Nigeria - Trucks Nigeria - Trucks
Overview
Unit: USD thousands
| 2016 | 2017 | 2018 | 2019 (estimated) | |
| Total Market Size | 72,400 | 176,000 | 226,000 | 265,000 |
| Total Local Production | 40,000 | 50,000 | 60,000 | 65,000 |
| Total Exports | 0 | 0 | 0 | 0 |
| Total Imports | 32,400 | 126,000 | 166,000 | 200,000 |
| Imports from the U.S. | 16,340 | 63,019 | 83,242 | 100,000 |
| Exchange Rate: 1 USD | 197 | 359 | 359 | 359 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Estimates by industry contacts
Total Exports: Estimates by industry contacts
Total Imports: Estimates by industry contacts
Imports from U.S.: U.S. Census Bureau.
Transportation by road accounts for more than 70% of all intra and inter-city traffic in Nigeria due to the country’s poor transportation infrastructure. Rail projects intended to connect the country’s commercial cities are still in the works and not fully operational. Therefore, dry and wet cargo will continue to be distributed largely by commercial heavy and light duty trucks. A significant number of the vehicles on Nigerian roads are used units imported from the United States, Germany, Netherlands and Belgium. The U.S. is responsible for nearly half of Nigeria’s imports of used trucks and the Mack brand leads as the most preferred due to its perceived ruggedness and durability. Much of all imported brand-new trucks come from China. Efforts by the government to encourage local manufacture is yielding results. Nigerian conglomerate Dangote Group in partnership with Sinotruk of China has begun an assembly factory in Lagos with the capacity to produce 10,000 trucks a year. Mitsubishi Fuso Truck and Bus Corp, in partnership with the CFAO Group, has also opened an assembly plant in Lagos with capacity to produce up to 500 Fuso Canter light duty trucks a year. The Anambra Motor Manufacturing Co (Anammco), and GM Nigeria, a joint venture between UAC of Nigeria Plc and US's General Motors Co. also assembles trucks and buses. The Economist Intelligence Unit projects the total commercial vehicle sales in Nigeria to reach 6,600 units in 2021, 74% higher than 2016. The growing competition from locally assembled and modestly priced Chinese trucks will likely impact U.S. imports adversely.
Leading Sub-Sectors
Although Nigeria has a sizeable market for buses, demand for American models is insignificant. Before Chinese and locally made models became prominent recently, the Mercedes and Marcopolo brands were the most in demand. American buses are uncompetitive, partly, due to their high price tag compared with their Asian rivals and partly because of their low ground clearance - a major concern for bus owners given the deplorable condition of Nigerian roads. Opportunities exist for U.S. companies in advanced systems and services for fleet management, wet cargo metering tools, tracking devices, as well as other ICT-based products and capabilities required by haulage and passenger transit companies.
Opportunities
There are very few well-established truck and bus driving schools in Nigeria. Consequently, many drivers are not well-trained and do not possess driving certifications. Therefore, opportunities exist for establishing well equipped training centers.
Local Event:
USA FAIR 2020: ACCESS NIGERIA (April 28-30, 2020 - TBC)
Eko Convention Center, Victoria Island, Lagos.
Organized by the US Commercial Service exclusively for American exhibitors to meet thousands of prospective Nigerian businesses.
(Please contact Ambrose.Thomas@trade.gov for more information)
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.