory was altered by privatization in the 1980s, leading to a steep decline in local vehicle production.
According to the former Minister of Trade, Industry and Investment, Doris Uzoka-Anite, the industry contributes only 0.04% to the country’s GDP, despite having the capacity to contribute up to 25%.
The minister also noted that while only about 10,000 people are currently employed in the sector, the industry could employ up to 300,000 Nigerians if adequately revived.
According to Nairametrics, Nigeria imported N546.79 billion worth of vehicles in 2020, which increased to N695.40 billion in 2021. However, imports declined slightly to N655.69 billion in 2022 before soaring by 124.7% to N1.47 trillion in 2023, fueled by increased demand and inventory buildup by auto dealers.
In 2024, imported cars saw a sharp 14.3% drop to N1.26 trillion, a reversal of the previous year’s boom, reflecting the deepening impact of economic instability on consumer spending.
The gap between vehicle demand and local production is an area of concern. Reports from the International Trade Administration indicate that Nigeria needs about 720,000 vehicles annually, but domestic assemblers can only supply 14,000 units, leaving the country heavily reliant on used imports.
Against this backdrop, a number of companies are making bold moves to restore Nigeria’s automotive legacy.
Here are the key players driving Nigeria’s vehicle assembly industry:
Founder Saglev Electromobility, Dr. Sam Gbenga Faleye
Saglev Electromobility, often referred to as Saglev, was founded by Dr. Sam Gbenga Faleye.
The Nigerian-born, U.S.-based physician founded Saglev Inc. in Delaware, USA, with a mission to accelerate the transition from fossil fuel vehicles to zero-emission electric vehicles in emerging markets. His strategy focuses on partnering with rideshare operators, corporate fleets, and public transport systems to drive large-scale EV adoption.
Dr. Faleye earned his Doctor of Medicine from the University of Ilorin and completed his Internal Medicine residency at Howard University Hospital in Washington, D.C. He has been a Board-Certified Internist in private practice since 1998 and a Fellow of the American College of Physicians since 2005. He is currently pursuing a Ph.D. in Clinical Informatics at the University of Tennessee Health Science Center
His diverse ventures include U.S.-based real estate, securities trading, and a deep commitment to renewable energy as both a moral responsibility and entrepreneurial opportunity.
In December 2023, Saglev began operations at its Imota, Ikorodu, Lagos assembly plant. According to the company, it is the first automotive assembly plant in sub-Saharan Africa to solely assemble only Electric Vehicles.
The facility was approved by the National Automotive Design and Development Council (NADDC), which handles both Semi-Knocked Down (SKD) and Complete Knocked Down (CKD) assembly for a range of electric sedans, SUVs, pickups, and buses.
Through partnerships with Dongfeng Motor Corporation, Saglev has introduced models like the VOYAH luxury EV series, the R6 electric pickup, and the M-HERO 917 electric SUV, alongside public transport-oriented BRT buses.
Saglev’s Lagos plant manufacturing facility boasts a minimum capacity of 2500 units annually, with the capacity to scale up to 10,000 units per year through expanded shifts. Beyond manufacturing, Saglev is also building charging infrastructure in collaboration with retail and energy partners, tackling one of the biggest barriers to EV adoption in Nigeria.
