He Left Mercedes-Benz to Prove Africa Can Build Cars | Tobi Ajayi (Nord Automobiles)

Nigeria has over 220 million people, yet imports nearly everything—from cars and furniture to industrial machinery. Why? In this episode of the Frankly Business Podcast, Frank Fagbo sits down with Oluwatobi Ajayi, Founder and CEO of Nord Automobiles, to unpack one of the biggest questions facing Africa’s largest economy. They discuss: • Why Tesla also started by assembling vehicles • Why manufacturing is so difficult in Nigeria • Why high interest rates kill industrial growth • The truth about “Made in Nigeria” • Mercedes-Benz lessons that changed everything • EVs vs petrol vehicles • Why productivity matters more than corruption • Building the Nord Innovation Hub inside the University of Lagos (UNILAG) • Why Nord is expanding into Europe • Car financing in Nigeria • Entrepreneurship, investors and building a global African brand If you’ve ever wondered why Nigeria imports so much instead of manufacturing locally, how Tesla started, whether electric vehicles can succeed in Nigeria, or what it really takes to build a Nigerian car company, this conversation answers those questions. Whether you’re an entrepreneur, policymaker, investor, engineer or simply curious about Africa’s future, this episode offers an insider’s perspective on building globally competitive businesses from Nigeria. Which do you think is Nigeria’s biggest obstacle to manufacturing: leadership, finance, infrastructure, or something else? Let us know in the comments. Subscribe for more conversations on business, technology, finance and the future of Africa. ⸻ 00:00 Trailer 02:56 Why Nigeria Struggles to Build Cars 07:26 Why Car Manufacturers Need 20,000 Units Before Designing Parts 08:13 How Tesla Really Started 09:21 Why Nord Sources Components from China 10:07 Why Manufacturing Doesn’t Scale in Nigeria 11:47 Is Nigeria Really a Manufacturing Nation? 13:36 Supply Chains: China vs Local Production 14:52 Why 30% Interest Rates Kill Manufacturing 15:55 Why Even 10% Loans Are Too Expensive 17:06 Nigeria’s Leadership Challenge 18:46 Why Builders Think Differently from Traders 19:07 What Dangote and BUA Understand About Manufacturing 20:28 Why Africa’s Largest Country Must Build Things 21:11 Why Investors Prefer Real Estate Over Factories 22:19 How Government Can Boost Manufacturing 22:53 Is Importing Responsible for High Dollar Rates? 24:06 Why Nigeria Still Imports Furniture 24:46 What Nigeria Should Actually Be Importing 26:04 The “Better Pass My Neighbour” Mindset 26:21 Nigerian Cars vs Foreign Used Cars 29:40 Are Brand-New Cars Worth Buying? 32:57 Should Nigeria Increase Tariffs on Imported Cars? 40:10 Why Public Companies Buy Nord Vehicles 43:41 Productivity vs Corruption: What’s Nigeria’s Bigger Problem? 44:00 Raising Money From Politicians 45:12 Why Political Connections Beat Productivity 48:25 The Race to Own Nigeria’s Auto Industry 50:17 Why Nord Competes With China Instead of Europe 51:32 EVs vs Petrol Cars: Which Makes More Sense? 55:47 How Nord Maintains Electric Vehicles 1:06:56 Why Nigerians Buy Local More Than Other Africans 1:08:05 Why Nord Built an Innovation Centre at UNILAG 1:12:50 Lessons From Mercedes-Benz 1:16:05 Leaving Mercedes to Build Nord 1:16:38 Proving Africans Can Build Great Cars 1:17:39 Why National Pride Matters in Manufacturing 1:19:42 Why Nord Created Its Own Car Finance Company 1:21:46 Nord’s Expansion Into Europe 1:24:13 Buying a Car in Under 48 Hours 1:27:29 Nigeria’s Skilled Labour Gap 1:29:32 Why Employers Can’t Find Workers 1:31:42 Nigeria’s Productivity Crisis 1:33:53 The Hard Truth About Entrepreneurship 1:38:46 How Nord Raised Investors to Build a Car Company Key Words: Nord Motors, Nord Automobiles, Made in Nigeria cars, Nigerian car manufacturer, African manufacturing, Manufacturing in Africa, Tesla, Tesla history, Mercedes-Benz, Electric vehicles, EV Nigeria, Car manufacturing, Industrialization, Import substitution, Nigerian economy, FX crisis, Entrepreneurship, Business podcast, Frankly Business, Dangote, BUA, University of Lagos, Car financing, Productivity, Industrial policy, Africa business