Business
The Rise and Fall of Volkswagen in Nigeria’s Auto Industry
Volkswagen of Nigeria Ltd was officially established on 7 February 1973 in Ojo, Lagos, as part of a major effort to localize vehicle production in Nigeria. The company assembled the popular Volkswagen Beetle, which became a symbol of reliability and affordability. During the late 1970s and early 1980s, the Beetle was a common sight on Nigerian roads and was widely used by civil servants, students, and taxi drivers.
By the early 1980s, however, Nigeria’s economy began to face serious challenges, including the country’s first major fuel shortage. As petrol prices rose, consumers began to favor more fuel-efficient Japanese vehicles, such as Toyota and Datsun models. These cars were not only cheaper to maintain, but they also offered better mileage and were seen as more modern.
This shift marked the beginning of a decline for locally assembled European cars like the Beetle and Peugeot 504. The Structural Adjustment Program (SAP) introduced in 1986 further affected local industries, including auto assembly plants. Many workers and local auto technicians had to adapt, shifting focus from European to Asian car brands.
By the 1990s, Volkswagen of Nigeria had significantly reduced operations. The plant eventually shut down before later attempts at revival in the 2000s. The story of Volkswagen in Nigeria reflects broader changes in the country’s economic and industrial landscape.
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