Nigeria risks losing out in Africa’s rising automotive boom if it fails to reposition itself for the growth of its automobile industry, experts have warned.
The experts in the industry also expressed optimism that the sector could be on the cusp of a major transformation as the African Continental Free Trade Area (AfCFTA) moves to integrate Africa’s fragmented parts into a single, borderless market.
Speaking on the sidelines of the 2025 AFRICONNECTIONS Conference held in Dubai, United Arab Emirates (UAE), with the theme: ‘Connecting Markets, Driving the Automotive Ecosystem,’ the Chief Executive Officer, Transtech Industrial Consulting Ltd, Luqman Mamudu, expressed that the global automotive spotlight had shifted towards Africa, becoming the new frontier.
Mamudu, who is the former Acting Director-General of the National Automotive Design and Development Council (NADDC), stated that instead of merely importing cars from Europe or America, Africa is now viewed as a prime location for car manufacturing.
But he expressed worries that Nigeria’s absence from these critical regional dialogues and its internal policy inconsistencies may continue to leave the country as a mere “dumping ground” for used vehicles while its neighbours secure multi-billion-dollar industrial investments.
The conference, which was convened by Messe Frankfurt Middle East under the Automechanika Dubai platform, Mamudu revealed that Africa was transitioning from a consumer of imports to a hub for local assembly and parts manufacturing.
He emphasised that the African Continental Free Trade Area (AfCFTA) created an avenue for Nigeria to tap into, while the growing industrial and logistics capacity of Gulf Cooperation Council (GCC) countries signalled a new era of cross-border industrial collaboration, which the country could benefit from.
Mamudu expressed that Morocco and Tunisia had showcased themselves as the “gold standards” for policy-driven industrialisation on the continent and called on Nigeria to eschew policy somersaults to reap the benefits of development.
He said: “Africa is now central to global automotive opportunity. The UAE–Africa trade corridor is emerging as a powerful enabler of industrial growth, thanks to its superior logistics and pro-trade policies.
The Nigeria Automotive Manufacturers Association (NAMA) should better organise its members to leverage the African Continental Free Trade Area (AfCFTA). The country already has an installed assembly capacity exceeding 500,000 vehicles annually, yet policy inconsistency is crippling the industry.”
He appealed to the Federal Government to formally include the automotive sector in its Hope Agenda by enacting an investor confidence framework, possibly through amendments to the current NADDC Act.
Speaking in the same vein, the Secretary-General of AfCFTA, Wamkele Mene, outlined a vision for an integrated African automotive aftermarket capable of supporting small businesses, creating skilled jobs and boosting the continent’s competitiveness in the global automotive value chain.
According to him, Africa’s vehicle park had exceeded 50 million units, while the aftermarket for replacement parts, diagnostics, tools and repair services was valued at more than $30 billion.
Despite the strong demand fundamentals, Mene noted that growth had been constrained by uneven distribution networks, skills gaps and high logistics costs.
He said: “A borderless aftermarket economy is a necessity for Africa. When fully integrated under the AfCFTA, it can support thousands of Small, Medium and Enterprises (SMEs), generate skilled jobs and increase Africa’s competitiveness.
“The AfCFTA provides the framework, African banks are bringing a $1 billion financing commitment and Original Equipment Manufacturers (OEMs) are contributing technology and global expertise. Together, we can build a borderless aftermarket economy that is efficient, competitive and truly African.”
Besides, Mene further identified harmonised standards and improved logistics as critical enablers.
According to him, the AfCFTA, in collaboration with key partners, was working towards common technical regulations and conformity assessment systems, alongside deeper customs and logistics cooperation across member states.
Mene further highlighted the completion of AfCFTA rules of origin for the automotive sector, now ratified by 50 countries, as a major milestone.
In addition, new digital trade tools, Mene noted, were being rolled out, including an electronic tariff book, a digital certificate of origin and trade-facilitating payment platforms.
The Secretary-General’s remarks set the tone for the AfriConnections initiative, held on the final day of Automechanika Dubai, which aims to connect African buyers with global automotive suppliers and strengthen cross-border partnerships.
Further insights were shared during the keynote session, Africa at the Heart of Opportunities, delivered by Themba Khumalo, Principal Adviser to the AfCFTA Secretary-General.
He outlined how AfCFTA-led reforms are reducing trade barriers and accelerating the development of a unified continental automotive market.
