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:
Dangote Sinotruk was founded in 2014 as a US$100 million joint venture between Dangote Industries Limited (holding 60%), Sinotruk (China) (30%–35%), and a Nigerian investor, Andas (5%). Dangote Sinotruk West Africa Limited is one of Nigeria’s largest indigenous heavy-vehicle assembly ventures.
DSWAL’s truck assembly plant is located along Oba Akran Avenue in Ikeja, Lagos, on the former site of the Nigerian Textile Mills. The facility was officially commissioned in June 2024, with state-of-the-art CKD/SKD assembly lines, welding booths, painting sections, and fabrication bays for trailers, tipper bodies, and truck cabins.
The plant currently manufactures four main categories of commercial vehicles: heavy-duty trucks, medium trucks, light trucks, and semi-trailers. With in-house welding and fabrication capabilities, DSWAL aims to gradually achieve 40%–60% local content, especially as the Ajaokuta Steel Project comes online.
When operating one work shift per day, the plant is capable of assembling 15 to 16 trucks each day. This adds up to about 10,000 trucks a year using the CKD (Completely Knocked Down) method, where vehicle parts are imported and assembled locally. The company plans to expand capacity to 13,000 units per year once the new CKD plant is fully operational and running dual shifts.
