The Nigerian economy has displayed a healthy growth for some years now, as shown by its increasing industrial output, the growing number of businesses as well as consumer demand.
In addition, due to Nigeria’s still limited industrial infrastructure, there is always a high demand for imports, especially of automobiles.
This means that there are many opportunities in the international automobile market in Nigeria. Exporting cars to Nigeria is becoming increasingly common, and presents a growing opportunity for investment.
As reported by Export.gov, the automotive market in Nigeria is growing. In 2015, demand for automobiles was over 675,000 units. In 2017, demand rose to 880,000 units in 2017. The current estimate is between 500,000 to 1,000,000 cars per year.
Automobile imports made up to 11.5% of all international imports in 2017. The total economic value of automobiles imported into Nigeria in 2017 was 6.9 billion dollars, with 2.9 billion dollars just from passenger vehicles.
This is due to the lack of capacity by local companies to mass produce automobiles at a rate that can meet consumer demand. However, the Nigerian government has plans to change this situation.
As a matter of fact, since 2014, the government pushed for local production of vehicles. Such efforts involved increasing import tariffs, huge investments and funding. The government also established the NAIDP (Nigerian Automotive Industry Development Plan).
The resulting plan involved major funding for 35 companies with the objective of producing around roughly 400,000 units in 2017. The result, however, was far lower than expected. The current production rate per year is estimated to be roughly 10,000-50,000 units.
As a result, consumer demand for automobiles continues to be met by international makes like Toyota, Honda, Kia, Ford, and others.
These brands take up most of the market in Nigeria