By Moses Akaigwe
Nigeria is a market with a huge population and enormous potential, but hamstrung by lack of a legal framework for the automotive policy (Nigerian Automotive Industry Development Plan, NAIDP) which is yet to be enacted since coming into effect in 2014.
This was the observation by Victoria Backhaus-Jerling, the Chief Executive Officer of African Association of Automotive Manufacturers (AAAM), who argued that not giving the auto policy a legal backing is a significant limitation to its enforcement and long-term success.
“A formal Auto Bill still needs to be passed and enacted into law,” she remarked in an exclusive interview with The Sun, disclosing that many original equipment manufacturers (OEMs) are dissuaded by policy uncertainty – which could be reversed by having a bill passed and accented to.
Moreover, according to Backhaus-Jerling, without an effective implementation of the NAIDP to attract investments by OEMs and component manufacturers, Nigeria is likely to remain a dumping ground for used vehicles from different parts of the world which adds no value to the economy.
She said: “AAAM continues to engage key stakeholders from the industry and we value our strong partnership with the National Automotive Design and Development Council (NADDC).
“Political will is essential. Without legislation and effective implementation of a progressive automotive policy, the country risks an unchecked influx of grey imports and reduced investor confidence in the sector.
“I saw many empty plants, which used to manufacture vehicles and components. This was sad to see, as on the other hand hundreds of thousands of used vehicles get imported into the country without adding any value.
“The implementation of a policy supported by trade-related investment measures could be transformative for Nigeria – catalysing local production, creating jobs, and strengthening regional value chains.”
The AAAM CEO specifically spoke more on the invasion of the country by used vehicles, saying, “When you are in Europe, people always ask about Nigeria — it is such a massive market with a huge population and an automotive legacy that is hard to ignore. At one point, Peugeot alone was manufacturing around 90,000 vehicles a year there.
“Unfortunately, that has since stopped. The industry is still very much present, but it is waiting — waiting for the government to implement the draft auto bill. There is significant interest from OEMs and component manufacturers, especially those geared toward the aftermarket, but again, they are holding back due to policy uncertainty.
“One of the major challenges Nigeria, like much of Africa, faces is the overwhelming influx of imported used vehicles, which undermines demand for new ones. The right regulatory framework is needed.”
Very passionate about the development of Africa’s automotive industry, and the first woman to head AAAM, Backhaus-Jerling succeeded Dave Coffey (another repository of knowledge about the industry,) as the association’s CEO) on March 1, 2025.
The African Association of Automotive Manufacturers (AAAM) is the continent’s only dedicated automotive industry body, established to drive the growth and industrialisation of Africa’s automotive sector.
The association, according to her, works closely with African governments and pan-African organisations to develop enabling policies, attract investment, and implement industrial strategies that support the creation of inclusive and resilient automotive ecosystems.
“Our focus is on supporting sustainable, affordable mobility while aligning with continental growth priorities. As a strong advocate of the African Continental Free Trade Area (AfCFTA), AAAM is advocating for regional integration and the building of local value chains to unlock intra-African trade in vehicles and components.”
Aside from the AfCFTA secretariat, and local automotive associations in various countries, such as Nigeria’s NAMA (Nigerian Automotive Manufacturers Association), AAAM maintains strong partnerships with a range of influential continental and global bodies to advance Africa’s automotive industry.
Such key partners include Afreximbank, and the German Association of the Automotive Industry (VDA).
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