The Director-General of the National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin, revealed that Nigeria spends approximately $19 million annually on importing motorcycle spare parts, excluding tricycles and vehicles.
Speaking at NADDC’s 2024 end-of-year media briefing in Abuja, Osanipin emphasized the need to reduce the country’s dependency on imports by fostering local manufacturing capabilities.
“Our investigation shows that the value of motorcycle spare parts imported into the country annually is close to $19 million.
Producing these parts locally would save significant foreign exchange and create opportunities for local manufacturers,” he stated.
Osanipin announced NADDC’s partnership with international organizations, including the United Nations Industrial Development Organisation (UNIDO), to establish the Nnewi Auto Industrial Park.
“This industrial park is a major investment designed to support small and medium-scale manufacturers with technical expertise but limited financial capacity and access to modern equipment,” Osanipin explained.
The park will offer shared facilities, including electricity, security, and modern production tools, to enhance efficiency and reduce costs for local manufacturers.
“With shared resources like conference rooms and production facilities, manufacturers can increase capacity, lower production costs, and scale operations more effectively,” he added.
Osanipin also highlighted efforts to revive local production of tyres and batteries, crucial for the nation’s automotive sector.
“We are collaborating with a local company to produce tyres for two- and three-wheelers, which could meet at least 60% of Nigeria’s demand.
Additionally, we are engaging stakeholders in battery production to localize component manufacturing further,” he said.
Osanipin underscored the importance of localizing automotive component production to remain competitive within the African Continental Free Trade Area (AfCFTA).
“If we fail to boost local capacity, Nigeria risks becoming a dumping ground for foreign products as trade barriers among African nations are removed,” he cautioned.
To address these challenges, NADDC has been focusing on standardization, capacity building, and collaboration with stakeholders, including manufacturers, customs, and the Ministry of Finance.
“We are aligning efforts to reduce unnecessary costs such as demurrage and streamline processes like obtaining Import Duty Exemption Certificates,” Osanipin said.
The NADDC boss expressed confidence that initiatives such as the Nnewi Auto Industrial Park would significantly increase local production of automotive components, reduce import reliance, and bolster Nigeria’s automotive industry.
“These measures will not only save foreign exchange but also create jobs and position Nigeria as a competitive player in the African and global automotive markets,” he concluded.
(NAN)
