Auto
Volkswagen Opens New Vehicle Assembly Plant in Ghana
By Modupe Gbadeyanka
A new 5,000m² vehicle assembly facility located near the Port of Tema in Accra has been opened by Volkswagen as part of its commitment to the development of the automotive industry in Ghana.
Volkswagen was the first automotive company to be registered under the Ghana Automotive Development Programme (GADP), and this new investment strengthened the brand’s presence in the country and the region.
Recall that in August 2020, Volkswagen awarded an assembly contract to Universal Motors Limited (UML) as its licenced importer in the West African country.
But with this latest development, Volkswagen will take over the new vehicle assembly responsibility from UML, which assembled models such as Tiguan, Teramont, Passat, Polo, Amarok and T-Cross on behalf of Volkswagen using Semi-Knocked Down (SKD) assembly kits imported from South Africa.
“Ghana is an important market for our Sub-Saharan Africa expansion plans, especially in West Africa, where we have identified opportunities of developing a collaborative automotive industry hub amongst the countries in the region.
“The hub concept will ensure that each country with an automotive development policy or economic interest in the automotive industry has an important role to play in the supply value chain. We believe AfCFTA will be the catalyst which will unlock trade barriers and promote regional collaboration amongst the countries,” the Chairperson and Managing Director of Volkswagen Group South Africa, Ms Martina Biene, said.
“Volkswagen is fully committed to Ghana and in supporting its industrial transformation agenda despite the current economic challenges facing the country. We are here for the long haul.
“Our company believes in long-term investments which are nurtured through mutual relationships with like-minded partners.
“Ghana’s commitment to the development of its automotive industry is evident in the GADP, which is still the blueprint automotive policy in the region in terms of creating an enabling environment for the establishment of an automotive industry in Sub-Saharan Africa,” Ms Biene added.
Ghana is the fourth Volkswagen assembly location in Sub-Saharan Africa. The other locations are in South Africa, where Volkswagen has been manufacturing vehicles for over 72 years, as well as Kenya and Rwanda.
Volkswagen has a presence in 17 countries in Sub-Saharan Africa, where it sells passenger and commercial vehicles through licensed importers.
“As the last frontier for the global development of the automotive industry, Sub-Saharan Africa has become very important for the sustainability of Volkswagen. We are therefore accelerating our growth strategy on the continent by playing a pioneering and leading role in the development of the automotive industry,” commented Ms Biene.
By Modupe Gbadeyanka
A bill aimed at prohibiting hawking, trading or preaching inside commercial vehicles in Nigeria has been passed by the Senate.
The bill known as the Federal Road Safety Corps (Amendment) Bill, 2026, imposes fines between N50,000 and N100,000 for violations if assented to by the President.
The piece of legislation was passed by the red chamber of the National Assembly on Thursday and should later be transmitted to President Bola Tinubu for assent.
Members of the upper chamber of the parliament explained that the law was amended to discourage distractions in commercial vehicles and improve the safety of commuters.
In addition, motorists who fail to cooperate with officials of the Federal Road Safety Corps (FRSC) during roadside breath tests conducted on reasonable suspicion are liable to fines or imprisonment or both.
Lawmakers noted that this was to improve compliance with road safety regulations and reduce road crashes, as fines for driving under the influence of alcohol or intoxicating drugs were raised to N100,000 from N5,000, with the risk of spending two years behind bars.
It was also proposed that disobedience to traffic lights, road signs, pavement markings and other traffic control devices will now attract N100,000, while the fine for speed limit violations is now N100,000, with reckless driving now a fine of N100,000 or two years’ imprisonment.
By Dipo Olowookere
Residents and motorists plying the Aina Obembe Road in Baruwa, Ipaja, Lagos, may soon heave a sigh of relief as the excruciating traffic gridlock being experienced in the area both day and night may soon be a thing of the past.
This is because the chairman of Ayobo-Ipaja LCDA, Mr Lukmon Agbaje, has directed those involved in indiscriminate truck parking along the road to remove the heavy-duty vehicles within one week, threatening to invoke appropriate enforcement measures for noncompliance with this directive.
Speaking during a meeting on Wednesday with the management of SENA Company, which owns the affected trucks, as well as the leadership of Oluwadara CDA and other key stakeholders like the Lagos State Traffic Management Authority (LASTMA), at the council’s secretariat, Mr Agbaje frowned at the prolonged inconvenience suffered by the community, stressing that public roads must remain accessible and safe for all users.
He emphasised the need for a collaborative approach in resolving the issue without undermining legitimate business operations, noting that he’s focused on finding a lasting solution to the gridlock experienced between Oluwaga and Aina Obembe, where parked trucks have continued to obstruct traffic, disrupt business activities, and pose safety concerns for residents and motorists.
He tasked the firm and the CDA to jointly identify and implement alternative parking arrangements that would remove all trucks from the affected roads and restore the free flow of traffic.
He declared that, “The welfare of our people remains our highest priority. No individual or corporate organisation should obstruct public infrastructure or create avoidable hardship for residents. We must ensure that economic activities coexist with public safety, order, and convenience.”
The council chief reaffirmed his administration’s commitment to promoting orderly development, ensuring safe and accessible roads, improving traffic management, and creating an environment where businesses can thrive alongside the well-being of residents.
By Adedapo Adesanya
The federal government has cut import levies on new and used vehicles by as much as 10 per cent in a move aimed at reducing the cost of vehicle importation, even as it commenced the implementation of a new Green Tax surcharge.
According to an update issued by the Nigeria Customs Service (NCS) on Wednesday, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been slashed from 15 per cent to five per cent under the 2026 Fiscal Policy Measures, which took effect on July 1, 2026.
The customs said the policy is designed to ease the cost of vehicle imports while advancing the government’s environmental sustainability objectives through the newly introduced Green Tax.
The implementation also reduces the overall import duty on fully built passenger vehicles from 70 per cent to 40 per cent.
As part of the Green Tax framework, a new environmental surcharge of between two per cent and four per cent will apply to petrol-powered vehicles with engine capacities exceeding 2,000cc. However, mass transit buses, electric vehicles, and passenger cars with engines below 2,000cc are exempt from the surcharge.
Beyond the automobile sector, the fiscal measures also lower import duties on several essential goods. The duty on imported rice has been reduced from 70 per cent to 47.5 per cent, while crude palm oil now attracts a 28.75 per cent duty.
In addition, import duties on agricultural and manufacturing machinery have been completely removed to support local production, while Waste PET has been added to the export prohibition list to encourage domestic recycling.
