Market Overview

Why Nigeria?

Nigeria is one of Sub-Saharan Africa’s largest economies. Its GDP in 2017 was estimated at USD376.4 billion. It was a decline compared to the preceding years (2014, 2015, and 2016), primarily because of a decline in oil prices. The economy of Nigeria has not been doing well over the last few years. Data show that during the period 2010-2016, its GDP increased by about 10 percent, from a level of USD 369 billion in 2010. However, during the intermittent year such as 2014, Nigeria registered significant growth in its GDP, when it was valued at over USD 568 billion

Nigerian economy relies heavily on oil as its main source of foreign exchange earnings and government revenues. Within the economy, services are the largest sector of the economy, accounting for about 50 percent of the total GDP. Agriculture, which in the past was the biggest sector, now weighs around 23 percent. Crude Petroleum and Natural Gas constitute 11 percent of the total GDP. Industry and Construction account for the remaining 16 percent of GDP.

The commercial hub of the country Lagos has over 21 million inhabitants and is the largest city in Africa, in fact, Lagos State’s GDP is $131 billion in its own right, making it the 6th largest economy in Africa.

The Auto Parts Business in Nigeria

The auto parts business in Nigeria is booming. With so many cars on the roads and an ever-growing population, there is a huge demand for car parts. In Nigeria, the market is enormous. With a population of over 190 million and a middle class of over 40 million people. the country spends about 14 billion dollars importing vehicles and its huge market is the gateway to other West African markets of over 350 million people. Furthermore, there are also a lot of small businesses that import and sell car parts.