This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 6/20/2016

Overview

Unit:  USD thousands

 

2013

2014

2015
(estimated)

2016
(estimated)

Total Market Size

222,950

236,800

250,100

150,000

Total Local Production

14,000

16,800

20,100

40,000

Total Exports

0

0

0

0

Total Imports

208,950

220,000

230,000

110,000

Imports from the U.S.

104,687

140,000

142,000

60,000

Exchange Rate:   1 USD

197

197

197

197

 
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: 
Total Local Production:   National Association of Road Transport Owners (NARTO), Independent Petroleum Marketers Association (IPMAN)
Total Exports:   National Association of Road Transport Owners (NARTO), Independent Petroleum Marketers Association (IPMAN).
Total Imports:   National Association of Road Transport Owners (NARTO), Independent Petroleum Marketers Association (IPMAN).
Imports from U.S.:   U.S. Census Bureau.
 
*Estimates based on industry sources including National Association of Road Transport Owners, importers and Independent Petroleum Marketers Association.
 
Since the collapse of the Nigerian railway system, road transportation, which, now accounts for about 80 percent of all intra and inter-city traffic has become the principal means of transporting goods and passengers.  The government has made significant investment to rehabilitate the Nigerian Railway Corporation (NRC) infrastructure, but it still remains operationally inefficient.  With its vast land mass, a population of more than 180 million and being an increasingly important regional hub for trade in West Africa, Nigeria’s need for trucks hasn’t been more crucial.  European brands like MAN Diesel, IVECO, Mercedes Benz, Bedford and DAF dominated the market during the 1990s.  But recent years have seen the exponential increase of U.S. trucks especially the Mack brand, which now has a controlling market share of more than 50 percent.  Consumers say its rugged engineering and durability is the main reason they buy it.  Nigerian buyers largely favor used U.S. or European trucks because of affordability factors.  Freightliner, Kenworth and International share a small portion of the market (less than 10 percent) but have strong potentials if supported with marketing, availability of local repair/service shops, and spare parts supply.  Nigerians generally have a strong affinity for U.S. made products due to their good quality.  Chinese trucks, though lacking the superiority of U.S. or European brands, pose significant competition because they are inexpensively priced.  The new automotive policy, implemented by the government in 2015, has stirred up significant investor interests in local assembly though currently, only about two plants exists.
 

Sub-Sector Best Prospects

 
New and used truck parts, engines and transmissions; driver training services; modern truck service and repair facilities, tracking systems; and wet cargo metering systems.
 

Opportunities

 
Opportunities exist for truck driver training and certification.  Many Nigerian truck drivers are not well-trained and do not possess driving certifications.  This is because there are no well-established truck driving schools in Nigeria.  Therefore, truck owners incur significant costs due to losses in assets, lateness in goods delivery and road accidents.
 

Web Resources

 
http://www.nac.gov.ng
 
For further information (sector), e-mail Chamberlain Eke, Commercial Specialist, U.S. Commercial Service, Nigeria at Chamberlain.eke@mail.doc.gov.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


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