According to Frost & Sullivan’s research titled ‘Analysis of the Automotive Lubricants Market – Nigeria and South Africa.’ the volatility of oil prices and the devaluation of the currency in Nigeria is set to provide a huge boost to the local production of automotive lubricants despite the country’s heavy reliance on imported raw materials for automotive lubricants, BizCommunity reports.
The market for lubricants is driven mainly by the demand for engine oils, but there has been a perceptible rise in end-user demand for other lubricants like transmission oil, gear oil, and coolants. The hike in demand for lubricants stems from a rising prominence of the middle class, which has boosted vehicle sales. Nigeria’s motorization rate is 8.5% per annum and is tied to the country’s gross domestic product (GDP), which has increased by 7% in the past decade.
The vehicle parc, including old and new vehicle models, presents a myriad of opportunities for automotive lubricant manufacturers. On the one hand, used cars require more frequent lubricant changes, and on the other, newer models require higher-quality lubricants. In Nigeria, about 80% of the vehicles on the road are second-hand vehicles that will require more frequent lubricant drains in the long term, contributing to the volume of demand for automotive lubricants in Nigeria.
Culled from http://energymixreport.com/nigerian-motor-lubricants-market-set-for-upswing-report/
