Federal Government reaffirms push for domestic auto manufacturing

Must read

- Advertisement -spot_img

The Federal Government has reinforced its support for Nigeria’s automotive manufacturing ambitions following a facility tour by the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, at Elizade JAC Autoland’s operations in Lagos.

During the visit, the minister inspected the company’s headquarters and its expanded Ikotun assembly plant, which now houses two advanced production lines — a single-track line for passenger vehicles and a dual-track system dedicated to industrial vehicles.

The expansion significantly increases Elizade JAC’s local assembly capacity, positioning the company to respond to rising demand for domestically assembled vehicles as Nigeria seeks to reduce dependence on used imports.

Speaking during the tour, Oduwole described the investment as aligned with the Federal Government’s industrialisation agenda, noting that companies reinvesting profits into local production are critical to building a resilient manufacturing base.

She cautioned against Nigeria’s heavy reliance on used vehicle imports, warning that many of the vehicles entering the country are refurbished after damage abroad, posing safety and reliability risks to consumers.

Read also

The minister said the government is committed to supporting manufacturers that prioritise quality, local value addition and consumer protection, adding that strengthening domestic auto production is central to job creation and industrial growth under the current economic reforms.

Elizade JAC Autoland said its expansion strategy is driven by a long-term plan to shift consumer preference away from used imports toward new, locally assembled vehicles that offer better reliability, warranty coverage and after-sales support.

The company’s management said its 2026 market strategy will focus on improving affordability, expanding service coverage and educating consumers on the long-term cost benefits of new vehicles, including lower maintenance costs, improved fuel efficiency and stronger resale value.

Industry analysts note that sustained policy support, access to financing and stable input costs will be critical to scaling Nigeria’s automotive manufacturing ecosystem and making locally assembled vehicles competitive in a price-sensitive market.

adverts@smallbusinessinsights.ngspot_img

More News

- Advertisement -spot_img

Updates