By Husain Husain Legbo
L-R: Mr. Daniel Pinkrah, Executive Director, Import, Coscharis Group; Hon. (Dr) Enitan Badru, Chairman, House Committee on Industry, Federal House of Assembly and Mr. Josiah Samuel, Group Managing Director, Coscharis Group during the recent visit by members of House Committee on Industry and officials of National Automotive Design Development Council to Coscharis Assembly Plant at their Group headquarters office in Lagos
The National Automotive Design and Development Council (NADDC) and the House of Representatives Committee on Trade and Industry embarked on a strategic familiarization tour of Lagos-based automotive assembly plants on Thursday. The delegation’s visit aimed to strengthen legislative support for local auto manufacturers and boost the production capacity of domestically assembled vehicles.
The tour began at Coscharis Motors’ state-of-the-art assembly plant, where stakeholders highlighted the critical role of policy-backed initiatives in sustaining investments and scaling operations. The team later extended their visit to other prominent facilities, including Dangote Sinotruk West Africa, to explore collaborative strategies for expanding Nigeria’s automotive industry.
This initiative reflects the government’s commitment to fostering an enabling environment for local assemblers, enhancing competitiveness, and advancing the nation’s industrial growth
Representing the NADDC Director-General, Engr. Dr. Fidelis Achiv, Director of Research, Design, and Development, underscored the importance of integrating locally manufactured components in Nigeria’s assembly plants to strengthen local content and reduce reliance on imports. Speaking during the Lagos facility tour, Dr. Achiv emphasized that high-quality, internationally compliant parts produced by local manufacturers should take precedence.
He highlighted the challenge of low after-sales demand, which currently limits production capacity. “If demand were stronger, assembly lines could operate at full capacity,” he noted, calling for concerted efforts to expand market reach and boost the competitiveness of locally assembled vehicles. Dr. Achiv’s remarks underscored the need for a strategic balance between production, demand, and market growth to drive Nigeria’s automotive industry forward.
“We’ve provided support to these companies and will continue to stand by them, but they must also take proactive steps to explore new markets and leverage competitive interest rates,” remarked Engr. Dr. Fidelis Achiv during the assembly plant tour.
He stressed that while government backing remains steadfast, the onus is on manufacturers to seek innovative market opportunities and financial solutions that will bolster their competitiveness. This dual approach, he suggested, is vital for sustaining growth and positioning Nigeria’s automotive industry as a key player on the global stage.
After touring the Coscharis Motors Assembly Plant, the Chairman of the House Committee on Industry, Enitan Dolapo-Badmus, emphasized the need to shift consumer preference from imported used cars, commonly known as ‘Tokunbo,’ to locally assembled new vehicles.
“The goal of this tour is to identify ways the House Committee can support Coscharis Motors and other assemblers in convincing Nigerians to embrace brand-new cars,” she stated. Dolapo-Badmus argued that while used cars may seem affordable initially, their long-term costs often outweigh the benefits, making locally assembled vehicles a smarter and more sustainable choice. This initiative aligns with efforts to bolster Nigeria’s auto industry and promote economic growth through local production.
Hon. Enitan Dolapo-Badmus raised concerns about the underutilization of the significant investments made by local assemblers in vast assembly plants. Speaking during her visit to the Coscharis Motors facility, she questioned the viability of such large-scale operations if Nigerians continue to overlook locally assembled vehicles in favor of imported alternatives.
“These assemblers have poured resources into building expansive facilities, yet their vehicles face limited patronage from the domestic market,” she remarked. Her comments underscored the urgent need for policies and campaigns to shift consumer attitudes and support the growth of Nigeria’s automotive industry through increased local demand.
“Definitely, they have to sell to over 200 million Nigerians not only to the government,” he pointed out, adding, “Government alone cannot increase the volume of vehicles assembled by these companies.
“So, how do we dissuade Nigerians from buying used cars? What we suggest is that there must be legislation. Every side has to bend, including those who are running assembly plants.
“You can’t say somebody who is trying to survive should buy a brand new vehicle. It doesn’t come cheap, but there is need for a vehicle buying payment plan enabling a Nigerian to buy on credit at a single digit with a four-year plan. By so doing, we can encourage patronage. Let’s leave Nigerian banks out of it. You can’t ask me to pay 28% or 35% interest rate on a N20 million vehicle. It won’t work.’’
Hon. Enitan Dolapo-Badmus proposed a collaborative four-year scheme between auto assemblers and the National Assembly as a practical solution to revitalize Nigeria’s automotive industry. “At the end of the day, the key is ensuring their investments yield returns. Once that’s guaranteed, everything else falls into place,” she stated.
Addressing questions about the pending National Auto Industry Development Plan (NAIDP) bill, she clarified its scope. “The automotive policy focuses on creating a supportive framework for assemblers, not mandating consumers to buy their cars. While passing the bill into law would establish a favorable environment for assembly plants to thrive, additional measures are needed to encourage consumer purchases.”
Adding his perspective, Coscharis Group Managing Director, Josiah Samuel, praised the visit by the NADDC and the House Committee as both innovative and timely. He expressed optimism that their support would pave the way for sustainable growth and stronger market engagement within the local auto industry.
He said: “As stated by the Chairman, the visit was aimed at finding a way to further support local assemblers. I think it is novel and noble considering what has become of the auto policy.
“Like you may know, originally, the policy was meant to curtail and gradually reduced the importation of used cars as well as offering Nigerians auto finance scheme at single digit interest rate, something that would have helped to incentivize those who want to buy cars.
“This was altered by the amendment in the 2020 Finance Act, which has since reduced the levies on import from 35% to 20%, an action that further discourages local production.’’
Conclusively, Mr. Josiah Samuel, Managing Director of Coscharis Group, highlighted the significant advancements at the Coscharis Assembly facility, which boasts a state-of-the-art multi-model production line. “We have transitioned from Semi-Knock-Down (SKD) to Complete Knock-Down (CKD) assembly, leveraging an automated cradle for precision and efficiency,” he noted.
Established in 2013 with technical guidance from Ford Motor Company, the facility specializes in producing the Ford Ranger SUV alongside other renowned brands. “Our dismantling and assembly capabilities are unparalleled, setting us apart in the industry,” Samuel added. This progress underscores Coscharis Motors’ commitment to driving innovation and excellence in Nigeria’s automotive sector.
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