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, Jet Systems Automobile, Chidi Ajaere
Jet Systems was founded by Chidi Ajaere, the son of the late Edwin Ajaere, the founder of God is Good Motors (GIGM), a leading intercity transportation company in Nigeria
He attended Covenant University in Ota, Ogun State, for his tertiary education. Chidi furthered his studies at Niagara College in Canada and Griffith University in Australia, where he honed his business acumen
Chidi Ajaere returned to Nigeria following the death of his father, taking charge of the family business and assuming the role of Executive Chairman at GIGM.
In 2012, Chidi founded GIG Logistics, a subsidiary of GIG Group, to provide efficient and reliable logistics services. The company has since expanded its operations internationally, with service centers in Nigeria, Ghana, the United States, and China.
Chidi founded Jet Systems Automobile, a Nigerian electric vehicle (EV) manufacturer in 2018. The company focuses on producing sustainable, locally made EVs to address Nigeria’s transportation challenges
The company’s headquarters and main assembly plant are located at KM 46, Lekki-Epe Expressway, Sangotedo, Ajah, Lagos, Nigeria. This facility is equipped for the production of electric and compressed natural gas (CNG) vehicles, including ambulances, and vans. Their product lineup includes 14-seater electric buses, electric ambulances, and electric vans, catering to both public transportation and commercial sectors.
Jet Systems has partnered with the Delta State Government to deploy EVs for mass transportation and establish solar-powered charging stations across the state.
The assembly plant in Lagos has an estimated annual production capacity of 5,000 vehicles, with plans for expansion to meet growing demand for electric vehicles in Nigeria.
