Effects of Naira Devaluation on the Automobile Industry

The devaluation of the Naira, Nigeria’s national currency, has significant repercussions across various sectors of the economy, including the automotive industry. This article explores the multifaceted impacts of Naira devaluation on automotive businesses both locally and internationally. We will delve into changes in import costs, shifts in consumer behavior, challenges faced by industry players, and government interventions to provide a comprehensive analysis of the effects of currency devaluation on the automotive sector in Nigeria.

Overview of Naira Devaluation

Naira devaluation is akin to your favorite smoothie suddenly costing double. In simple terms, it’s when the value of the Nigerian currency depreciates against other currencies, impacting everything from the price of your morning coffee to that dream car you’ve been eyeing.

Historical Context and Trends

Naira devaluation behaves like a recurring character – it appears, wreaks havoc, and leaves us wondering what’s next. By examining historical data and trends, we can better understand how this recurring event impacts the automotive industry.

Impact of Exchange Rate Fluctuations

Exchange rate fluctuations are like an unpredictable acquaintance who suddenly reappears – they can turn your budget upside down in an instant. Naira devaluation sends ripples through the automotive industry, affecting the cost of bringing new vehicles onto Nigerian roads

Effects on Imported Vehicle Prices

When Naira devaluation occurs, it’s like an unexpected sale – but not the good kind. Imported vehicle prices can skyrocket, making that “must-have” car suddenly feel more like a “maybe next time.”

Effects on Local Production and Manufacturing

Cost of Raw Materials and Components: Just as a car needs fuel to run smoothly, local production relies on affordable raw materials and components. Naira devaluation can increase these costs, putting local manufacturers in a difficult position.
Competitiveness of Local Production: In a market where every penny counts, the competitiveness of local production is crucial. Naira devaluation can shift the playing field, making it harder for local manufacturers to compete with imported options

Shifts in Consumer Demand and Purchasing Behavior

Like a GPS recalculating your route, Naira devaluation can steer consumer demand and purchasing behavior in unexpected directions, influencing what ends up in consumers’ garages.
Changes in Consumer Preferences: Naira devaluation can be the plot twist that alters what consumers seek in a vehicle – from flashy imports to more budget-friendly local options. We will explore how this shift in consumer preferences impacts the automotive market.
Affordability and Market Dynamics: When Naira devaluation strikes, affordability becomes a top concern for consumers. Market dynamics shift as purchasing power fluctuates, leading to challenges for both buyers and sellers.

Challenges and Opportunities for Automotive Businesses

The devaluation of the Naira can pose various challenges for automotive businesses, such as increased costs of importing parts and raw materials. However, it also opens up local production and sourcing opportunities, potentially reducing dependency on foreign exchange rates.

Risk Management Strategies

To navigate the uncertainties brought about by currency devaluation, automotive businesses can implement risk management strategies such as hedging against currency fluctuations, diversifying suppliers, and renegotiating contracts to mitigate financial risks

Exploring Export Opportunities

With a devalued currency, exporting locally manufactured vehicles and spare parts becomes more competitive in international markets. Automotive businesses can leverage this opportunity to expand their customer base and increase revenue

Government Policies and Interventions in Response to Devaluation

In response to currency devaluation, the government needs to implement policies and interventions to support industries like the automobile sector.
Tariff Adjustments and Trade Policies: Governments may adjust tariffs and trade policies to protect local industries from cheap imports and promote domestic production. These measures can create a conducive environment for automotive businesses to thrive in a devalued economy.
Sector-specific Support Initiatives: Governments may also introduce sector-specific support initiatives such as subsidies, tax incentives, and infrastructure development to boost the automotive industry’s competitiveness and stimulate growth despite currency devaluation.

Strategies for Surviving and Thriving in a Devalued Economy

To survive and thrive in a devalued economy, automotive businesses can adopt strategic measures tailored to the current economic conditions. Diversifying product offerings to meet evolving consumer preferences and market demands can help automotive businesses stay competitive and resilient. Creating innovative products and services can also generate new revenue streams.
Investing in technology and innovation is essential for automotive businesses to improve efficiency, reduce costs, and enhance product quality. Embracing technological advancements such as automation, digitalization, and sustainable practices can drive growth and competitiveness in a devalued economy.

The effects of Naira devaluation on the automotive industry highlight the complexities and challenges faced by businesses in navigating a volatile economic landscape. As stakeholders adapt to changing market dynamics, adopt strategic measures to mitigate risks, and capitalize on emerging opportunities, the resilience and innovation of the industry will be tested. By staying updated on market trends, implementing adaptive strategies, and fostering collaboration between the public and private sectors, the automotive industry in Nigeria can strive for sustainable growth in the face of currency fluctuations and economic uncertainties.

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Iyabusola Olorunfemi

General Manager, Legal Adviser/Company Secretary

Iyabosola Olorunfemi is the General Manager, Legal Adviser /Company Secretary of Mandilas Groupof Companies Limited.

Iyabosola is a lawyer with a wealth of experience in Legal practice. She graduated from University of Lagos where she obtained a Bachelor’s Degree in Law (LL.B), then proceeded to the Nigeria Law School where she obtained a Bachelor at Law (B.L). She is also a Chartered Company Secretary from the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN).

She has over 18 years of Corporate and Commercial Law experience spanning the Oil & Gas, Power, Mobility & Cooling Industry, alongside Company Secretarial, Corporate Governance, Regulatory and Compliance.

In the course of her career, she worked with Oando Plc, an integrated Oil and Gas Company for several years where she garnered the knowledge and skills as she rose through the ranks, in the Upstream, Mid-stream, Downstream and Power value chain of the Oil and Gas sector. She later joined IBILE Oil and Gas Corporation (IOGC), a State-owned entity as the pioneer Legal Adviser/ Company Secretary, where her immense value and contribution to the growth of the business and Board were recognised.

She has attended a number of Management and Commercial negotiation training from University of Dundee Scotland, Oxford Princeton London, Lagos Business School, Rocky Mountain Mineral Law Foundation Houston, Texas as well as Euromoney UK Legal Training.

She is a member of the Nigerian Bar Association (NBA) and an Associate Member of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN).

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About Mobility

Mandilas Motors has been a household name in the Nigerian Automobile industry for close to 70 years.

The Volkswagen brand was introduced to Nigeria by the company in the ’50s; even before the establishment of the Volkswagen Assembly plant in Nigeria. Mandilas was later involved in the distribution of other brands like Audi,Peugeot, Nissan, Daihatsu, Honda, Kia, and subsequently re-introduced the Skoda brand into Nigeria in the late ’90s.

The company is currently one of the accredited Toyota dealers in Nigeria, and a major player at that, with many awards to show for it since 2003. The Leasing unit is involved in fleet management and vehicle leases.

Brand New Vehicles:
Mandilas New Car Sales Department is one of the leading accredited Toyota Distributor in the country.

We are a major player in the sales of new Toyota vehicles in Nigeria. All new vehicles sold are backed up with a three year or 100,000km (whichever comes first) Manufacturer’s warranty; with the option of a Service plan offered with every new vehicle sold.

Various incentives are offered to our customers; and these include free registration, accessories, free service and much more based on terms and conditions of the sale.


Who we are

Mandilas Group Limited is an iconic Nigerian brand founded by John Basil Mandilas.

Our mission is to be the first-choice provider of quality and professional lifestyle solutions in Nigeria.

We are a company of ideas nurtured by a commitment to our clients.

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Marie-Therese Phido

General Manager, Sales & Marketing

Marie-Therese Phido has over 25 years’ experience working in Business Development, Strategy, Sales & Marketing, Brand Management and Corporate Communication. She worked for the foremost professional services firm in Nigeria, KPMG where she started her career and rose to the position of Associate Director and Head Sales & Markets for West Africa.

She then moved on to Deloitte as Director, West Africa Clients and industries Leader (Partner level), where her role involved coordinating business development and sales targeting for the region and working with teams and C-level executives across the region to actively secure medium to long term financial growth and strategic goals for the firm.

She is currently the General Manager, Sales and Marketing of Mandilas Group Limited, a leading indigenous trading and services conglomerate.

Marie-Therese is an alumnus of the London Business School, Harvard Business School and the Lagos Business School. She is also a member of the Chartered Institute of Marketing and the Institute of Directors. She has conducted several projects in strategy and go-to-market strategy, business growth, training sessions on sales & marketing, business development, business activation, branding, innovation, and customer service.

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Head of Treasury

Obi Chilo-Offiah is a vastly skilled Finance professional with expertise in Budgeting and Forecasting, Auditing and Financial reporting, Risk Management, Investment Analysis, Portfolio Management and Operations Management amongst others.

Obi joined the Mandilas Group as the Head of Treasury in 2020 and preceding this, he served as a Wealth manager and Private Banker with the First Bank of Nigeria in Private Banking, as the Audit Senior in the Asset Management Group in McGladrey, LLP Stamford, as an Associate who then progressed to be Manager at The Siegfried Group, LLP in New York; and in Deloitte & Touché LLP, Stamford as an Accountant who progressed to Associate and then Audit Senior.

He is the founder and the principal Partner of the Equinox Group Limited with a Bachelor’s degree in Business from the University of Hartford, USA.

Tunde Okeremi

General Manager, Cooling

Engineer Tunde Okeremi is a highly dynamic and result oriented professional with over 2years of progressive management experience mainly in the Oil and Gas and IT industry. She has effectively led and managed multi-discipline teams to deliver projects on time and within budget in the America, Asia, Europe and Africa. She continuously utilizes her leadership and communication skills to make sure that the goals and objective of the projects are well understood by all stakeholders and the executive management/client is carried along.

Client satisfaction is of topmost priority, so short and long- term analytical projections and a bird’s eye-view for a successful completion is a must for all her projects.

Engineer Tunde has extensive work experience in Deepwater Subsea, Topsides and Drilling Controls. She worked in engineering and project management roles in Subsea controls, intervention, surveillance for Shell USA and Nigeria; and as Drilling Controls Consultant for Exxon Mobil and Total in Offshore Norway, North Sea; Singapore and Offshore Brunei where she managed pre-commissioning, commissioning, system integration, startup for new and overhauled drilling rigs.

Engineer Tunde Okeremi has a Bachelor’s degree in Electrical Engineering from the University of Ilorin Nigeria, Masters in Business Administration (MBA) from Houston Baptist University, Texas US and Masters of Science (M.Sc.) in Electronics Communication and Computer Engineering from Nottingham University UK. She is a seasoned administrator and innovative leader.

Engineer Tunde Okeremi is a Member of the Institute of Electrical Electronics Engineers (IEEE), Professional Member of the Nigerian Society of Engineers (NSE), Registered Member Council for the Regulation of Engineering in Nigeria (COREN), Member, Society of Petroleum Engineers (SPE), Member Society of Women Engineers (SWE), Member Women in Energy Network (WEN).

Fatosin Anna

Head, Group Human Resources

Fatosin Anna is a seasoned Human Resources and Administration Manager with over twenty years’ experience.

She holds a Bachelor’s degree in Sociology and a Post Graduate degree in Industrial Relations and Personnel Management from the University of Lagos.

She is a Member of the Chartered Institute of Personnel Management of Nigeria (CIPMN) and a professional member of the Society of Human Resources Management amongst many other certifications. With proficiency in all key aspects of Human Resources Management, she has worked with top talents of several industrial sectors hence a versatile professional in the field.

She has served in ValuCard Nigeria Plc, Bell Oil and Gas Limited, Cakasa (Nigeria) Company Limited, RadissonBlu Anchorage Hotel, Swift Networks Limited, Shorelink Oil and Gas Limited as the Human Resources and Administration Manager, before joining the Mandilas Group in 2019 where she holds the position of the Head of Human Resources.

Pal Singh

Chief Operating Officer

Pal Singh is the General Manager of the Air-conditioning division.

Qualified as HVACR engineer, he is a member of the American Society of Heating, Refrigeration and Air-conditioning Engineers. Pal has 28 years’ experience in large Air-conditioning and ventilation equipment from different Companies across the globe.

He is an expert in latest and advanced technology of HVACR engineering which is a unique service that aligns comfort and technology for Corporates.

Temilade Olumide

Group financial Controller

Temilola Olumide, a Fellow of the Institute of Chartered Accountants (ICAN) with over thirty (30) years’ experience across professional accounting practice, financial institutions, telecoms, oil marketing and security organizations. She joined Mandilas Group Limited as Head, Internal Audit, Risk & Compliance in January 2022 from De Tastee Fried Chicken Limited where she worked as the Finance Controller.

Temilola holds a B.Sc degree in Economics from University of Ibadan, Ibadan. She started her working career as an Articled Clerk in Coopers & Lybrand (now Price Waterhouse Coopers). Her previous work experience were at G4S Secure Solutions Nigeria Limited, Forte Oil Plc (formerly African Petroleum Plc), Motorola Nigeria Limited, United States Agency for International Development – (USAID) – Office of Transition Initiatives.

Temilola’s experience includes leading the Finance function in various business transformation and corporate restructuring initiatives that delivered significant improvement to Revenue, Net Profit and thus ROI performance.


Daisi Omidiji

Chief Commercial Officer

Daisi is a professional accountant with over 20 years’ experience across the broad spectrum of corporate finance.

He was Company Treasurer and rose to Head of Corporate Planning and Strategy at Promasidor Nigeria and later joined Timeless Holdings Ltd as the Chief Operating Officer. Prior to this, he had worked with MBC International Bank

He holds a B.Sc. degree from the Obafemi Awolowo University and an MBA from the University of Benin.

He is a Fellow of the Institute of Chartered Accountants of Nigeria and the Chartered Institute of Taxation of Nigeria.

He’s also a project manager – a PRINCE 2 Registered Practitioner and an Executive Master’s Certificate holder in Project Management from the Project Management College, UK. A member of many professional bodies both in Nigeria and UK

Ola Debayo-Doherty

Group Chief Executive Officer (C.E.O)

OLA DEBAYO-DOHERTY joined Mandilas in 2018 as the Group Chief Executive Officer charged with leading the company through its restructuring exercise. She is the first African to attain the position since the Group started operations 70 years ago.

Ola joined the Mandilas Group from IBILE Oil and Gas Corporation where she was the pioneer Managing Director/Chief Executive Officer. Prior to this role, she was at Shell Petroleum Development Company of Nigeria Limited, Shell International, United Kingdom and Arthur Anderson where she served in Finance, Management Consulting, Strategic Business Development and Project/Process Management functions at senior and management levels in and outside Nigeria.

She is a strong program and project management professional with a Master of Business Administration (M.B.A) from Canisius College (USA) and Bachelor of Science (B.S.) Accounting degree from D’Youville College (USA).

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