Vice-President Kashim Shettima has called on automotive manufacturers in Nigeria to increase production capacity for Compressed Natural Gas (CNG)-powered and electric vehicles in order to meet rising national demand.
Shettima, represented by the Minister of Innovation, Science and Technology, Dr Kingsley Udeh, made the appeal on Tuesday in Abuja while declaring open the 25th Abuja International Motor Fair.
He described the automotive industry as a key pillar of the Federal Government’s Renewed Hope Agenda, noting that the administration was steering the sector along the lines of “Gas, Green and Growth.” According to him, Nigeria’s abundant natural gas reserves offer a strategic pathway for affordable, cleaner mass transit.
The vice-president highlighted that the Federal Government had provided N20 billion through Credit Corp to support the acquisition of locally assembled vehicles, as part of efforts to boost demand and stimulate industrial growth.
“We acknowledge the need for innovative, bespoke financing packages with single-digit interest rates specifically for Made-in-Nigeria vehicles,” he said.
“When a teacher, a nurse, or an entrepreneur can afford a quality, locally assembled car, we do more than make a sale — we fuel a virtuous cycle of demand, production, job creation, and national economic stability.
“Finance is the grease for the wheels of industry; we encourage our commercial institutions to find innovative ways to finance and support the automotive sector.”
Shettima reaffirmed the government’s commitment to making Nigeria the regional hub for CNG-powered and electric mobility in West Africa. He urged stakeholders to prioritise local production and procurement under the Nigeria First Policy, while commending the organisers for sustaining the motor fair for 25 years.
Also speaking, the Minister of State for Industry, Sen. John Enoh, reiterated the Federal Government’s commitment to strengthening the automotive industry through consistent policies and strategic incentives. He noted that the sector remains central to the administration’s industrialisation and economic diversification drive.
Enoh said the motor fair showcased progress under the National Automotive Industry Development Plan (NAIDP) and praised local assemblers and component manufacturers for demonstrating that Made-in-Nigeria vehicles can compete in quality and value.
He added that the government was working to remove administrative bottlenecks, attract foreign investments, and support the transition to green mobility through CNG and electric vehicles.
The Director-General of the NADDC, Joseph Osanipin, said the council was focused on reviving and repositioning the sector through sustained implementation of the NAIDP. He noted that market expansion, component development and enhanced local capacity were at the heart of the agency’s drive.
Osanipin disclosed that Nigeria currently has about 30 active vehicle assemblers with nearly $1 billion in investments in the sector. While acknowledging existing challenges, he said Nigeria’s large market, youthful population and ongoing policy reforms offer strong prospects for industry growth.
Earlier, Mr Ifeanyichukwu Agwu, Managing Director of BKG Exhibition Limited and co-organiser of the fair, said the event had weathered Nigeria’s economic highs and lows over the years. He urged governments at all levels to establish a functional vehicle financing scheme to make car ownership more affordable and stimulate demand.
“If our people cannot access mobility, our economy cannot move. Vehicle finance is not a luxury; it is a necessity,” he said.
