Nigeria’s Auto Industry at an Inflection Point: Indigenous Manufacturers Drive Revival

Nigeria’s automotive industry stands at a critical juncture, balancing vast potential against persistent challenges. In the 1960s and 1970s, government support fueled a thriving sector, but privatization in the 1980s led to a sharp decline in domestic vehicle production.

Today, the industry contributes just 0.04% to Nigeria’s GDP, far below its 25% potential, and employs only 10,000 workers compared to a possible 300,000.

The market reflects this underperformance. Nigeria’s annual vehicle demand reaches 720,000 units, yet local assembly fulfills only 14,000, leaving imports to bridge the gap. In 2023, vehicle imports surged to ₦1.47 trillion, a 124.7% increase year-on-year, though economic pressures reduced this to ₦1.26 trillion in 2024, highlighting the need for stronger domestic production.

Innoson Vehicle Manufacturing (IVM), founded by Innocent Chukwuma, is spearheading a revival. Starting with motorcycle parts in the 1980s and later plastics manufacturing, IVM began vehicle assembly in 2010 at its Nnewi, Anambra headquarters. The company has expanded with a CNG/LNG conversion plant in Naze-Owerri, an agricultural tractor facility at UNN’s Lion Science Park, and a planned assembly plant in Freetown following a $4.7 million export deal with Sierra Leone.

IVM’s diverse portfolio includes sedans, SUVs, commercial trucks, and specialized vehicles for military and ambulance use. Recent innovations include locally made three-wheelers in 2022 and Nigeria’s first indigenous electric vehicle in 2024. Exporting to seven African countries, IVM is not only revitalizing Nigeria’s automotive sector but also establishing regional manufacturing leadership.