German automaker Volkswagen has announced plans to establish an e-tractor manufacturing plant in Nigeria. This initiative aims to enhance agricultural mechanization in the country and signifies Volkswagen’s renewed confidence in Nigeria’s economy.

Nigeria’s Minister of Foreign Affairs, Hon. Yusuf Maitama Tuggar, revealed the development following discussions with Germany's Minister of State, Mrs. Katja Keul, during the G20 Foreign Ministers' Meeting. The project is supported by the German government as part of broader economic and industrial cooperation between Nigeria and Germany.

Volkswagen’s entry into Nigeria’s agricultural sector is expected to boost mechanized farming and improve productivity. This move comes amid challenges in Nigeria’s automotive industry, where global manufacturers have been hesitant due to delays in implementing the Auto Industry Development Plan.

Volkswagen has been expanding its presence across Africa, recently creating a dedicated "Sub-Saharan" region to oversee operations. The company already has manufacturing and assembly facilities in South Africa, Kenya, Rwanda, and Ghana. A similar e-tractor initiative, the GenFarm Project, is already underway in Rwanda, providing sustainable mechanized farming solutions.

Volkswagen’s return to Nigeria marks a significant milestone, reinforcing the country's potential as a key player in Africa’s growing automotive and agricultural sectors.