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, Nord Automobiles, Oluwatobi Joshua Ajayi
Nord Automobiles was founded by Oluwatobi Joshua Ajayi. He earned a degree in Soil Science and Farm Mechanization from Olabisi Onabanjo University and later completed an MBA at Lagos Business School, adding an EMBA certificate from IESE Business School, Spain.
After serving in the NYSC program with Mercedes‑Benz Nigeria, he swiftly rose to head the van division, increasing market share from less than 1% to around 7% between 2013 and 2015 and earning the Mercedes‑Benz Best Sales Performance for Africa award in 2013.
In 2015, he co‑founded Jetvan Automobiles Limited and led that until founding Nord Automobiles in 2018 with a vision of creating an affordable, durable, locally assembled vehicle brand.
Although the Nord brand was conceived in 2016 and vehicles were unveiled in December 2020. Nord operates its main assembly facility in Sangotedo; the company also owns an additional site in Epe.
It has an additional plant within the University of Lagos grounds that was opened in late 2022 for local assembly and possible component manufacturing. The company has locations in 4th Avenue, Gwarimpa, and Tito Broz Street, Asokoro, Abuja.
Nord assembles various vehicles in Nigeria, rebadging Chinese-made models, which include the A3 sedan, A5, and upcoming A7 and A9 SUVs, Tank, Max, and Tusk pick-up trucks, and Yarn, Tripper, and Flit buses/shuttles.
