Nigeria is positioning itself at the centre of Africa’s automotive transformation as Innoson Vehicle Manufacturing (IVM) moves closer to commissioning a large-scale factory dedicated to compressed natural gas (CNG) trucks and electric vehicles (EVs). This new development could reshape the continent’s clean transport landscape.

The new facility, currently nearing completion, is expected to rank among the largest CNG vehicle manufacturing plants globally by production capacity. It further reinforces Nigeria’s ambition to move beyond vehicle assembly into advanced, large-scale automotive manufacturing.

For Nigeria’s automotive industry, long constrained by heavy import dependence, limited local content and inconsistent policy implementation, the Innoson expansion marks a significant shift. It aligns with broader efforts to deepen domestic manufacturing, reduce foreign exchange pressure from vehicle imports, and support Africa’s gradual transition away from petrol and diesel-powered transport.

Innoson’s long road in Nigerian auto manufacturing

Founded by industrialist Innocent Chukwuma, Innoson Vehicle Manufacturing has for over a decade stood out as Nigeria’s most prominent indigenous automaker. Unlike earlier assembly-focused ventures, Innoson pursued local manufacturing and component integration, producing buses, trucks, SUVs and utility vehicles tailored to Nigerian roads and operating conditions.

While the company has faced challenges common to Nigeria’s industrial sector, including infrastructure gaps, access to finance, and policy uncertainty, it has remained a cornerstone of the country’s automotive ambitions, supplying vehicles to government agencies, transport operators and private buyers.

The new CNG and EV factory represents Innoson’s most significant leap yet, both technologically and strategically.

A factory built for Africa’s energy transition

According to Chukwuma, the new plant will have the capacity to produce up to 3,000 vehicles annually across six different categories, spanning gas-powered commercial trucks and electric vehicles. Equipped with modern manufacturing technology, the facility is expected to be completed within the next few months.

“This facility will be among the largest CNG vehicle plants in the world,” Chukwuma said, reaffirming his long-held commitment to building vehicles in Nigeria for Nigerian and African markets.

The timing is strategic. Across Africa, governments are increasingly promoting CNG and electric transport as part of efforts to cut fuel costs, reduce emissions and leverage domestic gas reserves. Nigeria, which holds one of the world’s largest proven natural gas reserves, has identified gas-powered transport as a key pillar of its energy transition strategy.

Industry analysts say Innoson’s expansion could help anchor regional supply chains for clean vehicles, reducing reliance on imports from Asia and Europe while encouraging local component manufacturing.

Jobs, skills and industrial capacity

Beyond production, the factory is expected to have a substantial employment impact. Chukwuma disclosed that Innoson plans to hire about 2,000 additional workers in 2026, adding to its position as one of Africa’s largest private-sector employers.

“In 2026 alone, we intend to employ about 2,000 additional workers following the establishment of this new factory,” he said, noting that the expansion reflects his belief in industrial growth driven by Nigerian talent.

A key feature of the project is a technical training programme aimed at young Nigerians. The scheme will provide hands-on industrial training, with participants either absorbed into Innoson’s workforce or certified to seek employment across Nigeria’s manufacturing sector.

Chukwuma argued that skills development and job creation are essential not only for industrial growth but also for addressing wider social challenges, including youth unemployment and insecurity.

Implications for Nigeria and the continent

If successfully executed, the CNG and EV factory could strengthen Nigeria’s claim to leadership in Africa’s automotive future, particularly as countries across the continent rethink transport in response to climate pressures, fuel volatility and urban growth.

For Nigeria, the project underscores the potential of indigenous manufacturers to drive industrialization when supported by scale, technology and market demand. For Africa more broadly, it signals the emergence of locally rooted automotive champions capable of competing in next-generation vehicle manufacturing.