Russian Lada Cars Will Be Stuffed With Spare Parts From Nigeria

Since 2025.

Russian manufacturers of automobile parts expect to begin assembling components in Nigeria in 2025, Russian trade representative in the African country Maxim Petrov told Izvestia.

“Preparatory activities will take place this year so that production can begin in 2025. <...> Parts that will be produced in Nigeria can be sent not only to the domestic market, but also to other African countries,” Petrov said.

According to him, the main task of Russian manufacturers is to accelerate the pace of production and expand it, including by developing the markets of “friendly” countries. At the same time, Petrov did not specify which enterprises he was talking about.

He recalled the words of the Minister of Industry of Nigeria, Otunba Adeniyi Adebayo, who promised Russian companies favourable tax conditions when locating production facilities in the republic. In particular, Nigeria provides a five-year tax holiday for investors in automobile assembly production.

However, Russian companies may have problems with logistics in an African country, says Sergei Shaikhetov, CEO of the research company Afrikaresearch. “Transportation of materials for production to Africa is not very cheap,” the expert noted.

Also, according to him, many countries on the continent do not have sufficient qualified workers, so they will have to be trained in production technologies. Lower labor costs partly offset this, Shakheitov says.

There are already about 15 car assembly plants operating in Nigeria. They mainly produce Chinese and Indian models of cars and trucks.

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