Steering Nigeria’s Auto Future: How Oluwatobi Joshua Ajayi Built Nord Against the Odds
In a country where second-hand foreign cars form most of what you see rolling through the streets, one man dared to change the narrative. Oluwatobi Joshua Ajayi, once a rising executive at Mercedes-Benz Nigeria, now leads Nord Automobiles Limited—one of Nigeria’s first indigenous automakers aiming to make durable, affordable vehicles that can compete with foreign brands locally and beyond.
From Mercedes-Benz to “Made-in-Nigeria”
Ajayi’s early career gave him a front-row seat to how premium foreign brands work in Nigeria. After his National Youth Service assignment, he remained at Mercedes-Benz Nigeria, eventually managing the Vans division. Between 2013 and 2015 he grew Mercedes-Benz vans’ market share from under 1% to about 7%. nordmotion.com+3The Guardian Nigeria+3Leadership News+3 He also won the Mercedes-Benz Best Sales Performance for Africa award in 2013. Leadership News+2How we made it in Africa+2
While working with Mercedes-Benz and then later co-founding Jetvan Automobiles Limited, Mr. Ajayi observed something unsettling: imported, especially used, cars dominate because they’re cheaper—even though reliability, maintenance, warranties, and total cost of ownership often favour new, locally-assembled vehicles. He saw opportunity in that mismatch. How we made it in Africa+2CediRates+2
In 2015, he left Mercedes-Benz more fully to focus on Jetvan. But three years later, in 2018, he struck out on his own with Nord Automobiles, founding the company to assemble vehicles locally, designed around the realities of Nigerian roads, local consumer preferences, and affordability. CediRates+3The Guardian Nigeria+3How we made it in Africa+3
What is Nord Automobiles: Vision, Capacity, and Products
Vision & Strategy
Nord aims to produce cars that are:
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durable: able to stand up to Nigeria’s challenging road conditions, heat, maintenance constraints.
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reliable: backed by warranties, local service networks, genuine parts.
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affordable: a new car whose total ownership cost is competitive with second-hand imports, rather than a luxury only for a few. The Guardian Nigeria+3How we made it in Africa+3Vanguard News+3
Ajayi has emphasized that the company designs (or at least contributes to design), sources parts internationally, and assembles locally. Plastics and minor body components are already being manufactured locally; future plans include more component manufacturing (such as steel stamping). Wikipedia+1
Plants, Capacity & Models
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Manufacturing / assembly facilities: Nord has a plant in Sangotedo, Lagos (≈ 2,100 m²) where current assembly operations occur. A larger facility in Epe, Lagos (≈ 5,400 m²) is under construction. When the Epe plant is fully operational, more of the production more components and possibly higher volumes will shift there. How we made it in Africa+1
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Production capacity: Currently modest. In its early years Nord assembled only a few hundred units in total (≈ 200 units across various models up to a certain point) due to low demand, high costs, etc. But the capacity, with investment, could scale significantly (some reports suggest up to 25 units/day in the future under better conditions). Carmart Africa+2The Guardian Nigeria+2
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Models: Nord’s fleet includes sedans, SUVs, pickups, minibuses. Examples: Nord A3 (sedan), A5 (crossover / SUV), A7 SUV, A9 SUV, Tank (pickup), Tusk (pickup), plus others like Yarn, Tripper, Max, Demir. How we made it in Africa+3Wikipedia+3Vanguard News+3
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After-sales service and warranties: The company offers warranties (several years or tens/hundreds of thousands of kilometers), has set up service points, recognizes the importance of parts availability. They have partnered with energy and lubricant firms (e.g. TotalEnergies) to ensure better maintenance and service infrastructure. Vanguard News+1
Competition & Nigeria’s Auto History
To understand the scale of Nord’s ambition, you need to look back at Nigeria’s broader automotive industry: its peaks, declines, and current revival.
A Brief History
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Early assembly operations date to the 1950s-70s: Bedford, Peugeot, Volkswagen, Leyland, SCOA, among others, had joint ventures or local assembly plants. Wikipedia+1
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The 1970s oil boom led to government policies encouraging local assembly, technology transfer, and protectionist import duties. The idea was vertical integration (local content increasing over time). But foreign exchange shortages, economic instability, rising costs, and later policy shifts hurt performance. By the 1980s many plants were running under capacity. Wikipedia+1
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Liberalization and more liberal import policies eroded the competitive edge of local assemblers; many went under or scaled down. The import of used vehicles (often “Tokunbo” cars from Europe, Asia) filled demand. These cars are often cheaper upfront (though higher ownership costs, maintenance, imported spare parts, etc.). These imports have been a huge part of the vehicle market in Nigeria. How we made it in Africa+1
Current Players & Competition
Several indigenous automakers are now vying to fill local demand and reduce reliance on imports:
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Innoson Vehicle Manufacturing (IVM), based in Nnewi, Anambra: produces buses, parks of SUVs, trikes (“kekes”), working on local content. Wikipedia+2Wikipedia+2
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Proforce Limited: more focused on specialized vehicles, defence armoured vehicles, exports, etc. Wikipedia
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Coscharis Motors, among others, assemble foreign brands locally under license. These foreign brands have better product recognition, existing service networks, etc., which Nord and others must compete with. Auto Journal Africa
Also, the policies of NAIDP (Nigeria Automotive Industry Development Plan) launched some years back, provide preferential tariffs for companies importing SKD (semi knocked down) or CKD (completely knocked down) kits for local assembly. These policies help reduce import duties on parts (versus fully built vehicles) and encourage local assembly. How we made it in Africa
Challenges ahead
For Nord (and indigenous automakers generally), the road is not without obstacles.
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Demand & Consumer Perceptions
Many Nigerians are accustomed to buying used foreign vehicles; there is prestige and a perception of higher reliability with certain foreign brands. Convincing consumers to opt for local new vehicles requires both performance and reputation. Ajayi has noted historically weak local patronage as a barrier. Carmart Africa+1 -
Price & Affordability
Nigeria has challenges of inflation, currency depreciation, import duty surges, high cost of imported parts, etc. These all affect pricing. Even when manufacturing locally, many crucial components still have to be imported. Affordability is a key concern: average incomes are low compared with car prices. Financing terms are also often steep. Carmart Africa+1 -
Scale
Local plants are small; initially production is low. Reaching economies of scale is difficult. As of mid-2020s, capacity could be expanded with investment and demand, but current demand (and capital constraints) limit ability. The Guardian Nigeria+2How we made it in Africa+2 -
After-sales, parts, warranties
Ensuring parts availability, reliable servicing, and support is central to building trust. Customers expect foreign brands to have spare parts available everywhere—local brands must build networks. One of Nord’s strategies is partnering for lubricants and integrating service networks. Vanguard News+1 -
Policy & Tariffs
The government’s role is vital: tariffs, import duties, regulations, incentives, subsidies, financing programmes or credit facilities for buyers of locally assembled cars. Nord benefits from NAIDP-type policies but more stable, favorable, consistent policy is needed. Changing government policies or regulatory delays impact business. How we made it in Africa+1 -
Capital & Supply Chains
Procurement of reliable components, quality control, establishing design, safety, and regulatory compliance (e.g. crash tests, emissions, etc.) is capital intensive. Sourcing from abroad can be slow, expensive, or disrupted. Local parts manufacturing is limited. How we made it in Africa
Regional Expansion, Export & Sales Beyond Nigeria
Despite challenges, Nord has already made inroads outside Nigeria. According to recent reporting, Nord has started selling vehicles in Ghana, Ivory Coast, and Egypt. CediRates These exports are important for several reasons:
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They validate the quality and competitiveness of the vehicles outside Nigeria.
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They expand the market size, which helps amortize fixed costs and improve economies of scale.
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They help bring foreign exchange revenue.
Also, Nord’s aim is not merely to serve Nigeria but to be a pan-African automaker. The goal is to produce value-for-money vehicles that are designed for African contexts (hot climate, rough roads, patchy service infrastructure, fuel issues) while meeting global standards. How we made it in Africa+1
Recent Moves & Recognitions
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In 2024, Nord won “CNG-powered mini-bus brand of the year” and special recognition for the Nord A9 at the Nigeria Auto Journalists Association (NAJA) Awards. Vanguard News
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It launched the Nord A9 luxury SUV to enter (or further stake out) premium segments, while still trying to keep price relative to value competitive. Vanguard News
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In mid-2025, Nord signed a partnership with TotalEnergies Nigeria to become its exclusive lubricant partner, and to expand its aftersales network by integrating with TotalEnergies’ lube bay distribution. This strengthens ownership and maintenance support for Nord buyers. Vanguard News+1
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Nord has also been recognized as CEO of the Year 2024 (Private Sector) by LEADERSHIP Newspapers for its contributions to Nigeria’s automotive sector. Leadership News+1
How Nord Competes with Foreign Brands
To see how Nord stacks up compared with imported foreign vehicles (new or used), here are some competitive levers it uses:
| Competitive Factor | Nord’s Strategy / Positioning | Foreign Brands (Imported / Used) |
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| Price | Tries to price ~30% lower than comparable foreign brands; savings from local assembly, lower shipping/import duties on CKD/SKD kits. How we made it in Africa+1 | Used imports often cheaper upfront but hidden costs (maintenance, spare parts, older technology). New foreign cars are expensive due to taxes, shipping, exchange rate. |
| Warranty & After-sales | Warranty offered, service network being built; agreements (e.g. with TotalEnergies) to ensure availability of oils, lubricants, service points. Parts sourcing being improved. Vanguard News+1 | Foreign brands may have strong reputation, many existing service centres; used import cars may suffer from lack of parts locally, or uncertainty about condition. |
| Local Fit & Durability | Designed with local road conditions, climate, fuel realities in mind. Pickups, SUVs with higher clearance, etc. Models like Tank, Tusk intended for uses common in Nigeria. Vanguard News+1 | Some foreign cars are over-engineered for foreign climates (or made for smoother roads), or built to specs that cost more to maintain locally. But foreign brands often have more prestige. |
| Consumer Perception / Brand Trust | New (and growing), needs to build trust. Winning awards, recognition, ensuring reliability helps. Local brand stigma is slowly changing. How we made it in Africa+1 | Established brands have brand loyalty, proven track record. Many consumers trust foreign brands more, even used ones. |
| Policy & Incentives | Benefiting from tariffs for SKD/CKD, local content policies. But more consistent government support is needed. How we made it in Africa+1 | Foreign brands usually subject to higher import duties; used imported cars often cheaper but may be taxed aggressively. |
What the Future Might Hold
To fulfill its promise, Nord and other local automakers in Nigeria will need to push forward in a number of areas:
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Scaling up production to reduce per-unit cost, negotiate better with suppliers, improve bargaining power, and meet both local and export demand.
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Deepening local content: manufacturing more components locally (plastics, steel, electronics), which would reduce reliance on imports, bring down costs, and build local supplier capacity.
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Improved financing & credit access: for both buyers and manufacturers. Making vehicle ownership more accessible (through financing schemes) can help boost demand.
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Stable policy environment and support: including favorable tax regimes, import duty structures, incentives for local content, possibly government procurement being biased toward local brands.
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Building brand reputation: through quality, durability, safety, after-sales, visibility. Awards, exports, recognition help.
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Expansion across Africa: leveraging regional markets – West Africa, North Africa – where demand exists, transport/logistics make exports feasible. Nord’s sales to Ghana, Ivory Coast, Egypt already indicate regional footprint can grow. CediRates
Conclusion
Oluwatobi Joshua Ajayi’s story from managing foreign vans to founding Nord is emblematic of both the challenges and the promise of indigenous automobile manufacturing in Africa. Nord Automobiles is not just a business venture—it’s part of a broader push for industrialisation, job creation, reducing foreign exchange outflows, and giving car buyers choice: local quality, reliable vehicles designed for their environment, without paying the premium foreigners charge.
While the path forward is steep—demand, scale, policy, trust, parts supply and cost all test the resolve—Nord is among the few companies showing tangible progress. Its growing lineup, regional sales, partnerships, and recognition suggest that the dream of an African car brand being more than a novelty is becoming closer to reality.