In 1975, Nigeria operated three car assembly plants: Federated Motor Industries in Apapa, Volkswagen Nigeria in Lagos, and Peugeot Automobile Nigeria in Kaduna. These facilities represented the government's push to reduce reliance on imported vehicles, yet the country had only 175,000 registered vehicles for a population of about 66 million people, resulting in roughly one car for every 574 individuals.
Vehicle Registration Data in 1975
Of the 175,000 vehicles, 115,000 were passenger cars and 60,000 were trucks and buses. Passenger car registrations more than doubled from 17,782 in 1970 to 40,830 in 1974. Commercial vehicle registrations rose from 15,000 to 18,579 in the same period. According to a report shared by Archivi.ng, which documents old newspapers, industrial expansion, improving road networks, and rising incomes drove demand, making car ownership a social status symbol.
Global Comparison of Car Ownership
Nigeria's car ownership rate of 573.9 people per car was among the world's lowest. In contrast, the United States had 2.2 people per car, Canada 2.9, West Germany 3.8, and the United Kingdom 4.3. The data highlighted the vast gap between Nigeria and developed nations.
Challenges in the Automobile Industry
The industry faced severe production hurdles. All three assembly plants depended on imported steel, machinery, and components. Shipping delays of six to nine months frequently halted assembly lines. Despite these obstacles, industry figures were optimistic about Nigeria's long-term potential, believing that sufficient demand, available workforce, and industrial foundation could support local parts manufacturing at scale. However, decades later, Nigeria largely relies on imported used cars from Europe and America.
Access Bank Launches Auto Financing Programme
In response to rising vehicle prices, Access Bank Plc unveiled AutoFest, a vehicle financing programme. Launched at an event in Lagos, the initiative allows eligible customers to access up to 90% funding for new and certified pre-owned vehicles, with a minimum equity contribution of 10%. Repayment tenures extend beyond four years, and the application process is digital.
