• Capacity of over 400,000 underutilized vehicles
The chief executive of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, said the Nigerian automotive sector accounts for an assembly capacity of 400,000 vehicles a year, but demand and financing challenges allow to maximize potential.
Aliyu, who spoke virtually at the inaugural Autocheck summit in Lagos, said the National Automobile Industry Development Plan (NAIDP) has been rolled out to revive vehicle manufacturing and parts components, but without yet achieving the desired objectives.
He said, “As we speak, more than 1 billion naira have been invested since 2019. The types of vehicles that are being assembled in Nigeria are not just gasoline vehicles, but both gasoline and electric vehicles. The lack of infrastructure and electricity contributes to the challenges of the sector.
The President of the Automobile Dealers Association of Nigeria (AMDON), Ajibola Adedoyin, said there are many opportunities in the automotive sector given its centrality to other sectors and the economy.
However, “it is sad to see that we do not want to face the reality in this country. We know that we can manufacture a new vehicle but we assemble the same one, which is expensive. If our ability is to build tricycles, let’s focus on that.
Earlier in his remarks, Autochek Managing Director Etop Ikpe said various stakeholders had worked in silos in the past and the automotive sector needed a tiered financing approach to reach its full potential. in Nigeria and across the continent.
Ikpe emphasized that finance is essential for the automotive ecosystem as it plays a critical role in reducing transport poverty and impacts the entire value chain including dealerships, workshops, small and medium-sized enterprises (SMEs) and ultimately the consumer.
He also highlighted the need to educate consumers on how to responsibly access credit and make the most of the financing solutions available to them, as well as other related services.
With operations across West and East Africa and a partner-led retail footprint in over 1,000 dealer and workshop partner locations, Autochek is committed to creating solutions for improve trade and synergy between the various stakeholders in the African automotive sector. Its products and services include facilitating access to automobile credit, quality maintenance/after-sales services, warranty solutions and transactional marketplaces.
West Africa SVP Mayokun Fadeyibi said the company was building the infrastructure to make car ownership more accessible and affordable for more Africans and this event brought together key stakeholders to engage the conversations needed to drive growth and opportunity in the African automotive sector.
Autochek Chief Operating Officer Timi Tope Ologunoe said the sector has not been able to realize its potential as all players play independently.