In recent decades Nigeria has made great strides, managing to capitalise on the country’s natural oil wealth to propel economic growth while working to establish a greater sense of social and political stability. Consisting of 36 autonomous states, Nigeria is a culturally diverse federation that boasts one of the highest youth populations in the world. Historically, Nigeria’s political landscape has been characterised by fierce conflict amongst the country’s numerous ethnic groups, along with public sector corruption and fiscal mismanagement. However, recent years have seen positive developments on the political front. The current government, headed by Muhammadu Buhari, has prioritised initiatives related to economic diversification, fighting corruption, reducing unemployment and enhancing the living standards of Nigerians.
Nigeria’s once-thriving automotive industry has stagnated in recent decades due to policy inconsistency, poor implementation and the low average purchasing power of native Nigerians. After oil-led growth in the 1970’s saw the widespread establishment of local production facilities, subsequent decades of economic volatility muted foreign interest in the sector. In 2014, the Nigerian government released the National Automotive Industry Devel- opment Plan (NAIDP), which aims to stimulate sector development in order to boost local manufacturing, phase out imports and achieve a higher level of economic diversification for the country.