Nigerian Automotive Components Manufacturers Seek FG’s Support

In a pivotal dialogue on automotive components manufacturing in Abuja organised by the National Automotive Design and Development Council (NADDC), stakeholders in Nigeria’s automotive industry have urged for a collaboration between component manufacturers and the federal government to revitalise vehicle component manufacturing in the country.

They spoke in Abuja, yesterday at a dialogue on Automotive Component Manufacturing in Nigeria.

During the deliberations, Mr. Anslem Ilekuba, representing the Automotive Local Component Manufacturers Association of Nigeria (ALCMAN), lamented the decline in local component production from 40 per cent in the 1980s to less than 10 per cent presently,

He emphasised that Nigeria currently supplies less than 10 per cent of its local components, falling short of the AfCFTA’s 40 per cent local content requirement.

He outlined key areas for collaboration, including resuscitating manufacturing, establishing links between local suppliers and vehicle manufacturers, identifying raw material sources, creating funding mechanisms, and collaborating on industrial infrastructure provision.

Dr. Innocent Chukwuma of Innoson Motors, representing the tire and tube component, voiced the frustrations shared by manufacturers across Nigeria. Chukwuma recounted his experience establishing a tire-manufacturing factory in Enugu, emphasising the significant delays encountered until receiving recent approval from the present administration.

He passionately asserted that if allowed to operate, the factory would not only create jobs but also ensure tire production accessibility for all Nigerians.

While advocating for increased government support to the sector, Chukwuma urged stakeholders to collaborate synergistically to position Nigeria as a leading hub for automobile production in the foreseeable future.

“I believe this government has the interest of Nigeria’s future at heart, and I must commend their efforts.

“I urge us all to join hands to ensure the idea behind this forum is achieved,’’ Chukwuma said.

Mr. Chika Okafor of Chikason Group echoed similar sentiments. He identified inadequate power supply, insecurity, and inconsistent government policies as major challenges affecting the automotive plastic and rubber component sector.

Despite these challenges, he acknowledged the commitment of President Bola Tinubu’s administration.

Responding, the director-general NADDC, Joseph Osanipin, expressed the commitment of the federal government to look into all the plights of the component manufacturers.

He explained that the strategic plan for the agency is to focus more on component parts to aid the development of the automotive industry and push for the transition of the nation’s vehicle assemblers from SKD to CKD auto manufacturers.

Osanipin said Nigeria is blessed with a variety of natural resources that are basic raw materials for production of components parts.

Drawing attention to the remarkable strides made by our counterpart manufacturers for example in South Africa, Osanipin said the value of components export in 2022 was $4.312 billion, direct employment 84,000 and indirect employment 560,000.

But in Nigeria, he said, vehicle ownership is 6 per cent of the general population as of 2018 (which is approximately 12million), in South Africa it is about 17.4 per cent.

While assuring that the gap in components manufacturing in the country would be closed as the country aims to achieve mileage in auto manufacturing in Africa, Osanipin expressed the unwavering commitment of the federal government to address the challenges faced by the component manufacturers.

He assured stakeholders that all issues discussed would be carefully considered and action plans formulated for collaborative implementation.