A Conversation with Mr. Luqman Mamudu, Former Director of Policy & Strategy and Acting DG, NADDC
Nigeria imports nearly 85% of its vehicle parts, yet the country has the raw materials, industrial capacity, and market demand to produce much of what its cars need – from rubber components to trim materials.
In this exclusive, Mr. Luqman Mamudu doesn’t mince words: “the potential for local automotive manufacturing is enormous, but policy gaps, inconsistent incentives, and weak legislative support are holding the industry back.”
He reveals what could transform Nigeria into a self-sufficient, regionally competitive automotive powerhouse, if the government and private sector act decisively.
Mr. Mamudu identifies the biggest setback facing Nigeria’s auto industry in 2025 as the fact that recent fiscal interventions have not directly addressed the core objective of the National Automotive Industry Development Plan (NAIDP), which is to increase local content in vehicle assembly and manufacturing.
“Most assembly platforms established between 2014 and 2020 — or what remains of them — were practically left out of current programmes,” he explains, “Only a few individual assemblers, mainly in bus manufacturing, have sustained progress and taken advantage of initiatives such as the government’s CNG programme. Adding to the challenge, the long-awaited NAIDP Investors’ Confidence Bill has yet to receive the legislative attention expected, leaving the sector without significant new foreign direct investment.”
Regarding Nigeria’s shift to compressed natural gas (CNG) and electric vehicle (EV) technologies, Mr. Mamudu notes that while the CNG initiative has attracted investment and early adoption, the rollout of supporting infrastructure is lagging behind demand.
“Pi-CNG continues to review and adjust its implementation strategy, and full traction will take time, especially if automotive assemblers are not provided with substantial investment incentives to produce factory-built CNG vehicles,” he pointed out.
He also highlights opportunities for public-private partnerships with petroleum retail network operators, including NNPC and independent marketers, to deploy CNG dispensing units nationwide, emphasizing that without such partnerships, growth will remain slow.
Government support through procurement, according to Mr. Mamudu, remains limited. While there is some patronage of local assemblers, government vehicle procurement budgets are relatively small compared to private-sector purchases. This underscores the importance of legislative approval of the NAIDP, which he sees as critical for building sustainable local assembly capacity and a strong component manufacturing base for both OEM and replacement markets. Without it, Nigeria remains unattractive to foreign investors due to fears of policy inconsistency.
When asked about the level of localization realistically achievable today, Mr. Mamudu is optimistic. With over 85% of the approximately 15 million vehicles on Nigerian roads being pre-owned imports, the demand for replacement parts is massive. He argues that Nigeria has the raw materials and industrial potential to localize many components, including rubber parts, trim materials, and other items, provided targeted investments are directed toward developing the value chain.
In terms of market growth, he points out that the second-hand vehicle segment remains the fastest-growing sector in 2025, reflecting both opportunity and ongoing dependence on imported vehicles.
As for the single most impactful government intervention, Mr. Mamudu emphasizes the creation of a low-cost, single-digit interest financing scheme for acquiring made-in-Nigeria vehicles. Such a scheme, he explains, would immediately revive assembly plants, expand employment, and stimulate the development of a local components manufacturing ecosystem.
On Nigeria’s potential as a regional automotive hub, he believes the country is close but not yet fully engaged. Industry stakeholders, including organizations like NAMA, have not actively participated in regional automotive development schemes. Meanwhile, countries such as Ghana, Egypt, and Kenya are integrating into regional and continental automotive frameworks despite Nigeria’s earlier start. According to Mr. Mamudu, the country must be more deliberate and involved if it is to seize the immense opportunities available in the region.
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