Russian automaker AvtoVAZ, known for its Lada brand, is set to establish a car manufacturing plant in Nigeria. This move is part of the company’s strategy to expand beyond Russia and tap into Nigeria’s growing automobile market.
The plant will focus on producing affordable, locally assembled vehicles to compete with imported used cars and other new models.
Nigeria is working to attract foreign investment and strengthen local manufacturing. AvtoVAZ’s decision to set up an assembly plant aligns with Nigeria’s National Automotive Industry Development Plan, which aims to reduce reliance on vehicle imports and encourage local production.
The company will also establish a spare parts hub and service center in Lagos by the end of 2025. This development is expected to create jobs and provide Nigerian car buyers with more affordable options.
To support Nigeria’s transition to alternative fuel vehicles, AvtoVAZ plans to set up a compressed natural gas (CNG) conversion plant in partnership with a Russian engineering firm. The facility will enable Lada cars to be equipped with gas-powered engines, either at the factory or through local conversions.
AvtoVAZ’s Nigerian representative, Adewole Opeyemi, stated that CNG vehicles entering Nigeria are exempt from import duties, making them a cost-effective option.
Some Lada cars will arrive with factory-fitted gas-powered engines, while others will be converted locally by Russian specialists.
Nigeria’s automobile market is among the largest in Africa, driven by a population of over 230 million people and increasing urbanization. The country imports over 400,000 vehicles annually, with used cars (commonly called Tokunbo) making up about 70% of sales due to affordability.
However, the rise of local car manufacturers is changing the industry, offering Nigerians more choices for brand-new vehicles. AvtoVAZ aims to take advantage of this shift by providing affordable, locally assembled cars that can compete with both imported used cars and other new models.
This investment by AvtoVAZ is expected to have a positive impact on Nigeria’s automotive sector, creating jobs and making new cars more accessible to the growing population.
