Russia’s leading automaker, AvtoVAZ, is set to enter the Nigerian market with plans to establish a vehicle manufacturing plant, a spare parts hub, and a service center. This move marks a significant milestone in Nigeria’s efforts to boost local automobile manufacturing and reduce dependence on imported vehicles.
AvtoVAZ, best known for its Lada brand of affordable passenger cars, SUVs, and commercial vehicles, aims to offer locally assembled, cost-effective vehicles that can compete with both imported used cars and other new models. The company’s expansion aligns with Nigeria’s National Automotive Industry Development Plan, which seeks to encourage foreign investment in the sector.
According to TechCabal, the Russian state-backed automaker plans to set up a spare parts hub and service center in Lagos by the end of 2025, positioning itself to tap into Nigeria’s growing demand for affordable automobiles. The company will also establish a local assembly plant to manufacture vehicles tailored to the Nigerian market.
In addition to conventional petrol and diesel cars, AvtoVAZ is leveraging Nigeria’s push for Compressed Natural Gas (CNG) vehicles by setting up a CNG conversion plant in partnership with a Russian engineering firm.
Adewole Opeyemi, AvtoVAZ’s representative in Nigeria, revealed that the plant will enable Lada cars to be fitted with factory-installed gas-powered engines or converted locally by Russian specialists. He noted that under Nigeria’s new policy, CNG vehicles are exempt from import duties, making them a viable option for cost-conscious Nigerian buyers.
“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 stated.
With a population exceeding 230 million, Nigeria remains one of Africa’s largest automobile markets, heavily reliant on imports. Over 400,000 vehicles are imported annually, with about 70% of sales dominated by used (Tokunbo) cars due to affordability concerns.
However, the rise of local manufacturers and the introduction of affordable, brand-new vehicles are gradually reshaping the market. AvtoVAZ’s entry into Nigeria is expected to accelerate this shift, providing consumers with more options while fostering local job creation and investment in the automotive sector.
As Nigeria continues to push for industrialization and local manufacturing, AvtoVAZ’s move signals growing international confidence in the country’s automotive industry.
