Nigerians could be driving more brand-new, locally made cars within the next decade if the right policies and financing tools are in place, according to Oluwatobi Ajayi, chief executive of Nord Motors.
Speaking in an interview with Channels Television, Ajayi warned that Nigeriaโs growing appetite for imported used cars threatens to drain foreign exchange, stunt job creation, and stall industrial growth. โNobody loves secondhand cars. Itโs a condition forced by weak earning power,โ he said.
Nigeria spends billions annually importing vehicles, even as local output remains negligible. By contrast, Morocco produced 535,000 vehicles in 2023 and South Africa 633,000, while Nigeria assembled just 234 units. โWe are a country of over 200 million people, yet our auto output is insignificant,โ Ajayi said. โIf we want jobs, we must industrialise.โ
Ajayi argued that Nigerians buy about 500,000 vehicles annually, and channeling a fraction of that demand to local producers would be transformative. He outlined a three-point plan: tariffs that favor local assembly, mandatory government purchases of locally made cars, and strong consumer auto financing.
โTariff is the most important because it gives guaranteed volume,โ he explained. He suggested keeping duties low for used cars older than five years, buses, and heavy trucks, but raising them sharply for new cars and SUVs that elites import. โIn five years, we will have a thriving secondhand market for Nigerian-made cars. In ten years, we wonโt need to import at all,โ he said.
Nord Motors, founded in 2018, has seen rapid growth despite policy uncertainty and stiff competition. Ajayi said four of the five biggest companies listed on the Nigerian Stock Exchange now buy Nord vehicles. Revenue has risen, tax payments have grown, and salaries have increased fivefold in just over a year.
But challenges remain. Ajayi cited risks from foreign exchange swings, policy flip-flops, and the struggle to retain top engineering talent. โItโs difficult to hold world-class talent when opportunities abroad look more attractive,โ he said. Still, he remains optimistic, pointing to Nigeriaโs large and youthful population.
โThe auto industry is the mother of industries. If Nigeria gets this right, we create jobs across upholstery, batteries, fabrics, and technology. We donโt just build carsโwe build an economy,โ he said.
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