Nissan and West African conglomerate Stallion Group are set to jointly launch vehicle assembly in Nigeria.
This move is in expectation of final approval by the Federal Government of the new Automobile Industrial Policy, aimed at encouraging the development of the auto industry in Nigeria.
It would make Nissan the first major international manufacturer to launch vehicle assembly in the country following the new legislation.
The parties have signed a memorandum of understanding, under which, Stallion - currently Nissan's exclusive distributor in Nigeria - will increase capacity at its existing plant, VON Automobile in Lagos.
Stallion currently produces commercial vehicles at the facility. As part of the plan, the plant's annual capacity will be expanded to 45,000 units to assemble a range of cars, light duty trucks, pickups and vans.
While the full details of the product lineup has not been revealed, the first product will be Nissan Patrol SUV and will be introduced in spring 2014.
Capacity at the plant will also be opened to Nissan's Alliance partner Renault, to be utilized based on future business needs.
Nissan President and CEO Carlos Ghosn said the company welcomes the proactive measures being taken by the Government of Nigeria to encourage inward investment and job creation driven by local auto manufacturing.
"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 of this market and across the broader continent," Ghosn added.
