“I think everybody knows that recently, we signed a distribution agreement with our partners in Nigeria and following from the partnership, we’ve been working with MOU to look at the manufacturing capacity in Nigeria,” Jim Dando, General Manager, Sub Saharan Africa Nissan told CNBC Africa.
The policy will among other things revive local production of vehicles in the country and encourage partnerships between local and international car manufacturers.
“Up until this point, the environment for manufacturing products in Nigeria has not been conducive at all. The policy has become feasible for international manufacturers to actually move manufacturing into Nigeria,” said Dando.
Currently, Stallion produces commercial vehicles at the facility in Lagos but plans to expand to 45,000 units and to assemble a range of cars, light duty trucks, pickups and vans.
“We are not in this for the short term, we intend to have a relationship with Nigeria that will sustain growth for a much longer period,” he added.
The minister of trade and investments, Olusegun Aganga, is looking to an increase in the production of cars well suited for the rural areas in Nigeria.
“It makes locally manufactured products affordable to the market in Nigeria so of course as a manufacturer we are going to look at the opportunities in Nigeria and we are going to look at volume of opportunity in Nigeria,” said Dando.