Nigeria’s automotive industry faces an import dependency challenge, with $19 million spent annually on motorcycle spare parts, according to the National Automotive Design and Development Council (NADDC).
Joseph Osanipin, Director-General of NADDC, disclosed this during the council’s 2024 end-of-year media briefing in Abuja. He emphasised the urgent need to reduce reliance on imported components by fostering domestic production.
“Our analysis shows that motorcycle spare parts imports amount to nearly $19 million annually. Producing these parts locally would save foreign exchange and create opportunities for local manufacturers,” Osanipin said.
To address the issue, NADDC is partnering with international organisations, including the United Nations Industrial Development Organisation (UNIDO), to establish the Nnewi Auto Industrial Park.
“This park is a significant investment aimed at supporting small and medium-scale manufacturers who have technical expertise but lack financial capacity and modern equipment,” Osanipin noted.
The park will feature shared facilities like electricity, security, and advanced tools to improve efficiency and lower costs. It also aims to help manufacturers expand operations by providing shared resources such as conference rooms and production facilities.
In addition to this initiative, NADDC is working to revitalise local tyre and battery production to further reduce import dependency.
“We are collaborating with a local company capable of producing tyres for motorcycles and tricycles, which could meet up to 60% of domestic demand. Additionally, we’re engaging stakeholders in battery production to localise manufacturing further,” he said.
Osanipin warned that Nigeria must increase local production capacity to remain competitive under the African Continental Free Trade Area (AfCFTA). Without such efforts, the country risks becoming a dumping ground for foreign products once trade barriers across Africa are lifted.
He also highlighted NADDC’s focus on standardisation, capacity building, and collaboration with stakeholders, including manufacturers, customs, and the Ministry of Finance, to streamline processes and reduce unnecessary costs like demurrage.
The NADDC chief expressed optimism that initiatives like the Nnewi Auto Industrial Park would significantly increase locally produced auto components, cut down imports, and strengthen Nigeria’s automotive industry.
Credit: NAN (Text Excluding Headline)
