Volkswagen has announced plans to set up an e-tractor manufacturing plant in Nigeria, marking a significant step towards boosting agricultural mechanization in the country.
The initiative, supported by the German government, aims to enhance Nigeria’s agricultural sector by introducing electric tractors, which are expected to revolutionize farming practices and increase productivity.
Nigeria’s Minister of Foreign Affairs, Hon. Yusuf Maitama Tuggar, revealed this development following a meeting with Germany’s Minister of State, Mrs. Katja Keul, during the G20 Foreign Ministers’ Meeting.
“We welcomed Volkswagen’s plans to introduce e-tractors to Nigeria, backed by the German government, as part of efforts to enhance agricultural mechanization,” Tuggar said.
This move is part of broader efforts by Nigeria and Germany to strengthen economic and industrial ties, with a focus on fostering economic partnerships, improving regional security, and encouraging cultural collaboration.
Volkswagen’s planned return to Nigeria after decades of absence signals growing confidence in the country’s economy, following years of economic instability and mismanagement.
Despite having local players in the automotive industry, Nigeria has struggled to attract major global manufacturers due to the delayed implementation of the Nigeria Auto Industry Development Plan. Although the plan was approved by the Federal Executive Council, it has yet to be signed into law.
Last year, Nigeria missed an opportunity to host Volkswagen’s new Body Shop and Assembly Plant, as the company opted to partner with the Egyptian government instead. This decision followed Egypt’s launch of the Automotive Industry Development Programme (AIDP), aimed at boosting local vehicle production, attracting investments, and promoting sustainable automotive practices.
Volkswagen has established a “Sub-Saharan” region to reinforce its presence across Africa. The newly formed Volkswagen Group Africa oversees the company’s strategic direction on the continent, where the brand has maintained a longstanding reputation.
Currently, Volkswagen operates manufacturing and assembly plants in South Africa, Kenya, Rwanda, and Ghana. In Rwanda, the company has successfully launched the GenFarm Project, an initiative offering e-powered mechanized farming services to rural communities.
Last year, Volkswagen inaugurated a multifunctional facility in Gashora, Rwanda, about 60km from Kigali, to pilot modern farming techniques using e-tractors with swappable batteries. This innovation aims to make sustainable farming more affordable and efficient for local farmers.
