Nigeria’s 40 auto plants produce below 5% capacity – NADDC

Nigeria's automotive industry is struggling to meet demand, with nearly 40 licensed vehicle assembly plants operating at less than five percent of their capacity, according to the National Automotive Design and Development Council (NADDC). The low production output is attributed to weak vehicle financing, low patronage, grey imports, macroeconomic pressures, and gaps in policy enforcement.

The country has an installed assembly capacity of over 600,000 units per year, but actual local output is only about five percent of this capacity. The majority of the demand for vehicles is still met by imported used vehicles, known as Tokunbo, rather than locally assembled new vehicles. The NADDC's Director-General, Joseph Osanipin, has called for the establishment of a National Automotive Credit Guarantee Fund to make locally assembled vehicles more affordable and accessible, as well as increased private-sector investment in compressed natural gas and electric vehicle infrastructure.

Brief written by urgent.news from Punch Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.