Nigeria Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in nigeria, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Automotive Sector
Last published date:

Overview

Table: Total Market Size for Automotive, Units: $ millions

 

2021

2022  

2023  

2024 (estimated)

 

Total Local Production 

130

120

90

100

 

Total Exports 

2

2

4

4

 

Total Imports 

143

114

126

130

 

Imports from the U.S.

55

32

14

15

 

Total Market Size 

271

232

212

226

 

Exchange Rate: 1 USD

411

448

897

1800

 

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: 
Total Local Production:  Estimates from industry contacts 
Total Exports:   UN Comtrade
Total Imports:   UN Comtrade
Imports from U.S.:  UN Comtrade, TradeStats Express
Note: Figures on the chart are for new cars only. Used and refurbished vehicles are not included.

Smuggling, grey imports of used vehicles, and the lack of reliable data make the exact size of Nigeria’s vehicle market difficult to quantify. Challenges concerning the licensing and identification of vehicles further contribute to this difficulty. However, industry reports estimate a market size of about 1,150,000 new and used cars. Nigeria is heavily dependent on imports to meet local demand. Limited disposable income due to poor economic conditions and lack of access to car finance have continued to make imported used cars critical for most Nigerians. The United States is the largest supplier of used passenger cars and used spare parts. China leads the supply of new vehicles and parts. Foreign exchange scarcity and increases in customs tariff and taxes imposed by the government on imported vehicles forced U.S. exports of used cars to decline from more than $1 billion in 2021 to $562 million in 2023. 

Nigeria is a significant net importer of automotive components, sourced mainly from, the United States, China, and South Africa. The launch of the Automotive Industry Development Plan (NAIDP) in 2014 attracted leading international carmakers and led to the resumption of small-scale vehicle assembly in Nigeria. However, low sales, high production costs, insecurity and inconsistent government policies caused several of them to relocate to nearby Ghana and set up assembly plants with plans to export vehicles to Nigeria. U.S. exporters of used passenger cars should note that Japanese brands are in high demand and hold a controlling market share of up to 70% due to consumer perception of their reliability and fuel efficiency. 

Leading Sub-Sectors

  • Used heavy duty trucks
  • Used spare parts
  • Car care products
  • Car electronics and diagnostics
     

Opportunities  

Nigeria’s Energy Transition Plan, launched in 2022 to support the 2060 net zero target, has established ambitious targets for electric vehicle (EV) adoption. As outlined in this plan, EVs will constitute 60 percent of the total market by 2050 and 100 percent by 2060. The plan also seeks to stimulate investment in domestic EV production and strengthen the economy by reducing the country’s reliance on imported vehicles through the National Action Plan for Development of Electric Vehicles (EVDP), which targets at least 30 percent of local production by 2032. The government has set a goal of installing 3,000 chargers annually to support EV adoption after 2030.  So far, six electric vehicles manufacturing companies have begun operating in Nigeria.

Challenges

Nigeria’s automotive sector faces several challenges, including inadequate infrastructure, policy inconsistency, and limited access to financing.

Local Trade Shows

West Africa Automotive Show (WAAS)
May 13-15, 2025
Landmark Center, Victoria Island
Lagos, Nigeria
https://www.westafricaautomotive.com

Resources 

National Automotive Design and Development Council https://naddc.gov.ng/
For more sector information, e-mail: Ambrose Thomas, Commercial Specialist: Ambrose.Thomas@trade.gov