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Volkswagen to Develop Automotive Hub in Nigeria

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By Modupe Gbadeyanka

A deal to allow Volkswagen develop an automotive hub in Nigeria has been signed between the automaker and the federal government.

The Memorandum of Understanding (MoU) was sealed last week by both parties involved in the agreement.

A statement issued from Volkswagen said it signed the contract because it identified Nigeria as a country with significant potential for the growth in the new vehicle market.

With the agreement, the Nigerian government and Volkswagen Group South Africa (VWSA) will come up with a joint vision to secure the development of Nigeria as an automotive hub with an enabling policy framework that facilitates this vision is to be developed based on commercial viability.

Business Post reports that this was part of the gains of the visit of the Chancellor of Germany Angela Merkel to Nigeria last Friday, where he met with President Muhammadu Buhari in Abuja.

The Head of Volkswagen Sub-Saharan Region, Thomas Schaefer signed the agreement on behalf of Volkswagen with the Nigeria’s Minister of Industry, Trade and Investment, Dr Okey Enelamah.

This comes a day after the signing of the MoU in Ghana in the presence of Chancellor Merkel and Vice President of Ghana, Mahamudu Bawumia whereby Volkswagen committed to set up a vehicle assembly and conduct a detailed feasibility study for the development of an integrated Mobility Solution in Ghana.

In the MoU, Volkswagen undertakes to implement a phased approach in relation to the assembly of vehicles, initially from assembly kits with the long term view of establishing Nigeria as an automotive hub on the West Coast of Africa. This will include establishing a training academy in conjunction with the German Government, which will train the initial employees.

The academy will also provide broader technical training in automotive skills. It is also intended that a comprehensive Volkswagen vehicle and service network is developed in the country subject to commercial viability.

In turn the Nigerian Government undertakes to accelerate the approval of the Nigerian Automotive Policy, currently under consideration. This includes the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles.

The government has committed to providing a conducive legislative environment that will encourage the manufacturing of motor vehicles in Nigeria.

“The MoU is a major step in our walk towards the development of the automotive industry to achieve its potential contribution to the continuous economic development of the country.

“We believe in the strategic and catalytic role of the automotive industry in the diversification of the Nigerian economy and we remain committed to encouraging and partnering with relevant stakeholders, especially investors and friends of Nigeria.

“Our overall objective is to restore assembly and develop local content, thereby creating employment, acquiring technology and reducing pressure on the country’s balance of payment,” Mr Enelamah said.

On his part, Mr Thomas Schaefer said, “This week Volkswagen has been able to demonstrate with conviction that it is serious about its intentions in Sub-Saharan Africa. We are well placed to become a dominant player in Africa, as the continent continues to stabilise and develop economically, as the last frontier for the automotive industry.”

Volkswagen has a fully-fledged manufacturing facility in South Africa, and assembles vehicles in Kenya, Algeria as well as in Rwanda, in conjunction with an Integrated Mobility Solution offering Community Car Sharing and shortly to be launched Ride Hailing.

Under its TRANSFORM 2025+ brand strategy, Volkswagen is strengthening the regions and focusing on new up-and-coming markets. Alongside North and South America as well as China, the Sub-Sahara region plays an increasingly important role. Although the African automotive market is comparatively small today, the region could develop into an automotive growth market of the future.

Volkswagen will continue to grow its importer network in Sub-Saharan Africa and explore other opportunities for growth and development. As a next step, exploratory talks are being held with the Government of Ethiopia.

“We are only starting with our initiatives in Africa and will continue to develop sales and service networks where applicable. We are also looking at future assembly locations to determine if the markets have the potential and the necessary policy frameworks to be developed, to accommodate vehicle assembly,” added Mr Schaefer.

Thomas Schaefer is also the President of the Association of African Automobile Manufacturers and stated in his capacity as the President that he believed that it was important that a Pan African Auto pact be developed to promote and grow a connected Auto Industry in Africa.

“Africa’s time is now and with good alignment between the African countries with automotive aspirations we can create intra African trade and a Win-Win situation for all,” concluded Mr Schaefer.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Passengers Lament as Uber, Bolt Drivers Strike in Lagos

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Uber Technologies System Nigeria Limited

By Dipo Olowookere

Rising operational costs and declining earnings have forced drivers of ride-haling platforms like Uber and Bolt to embark on a three-day warning strike in Lagos.

This situation has not gone down well with their customers in the metropolis, who have expressed frustration over the strike.

“Though I am not happy with the action of the drivers, I feel for them because they operate in a harsh environment,” a customer of Bolt, Mr Seyi Adeniji, said.

When Business Post checked the Uber app on Monday morning to book a ride from Egbeda to Megida Ayobo, both in the Alimosho Local Government Area of Lagos State, it was functional, but with fewer drivers available for pick-up, with prices ranging from N5,200 on Uber X to N7,400.

One of the drivers, who spoke with this newspaper but begged for anonymity, said efforts by them for improved packages have failed.

It was gathered that when nothing concrete came out from talks with operators of the platforms, drivers, under the aegis of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), Lagos State Chapter, decided to begin a warning strike from March 16 to 18, 2026, to further press home their demands.

They want an immediate review of ride fares to reflect current economic conditions. They also seek a cut in commission charges by ride-hailing companies, and want the introduction of a guaranteed minimum trip fare.

The drivers have asked for insurance coverage, an end to unjust deactivation of driver accounts without proper investigation, and greater transparency in how fares and commissions are calculated.

In addition, they want improved safety protections for drivers through better rider-verification systems, emergency panic buttons, and faster response mechanisms in cases of security threats.

According to a statement from the spokesman of the organisation, Mr Steven Iwindoye, many drivers are struggling to remain financially viable due to increasing fuel prices, vehicle maintenance costs, inflation and other living expenses, while fare structures on ride-hailing platforms have remained largely unchanged.

“Drivers operating on platforms such as Uber, Bolt, inDrive and Lagride continue to face rising operational costs, including the high price of fuel, vehicle maintenance, inflation and daily living expenses.

“Unfortunately, the fare structures and policies of these companies have not been adjusted to reflect these economic realities,” the statement said.

It was stressed that many drivers now work extremely long hours yet still struggle to earn a sustainable income, clarifying that, “This strike is not intended to punish commuters but to demand fair treatment, economic sustainability and safety protections for the drivers who power the ride-hailing industry.”

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InDrive Fetes Abuja Drivers in Ramadan Shukran Campaign

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inDrive Ramadan Shukran Campaign

InDrive, a leading global ride-hailing platform operating in nine African countries, is celebrating Ramadan season with a targeted driver appreciation programme in Abuja, tagged’Ramadan Shukran campaign’, with active Muslim drivers on the platform to receive curated food hampers and personalised thank-you cards.

The initiative, designed to strengthen the company’s relationship with its driver community at a time when many are working long hours while observing the fast, is not based on financial incentives or performance-based rewards but on practical support for the month and a direct expression of appreciation for the role drivers play in the platform’s daily operations.

Four Abuja-based Muslim content creators who understand the social and religious considerations of the period have been delivering 200 hampers across key districts in the city. The hampers, which contain everyday Ramadan essentials to support suhoor and iftar, including staple foods and beverages commonly consumed during the fasting period, come in warm-toned Ramadan packaging and include a handwritten-style card from Indrive with the message “Shukran,” which means thank you.

Each creator is assigned a specific coverage area to ensure broad reach and local relevance, with deliveries taking place around prayer times and fasting schedules, which are captured with the participating drivers’ consent.  The campaign, serving as a broader positioning goal to publicly recognise drivers through creator-led storytelling, will further reinforce inDrive’s people-first identity and increase awareness among drivers who are not currently on the platform.

The campaign reflects inDrive’s deliberate shift toward relationship-building through culturally relevant engagement during one of the most significant periods in the Muslim calendar.

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Glovo Unveils New Road Safety Feature for Safety of Nigerian Riders

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Glovo in Nigeria

By Modupe Gbadeyanka

To enhance the safety of riders in Nigeria, a leading multicategory technology company, Glovo, has launched a new road safety feature on its mobile application.

The initiative was introduced in collaboration with the Federal Road Safety Corps (FRSC). It was designed to address key challenges in Nigeria’s fast-growing e-commerce and mobility ecosystem by implementing data-driven preventive measures to enhance road safety.

Also, Glovo has concluded plans with the FRSC to organise a road safety training. This has already been done in Lagos, with the training coming to Abuja on Friday, strengthening rider protection and road safety standards across Nigeria.

The Interim General Manager for Glovo Nigeria, Ms Reni Onafeko, said the new feature reflects the company’s long-term investment in safety, innovation, and responsible business growth in Nigeria.

Ms Onafeko explained that the feature combines advanced technology with structured training to ensure safer roads for riders and the broader public, highlighting the feature’s voluntary opt-in nature, explaining that riders can use it to improve their safety.

“The launch of this new feature reflects our commitment to building a culture of prevention rather than reaction. By equipping riders with real-time data about their riding behaviour, we are empowering them to make safer decisions every day. This initiative is about protection, education, and continuous improvement.

“Our approach combines innovation, partnership, and human-centred design. We are not just introducing a feature; we are reinforcing our responsibility to protect the people who power our platform every day.

“By working closely with regulators and organising safety training for riders, we are contributing to safer roads and a more sustainable ecosystem in Nigeria,” she stated.

In his remarks, the Senior Special Assistant to the Lagos State Governor on Transportation Education and Innovation, Mr Oluwatobi Idowu, noted that the training was a good initiative by Glovo Nigeria, urging riders to take advantage of the unique opportunity to familiarise themselves with the necessary safety rules while driving.

On his part, the Assistant Corps Commander for the Lagos Sector Command of the FRSC, Mr Philip Ogah, who represented the Lagos State Sector Commander, Mr Kehinde G. Hamzat, commended Glovo Nigeria for facilitating a refresher course for riders.

He noted that the training was necessary to help riders be really conscious about their safety, stating that it was better for them to be equipped with such interactive safety tools.

“There are levels of preparation before driving on the road. As a rider, learning is key and a continuous process. This kind of training makes you more informed as you drive.

“As a technological platform, it is good to see that Glovo keeps on ensuring that riders are trained to have a better usage of and better behaviour on Nigerian roads,” the FRSC chief in Lagos stated.

Also speaking, the Head of Operations at Glovo Nigeria, Oluwaseun Okugboye-Bello, explained that the introduction of the safety feature on the Glovo app has become an essential new addition for riders’ self-improvement while collaborating with the platform, noting that it was incorporated into the app to protect riders, commuters, and pedestrians.

At the end of the training session, certificates were presented to 70 participants.

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