Nissan is set to become the first major car-maker to open a factory in Nigeria following a legislation change.
Signing a Memorandum of Understanding with West African conglomerate Stallion Group, Nissan is now waiting for Nigerian government to give a final approval to the new Automobile Industrial Policy, designed to encourage development of the automotive industry in Nigeria.
The company believes the Lagos-based facility could become a future hub for Nissan’s expansion in Africa.
As a part of the project, Nissan will expand Stallion’s facility in Lagos, aiming at annual production capacity of 45,000 vehicles, involving a range of cars including light duty trucks, pickups and vans.
It is believed the first car, probably a Nissan patrol SUV, will leave the Nigerian production line in the spring of 2014.
Capacity at the plant will also be opened to Nissan's Alliance partner Renault, to be used according to future business needs.
"We welcome the proactive measures being taken by the government of Nigeria to encourage inward investment and job creation driven by local auto manufacturing,” said Nissan’s president and CEO Carlos Ghosn.
“Together with our local partner, Nissan is preparing to make Nigeria a significant manufacturing hub in Africa. As the first-mover in Nigeria, we are positioned for the long-term growth in this market and across the broader continent," he said.