• About Us
  • Contact Us
  • Privacy & Policy
Wednesday, October 15, 2025
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
Advertisement
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
No Result
View All Result

Morocco, South Africa, Egypt Surpass Nigeria’s $210 Million Auto Industry

Vincent Amadi by Vincent Amadi
March 2, 2025
in Economy
Reading Time: 4 mins read
A A
0
Morocco, South Africa, Egypt Surpass Nigeria’s $210 Million Auto Industry
Share on FacebookShare on TwitterShare on WhatsappShare on EmailShare on Telegram


Nigeria’s $210 million automotive industry lags behind other countries such as Morocco, South Africa, and Egypt. This is due to low demand for Nigerian-made vehicles and over-reliance on imported used cars.
Statistics show that Nigeria produced about 2,034 vehicles worth an estimated $210 million in 2023, accounting for about 0.04% of the country’s gross domestic product (GDP). Meanwhile, Morocco’s automotive industry produced 535,825 vehicles worth $31.4 billion in 2023, accounting for 24% of the country’s GDP.
South Africa, the continent’s second-largest automotive producer, produced 633,337 vehicles worth an estimated $20 billion, contributing 5.3% of the country’s GDP. Egypt produced 23,754 vehicles worth $1.5 billion, contributing 0.31 percent to Egypt’s GDP.
In Nigeria, Nissan Motors, Honda Motor, Innoson Vehicle Manufacturing Company, Hyundai Motor Company, Ford Motor Company, GIC Motor Companies Ltd, JAC Motors, KIA Motors, Dangote, Sinotrucks, Elizade, Lanre Shittu Motors, Milkano, North, PAN Nigeria Limited, Milkano International, VON Automobile Nigeria are well-known car manufacturers and assemblers.
In Morocco, over 250 automotive companies and supplier companies operate, including Stellantis, Opel, BYD, Fiat, and French car manufacturer Renault.
The Moroccan government is offering subsidies of up to 35% to manufacturers to build factories and expand ports, free trade zones, and rail infrastructure to enable the training of skilled workers. This puts the industry in a good position to attract investment.


South Africa is home to companies such as BMW, Mahindra, MAN, Stellantis, Nissan, Ford, Toyota, Volkswagen, Mercedes and Volvo Trucks. In 1995, the South African government launched the Motor Industry Development Programme (MIDP) to promote vehicle and parts manufacturing through exports. This was followed by the Automotive Production Development Programme (APDP) to increase local share.
Egypt is currently home to the Bayern Automotive Group, El Nasr Automotive Manufacturing Company, Al Mansour Automotive Company, Mercedes Egypt, GB Corporation, and Commercial Vehicle Manufacturing Company.
According to the National Automotive Design and Development Council (NADDC), Nigeria’s auto assembly plants have a total annual production capacity of 500,000 units, but despite a total investment of over 500 billion naira, production is only about 2% of installed capacity.
“We are not getting the needed patronage from the Nigerian market, which explains why our plant is assembling below capacity at the moment. We don’t have the customers that we expected in Nigeria,” said Takashi Nakajima, Managing Director of Honda Automobiles West Africa (HAWA), during a recent NADDC visit to the plant in Ota, Ogun State.
He said Nigerian automakers produce for sale, not for storage, so they need a market and demand. “We want the government to restrict the importation of used cars and look into auto financing. The interest rate is very high and can discourage customers from buying new cars. Therefore, we want government to come in here to support customers,” he said.
Moreover, HAWA’s Head of Sales, Marketing, and Logistics, Remi Adams, said Honda’s factory has an installed capacity of 10,000 units per year but currently produces only about 2,000 units per year.
He blamed Nigerians for importing used and salvaged cars, damaging the operations of local assembly plants.
According to the National Bureau of Statistics, passenger vehicle imports into Nigeria increased by 224.67% over 2022 to 1.47 trillion naira.
NADDC Executive Director Joseph Osanipin said the contribution of Nigeria’s automotive industry to GDP and job creation remains very low compared to Morocco and South Africa.
“We need to support locally-made vehicles. By choosing made-in-Nigeria cars, you are investing in the future of our nation. Let us consume what we produce and produce what we consume,” he said.

Benneth Ejindu, a director of the Nigerian Association of Automotive Manufacturers (NAMA), said Nigeria’s automotive industry has been underperforming despite its huge potential and abundant raw material resources. He said Nigeria can build the industry based on domestic demand and exports as an added advantage. Ejindu said Nigeria needs to sign the NAIDP 2024 bill.
He further said the country should develop and implement a master plan for the production of raw materials and parts for the automotive industry and promote CKD assembly with contract manufacturing to expand automotive production.
He noted that Nigeria can produce welding parts such as exhaust systems, seat frames, electrical parts such as batteries, indicators, wiring harnesses, tyres, hoses, fan blades, seat foams, oil seals, hoses and other plastic and rubber parts such as grilles, etc.
He said parts such as radiators, cables, filters, brake pads/linings, windscreens, side windows, fibreglass parts, and paints should not be imported but produced locally.
Meanwhile, a former government adviser on automotive policy, Luqman Mamudu, said the importation of used cars was undermining local car production. To turn the situation around, he said Nigeria needs to pass the NAIDP Act 2024 by 2034 to gain investor confidence.
He recommended that all imported used cars, including wrecked cars, be accompanied by a certificate of integrity from the country of origin.
Mamudu called on the government to establish a 100 billion naira intervention fund to be used as loans for the purchase of vehicles manufactured exclusively in Nigeria.
He said loans should only be given to commercial vehicle fleet operators to bring large numbers of ride-sharing services, buses, and trucks into Nigeria to contain rising transport costs and curb inflation.

Tags: business
Vincent Amadi

Vincent Amadi

Related Posts

Dangote Refinery distributes petrol to retailers at N850 per litre
Economy

Dangote Refinery distributes petrol to retailers at N850 per litre

8 hours ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

We never imported bad fuel – Dangote Refinery

4 days ago
Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn
Economy

Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn

1 week ago
BREAKING NEWS: PENGASSAN Declares Nationwide Strike.
Economy

BREAKING NEWS: PENGASSAN calls off strike

2 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

NATIONS NEWS

National

I didn’t nominate candidate for INEC chair – Wike

8 hours ago
Dangote Refinery distributes petrol to retailers at N850 per litre
Economy

Dangote Refinery distributes petrol to retailers at N850 per litre

8 hours ago
Gov Mbah’s defection to APC incredible – Bode George
National

Gov Mbah’s defection to APC incredible – Bode George

9 hours ago
Peter Obi Can Return to PDP Without Wike Obstruction – Jacob Mark
National

Defections: Our strength in grassroot support not governors – PDP

9 hours ago
Makinde to party members: Have faith, PDP will rise again
National

Makinde to party members: Have faith, PDP will rise again

1 day ago
Ohanaeze youths back Gov Mbah’s defection to APC
National

Ohanaeze youths back Gov Mbah’s defection to APC

1 day ago

POLITICS

Gov Mbah’s defection to APC incredible – Bode George

Gov Mbah’s defection to APC incredible – Bode George

9 hours ago
Peter Obi Can Return to PDP Without Wike Obstruction – Jacob Mark

Defections: Our strength in grassroot support not governors – PDP

9 hours ago
Despite Herdsmen attack, Enugu is the safest State in Nigeria-Governor Peter Mbah

Mbah’s APC defection move rips Enugu PDP apart

4 days ago
PDP Governors Hold Crucial Caucus Ahead NEC Meeting

PDP to Senate: Don’t hurry Amupitan confirmation, Nigerians deserve credible INEC chair

4 days ago
2027: Defections can’t stop us – PDP declares

2027: Defections can’t stop us – PDP declares

5 days ago
Seven Akwa Ibom Lawmakers Defect to APC, Citing Party Divisions

2027: ADC’s hope of victory just hallucination – APC

6 days ago

YOUR ECONOMY

Dangote Refinery distributes petrol to retailers at N850 per litre
Economy

Dangote Refinery distributes petrol to retailers at N850 per litre

8 hours ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

We never imported bad fuel – Dangote Refinery

4 days ago
Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn
Economy

Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn

1 week ago
BREAKING NEWS: PENGASSAN Declares Nationwide Strike.
Economy

BREAKING NEWS: PENGASSAN calls off strike

2 weeks ago
You’re scaring off investors – Senator Karimi warns PENGASSAN over feud with Dangote Refinery
Economy

You’re scaring off investors – Senator Karimi warns PENGASSAN over feud with Dangote Refinery

2 weeks ago
BUA Chairman: Naira Will Settle at N1,300/$ by December 2025
Economy

BUA Chairman: Naira Will Settle at N1,300/$ by December 2025

3 weeks ago

E & P

2026 World Cup playoffs: Super Eagles likely to play Gabon
Sports

2026 World Cup playoffs: Super Eagles likely to play Gabon

by Steven Atogi
9 hours ago
0

The Super Eagles awaits FIFA next rankings to confirm their opponents for the 2026 World Cup playoffs. Nigeria defeated Benin...

EPL: They’ll be beaten – Paul Scholes predicts winner in Liverpool vs Man Utd

EPL: They’ll be beaten – Paul Scholes predicts winner in Liverpool vs Man Utd

1 week ago
EPL: Amorim should use Mbeumo as striker over Sesko — Owen

EPL: Amorim should use Mbeumo as striker over Sesko — Owen

2 weeks ago
Xavi Hernandez hinted to replace Ruben Amorim at Old Trafford

Xavi Hernandez hinted to replace Ruben Amorim at Old Trafford

2 weeks ago
Dembele wins 2025 Ballon d’Or ahead of Yamal [Full list]

Dembele wins 2025 Ballon d’Or ahead of Yamal [Full list]

3 weeks ago
Paul Scholes Defends Amorim’s System, Slams Manchester United Recruitment System

Paul Scholes Defends Amorim’s System, Slams Manchester United Recruitment System

4 weeks ago

YOUR THOUGHT & HISTORY

NASS Rubber-Stamp Tinubu: PDP Chieftain Blasts Legislature, Calls Akpabio ‘Unfit’
National

NASS Rubber-Stamp Tinubu: PDP Chieftain Blasts Legislature, Calls Akpabio ‘Unfit’

by Steven Atogi
1 week ago
The Union, the Tycoon, and the State: Dangote versus PENGASSAN War, A New Precedent for Nigerian Labour
Opinion

The Union, the Tycoon, and the State: Dangote versus PENGASSAN War, A New Precedent for Nigerian Labour

by Odini Brains
2 weeks ago
HOW MR EAZI, OTEDOLA’S SON-IN-LAW, BUILT AN 18-COUNTRY EMPIRE
Opinion

HOW MR EAZI, OTEDOLA’S SON-IN-LAW, BUILT AN 18-COUNTRY EMPIRE

by Odini Brains
1 month ago
Mr Eazi and Temi Otedola: A Love Story That Traveled Three Continents
National

Mr Eazi and Temi Otedola: A Love Story That Traveled Three Continents

by Odini Brains
1 month ago
The Rise And Fall Of Sports Institute, Isaka
Columns

The Rise And Fall Of Sports Institute, Isaka

by Tammy Opoki
2 months ago

Who we are

Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history

Welcome to Umpire News, your go-to online newspaper dedicated to broadening perspectives and expanding the horizons of our numerous readers. Read more

Browse by Category

  • Columns
  • Economy
  • Editorial
  • Entertainment
  • International
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Trends

Recent News

I didn’t nominate candidate for INEC chair – Wike

October 15, 2025
Dangote Refinery distributes petrol to retailers at N850 per litre

Dangote Refinery distributes petrol to retailers at N850 per litre

October 15, 2025
  • About Us
  • Contact Us
  • Privacy & Policy

© 2024 Copyright Umpirenews. All rights reserved

No Result
View All Result
  • Home
  • National
  • Economy
  • Politics
  • Sports
  • Entertainment
  • Editorial
  • Opinion
  • Columns

© 2024 Copyright Umpirenews. All rights reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

🤑Join & Get Our Easter Gifts 🤑

Enter your NAME & Email NOW!!

Be among the 1st 100 lucky WINNERS to win our Amazing GIFTs this Easter Period as you READ our Daily hot NEWs & make meaningful comments and follow us on our social media handles.

Name
Enter your email address