FG Engages Local Manufacturer on Plans to Make New Vehicles Affordable for Nigerians
- The federal government has pledged support for local auto manufacturers, while discouraging Nigerians from purchasing imported used vehicles
- Elizade JAC said it plans to make brand-new vehicles more accessible to Nigerians by 2026, and reduce dependence on used imported cars due to safety concerns
- The company said its strategy includes affordable pricing, warranties and after-sales services, as it argued that tokunbo vehicles pose tragic risks
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has urged Nigerians to patronise locally-produced vehicles and especially stop buying used cars from abroad, The Nation reported.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said this during a visit to the assembly plant of Elizade JAC Autoland Limited, an indigenous automaker, in Lagos.
Source: Twitter
Oduwole argued that most of the imported used vehicles, known in local parlance as Tokunbo, were damaged vehicles refurbished and polished.
“They’re essentially possible death traps if we’re not careful. So, we don’t want Nigerians buying substandard used goods that other countries have rejected,” she said.
Elizade JAC plans to make new vehicles affordable
Meanwhile, Elizade JAC Autoland Limited shared with the minister its plan to make brand-new vehicles more accessible to Nigerians, as part of efforts to reduce the country’s heavy reliance on used imported cars.
The Managing Director of the company, Mr Demola Ade-Ojo, told the minister that Elizade JAC’s strategic vision for 2026 is to positively disrupt Nigeria’s automotive market by encouraging more Nigerians to buy new vehicles instead of used imports.
He noted that Nigeria’s auto market is currently dominated by used vehicles, many of which come with reliability and safety concerns.
“For 2026, that’s exactly what we’re going to do. We want to begin to inform Nigerians so that they can understand why it is beneficial to them and to the nation to drive new vehicles rather than used ones,” Ade-Ojo said.
Minister hails Elizade JAC
During the visit, Dr Oduwole praised Elizade JAC’s investment in local manufacturing, saying industrialisation remains a key priority of the current administration.
“Industrialisation is a priority to the administration, and we’re glad to have businesses like this partnering with us to deliver for Nigerians,” she said.
Dr Oduwole toured Elizade JAC’s expanded Ikotun assembly plant, where she inspected two assembly lines: a single-track line for passenger vehicles and a dual-track system for industrial vehicles.
According to her, the expansion significantly increases the company’s production capacity and positions it to meet rising demand for locally assembled vehicles.
She added that the federal government is keen to support domestic investors who reinvest in expanding operations and boosting local production.
Executive Director of Sales at Elizade JAC Autoland Limited, Mr Biola Odukomaiya, said the company’s strategy is not limited to vehicle sales but includes after-sales support.
He said the company is offering lower-priced products alongside maintenance and service as a package.
Source: Original
Nigerians but tokunbo more than new vehicles
Ade-Ojo acknowledged that new vehicle sales remain low compared to used vehicles in Nigeria, adding that public education will be central to the company’s 2026 strategy.
He said Elizade JAC plans to highlight the long-term benefits of new vehicles, including lower maintenance costs, better fuel efficiency, higher reliability, improved resale value and comprehensive warranties.
“We are looking at how Nigerians can enjoy using and owning new vehicles. It’s not just about price but about total value over time,” he said.
FG imposes compulsory vehicle recycling fee
Legit.ng reported earlier that the federal government announced a mandatory vehicle recycling fee in a massive push to purge the country of abandoned vehicles.
The government disclosed that the move was to curb waste and abandonment of disused vehicles in the country, projecting massive earnings from the scheme when it is finally launched.
Authorities say the policy is aimed at formalising Nigeria’s largely informal auto recycling market and modernising the country’s automotive industry.
Source: Legit.ng
