This development marks a new phase in Nigeria’s efforts to attract foreign investment and boost local manufacturing capacity, as the automaker moves forward with plans to establish an assembly plant in the country.
Techcabal reports that the automaker, AvtoVAZ, best known for its Lada brand of affordable passenger cars, SUVs, and commercial vehicles, is expanding into Nigeria as part of its strategy to diversify operations beyond its domestic market.
The company, majority-owned by the Russian government, plans to establish a spare parts hub and service center in Lagos by the end of 2025, marking a significant foray into West Africa’s largest economy
The automaker also plans to establish a local assembly plant, a development which aligns with Nigeria’s National Automotive Industry Development Plan.
This will reduce vehicle import dependency and encourage local production.
By setting up operations in Nigeria, the automaker is positioning itself to meet growing demand while leveraging the country’s vast market potential.
AvtoVAZ leverages Nigeria’s CNG policy
AvtoVAZ has been expanding its footprint in the African market as part of its global strategy of seeking new opportunities in emerging markets amid geopolitical shifts and trade restrictions in its traditional markets.
This development follows AvtoVAZ’s ambitious target set in 2022, aiming to export approximately 20,000 cars in 2023, with a strong focus on expanding into African markets.
AvtoVAZ aims to capitalize on Nigeria’s shift towards alternative fuel vehicles by establishing a compressed natural gas (CNG) conversion plant in partnership with a Russian engineering firm.
Adewole Opeyemi, AvtoVAZ’s representative in Nigeria, while speaking with Techcabal noted that the plant, when completed, will enable Lada cars to be fitted with gas-powered engines, either at the factory or through local conversions.
“If you bring CNG cars to Nigeria, you don’t pay any duties, which is why we are in talks with the relevant agencies,” Opeyemi said. “Some Lada cars will arrive with factory-fitted gas-powered engines, while others will be converted locally by Russian specialists.”
Africa’s used car market
According to Mordor Intelligence, Africa accounts for approximately 40% of global imported used vehicle transactions.
Nigeria, Libya, and Kenya are among the key markets driving this sector. The report also highlights that used vehicles constitute a significant share, making up 85% of the total vehicle fleet across the continent.
Nigeria’s automobile market is one of the largest in Africa, driven by a growing population of over 200 million people and increasing urbanization.
The country relies heavily on imported vehicles, with over 400,000 units brought in annually, while local production remains limited.
Used vehicles (commonly called Tokunbo) account for about 70% of total car sales in Nigeria due to affordability concerns.
However, the emergence of several local manufacturers has started shifting the market, providing Nigerians with more options for purchasing brand-new cars.
AvtoVAZ’s entry into the Nigerian market aims to capitalize on this trend by offering affordable, locally assembled vehicles that can compete with both imported used cars and other new models.
