The automotive industry in Nigeria is a significant contributor to the country’s economy,
providing employment and supporting the transportation needs of its citizens. However,
the industry faces several challenges that have hindered its growth and development.
One of the emerging players in the Nigerian automotive industry is the Duka
Automotive Ltd, a subsidiary of Origin Tech Group. Duka Automotive is already
making its presence felt in the automotive industry through their partnership with the
Lagos Government to supply the First and Last Mile buses, a transportation scheme to
help alleviate commuting challenges within the state.
One of the main challenges facing the automotive industry in Nigeria is the high cost of
vehicles, which is largely due to high import duties and taxes. This makes it difficult for
many Nigerians to afford new vehicles, and as a result, the market is dominated by
used vehicles.
Duka Automotive is however stepping up to tackle this challenge by setting up a state-
of-the-art assembly and production line to encourage the local production of vehicles
in Nigeria. The assembly plant was recently visited by the Director General of the
National Automotive Design and Development Council (NADDC), Mr. Jelani Aliyu, MFR
who lauded Duka’s efforts at closing the gap and pledged the support of his
organization towards ensuring a beneficial relationship between both parties.
Speaking on some of the challenges facing the sector, the Chairman of the Origin
Group, Prince SJ Samuel identified skill and knowledge gap as major impediments to
the growth of the sector. There is also a lack of investment in research and
development, which limits the ability of the industry to innovate and improve the quality
of its products.
Prince SJ Samuel pointed out that with the right investment and equipment, the
automotive industry in Nigeria had the potential to be a major contributor to the country’s
economy, but it is hindered by a range of challenges that need to be addressed to
realize this potential.
