Germany’s Foreign Direct Investment in the Nigerian Automobile Sector: A Lagos-Based Study

This study examines the pattern and impact of German foreign direct investment (FDI) in the nascent Nigerian automobile assembly sector, with case studies drawn from Lagos and Ogun States in South-West Nigeria. Germany remains one of Europe's leading investors in emerging markets, and its automotive brands have maintained a consistent market presence in Nigeria. However, the depth of German industrial investment in local automobile manufacturing, as opposed to import distribution, remains a contested area in trade literature. This descriptive research employs documentary analysis and structured interviews with industry stakeholders, including representatives from the German-Nigerian Chamber of Commerce, vehicle assemblers, and logistics firms operating in the Lekki Free Trade Zone and the Sagamu industrial corridor. Trade data from Germany Trade and Invest (GTAI) and the Nigerian Investment Promotion Commission (NIPC) between 2019 and 2024 are analysed to trace investment trends. The study assesses the degree to which German investment has stimulated local value chain development, skills transfer, and employment generation in the South-West automobile sector. The research also examines policy barriers, including import duty structures and infrastructure deficits, that constrain deeper German industrial commitment. Findings will enrich undergraduate-level understanding of bilateral European-Nigerian economic relations and inform policy recommendations for investment facilitation. Keywords: Germany, FDI, automobile sector, Lagos, South-West Nigeria.