Nigeria's Auto Plants Operate Below 5% Capacity: NADDC

Nigeria's National Automotive Design and Development Council (NADDC) reported that the country's nearly 40 licensed vehicle assembly plants, which have a combined installed capacity of over 600,000 vehicles annually, are currently producing less than five percent of their potential output. The Director-General of the NADDC, Joseph Osanipin, disclosed this information in a statement, attributing the low capacity utilization to factors such as weak vehicle financing, low patronage, grey imports, macroeconomic pressures, and gaps in policy enforcement.

He noted that over 85 to 90 percent of Nigeria's annual vehicle demand is met by imported used vehicles, known as Tokunbo, rather than locally assembled new vehicles. Osanipin emphasized the need for a National Automotive Credit Guarantee Fund to improve access to vehicle financing and called for increased private-sector investment in compressed natural gas and electric vehicle infrastructure as growth opportunities for the automotive industry.