Wisdom Engraced
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The automobile industry in Nigeria is on the brink of collapse, with car prices skyrocketing by over 126% in eight years, from N18 million to N80 million on average. This drastic price hike has crippled sales, excluding middle-income earners from the market.
Kunle Jaiyesimi, President of the Automobile, Boatyards, Transport Equipment, and Allied Employers of Nigeria, lamented the sector’s misfortune in an interview with The PUNCH. “The market has shrunk dramatically,” Jaiyesimi said. “Eight years ago, you could get a mid-size SUV for N18 million. Today, that same vehicle goes for nothing less than N80 million, and there is no consumer financing to match the rise.”
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Jaiyesimi attributed the industry’s struggles to Nigeria’s auto policy, which was rolled out over a decade ago but has failed to support investors and consumers. “Before the downturn, we were doing between 120 and 150 units monthly. Now, the total new vehicle sales for last year were just above 18,000 units, and that’s with the government remaining the biggest buyer.”
The AAABTEAEN president criticised government officials for not attending sectoral events, such as the West Africa Automotive Show 2025, which aimed to drive investment in local assembly and component manufacturing. “None of the ministers or the DG of NADDC showed up. It is discouraging to investors. The government must do more,” Jaiyesimi said
Jaiyesimi also expressed concern that the government continues to bypass local partners in international engagements. “You see Nigerian officials flying to Japan to meet with Toyota without involving their local representatives here. It sends the wrong message and undermines efforts to grow the industry locally,” he bemoaned.
On consumer credit, Jaiyesimi noted that the sector had proposed a 35% levy on imported fully built vehicles to fund vehicle financing for Nigerians. “That levy would have generated over N200 billion since 2014. It was meant to enable Nigerians to walk into banks, pay equity, and drive out with a car under single-digit interest,” he explained. However, Jaiyesimi acknowledged the N20 billion vehicle credit scheme recently announced by the administration of President Bola Tinubu, saying, “At least, it’s a step in the right direction.”
Ngozi Emechebe, president of the Auto Spare Parts and Machinery Dealers Association, stressed the importance of the accessibility and affordability of spare parts. “Government must ensure gas is available if they want conversion from petrol to work. The endpoint is the market. If there’s no gas, how will people cope?” he asked.
Emechebe called on local automakers to improve access to their parts, stating, “If I decide to import a headlamp for Innoson, I should be free to. Accessibility is key. We want vehicles and components available to the masses.”
The dealers are now calling on the Federal Government to expand consumer credit schemes, strengthen auto policies, and engage local stakeholders in global investment talks to prevent further decline in the automotive sector
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