Nigeria spends approximately $19 million annually on the importation of motorcycle spare parts, according to Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC).
Speaking at NADDC’s 2024 end-of-year media briefing in Abuja, Osanipin stressed the urgent need to reduce Nigeria’s reliance on imported auto parts and increase local manufacturing capabilities.
“Our investigation shows that the value of motorcycle spare parts imported into the country annually is close to 19 million dollars,” Osanipin explained. He noted that this figure excludes the importation of tricycles and vehicles, which also contribute to foreign exchange expenditure. He called for a strategic effort to produce these parts locally, which would save foreign exchange and boost local manufacturing opportunities.
To address this challenge, Osanipin revealed that NADDC is partnering with international organisations, such as the United Nations Industrial Development Organisation (UNIDO), to develop the Nnewi Auto Industrial Park. This park is designed to support small and medium-scale manufacturers with technical expertise but limited financial capacity and equipment.
“The industrial park will provide shared facilities like electricity, security, and modern tools, which will help increase production efficiency and lower operational costs,” he added. By pooling resources such as production facilities and conference rooms, manufacturers will be able to scale up more easily and reduce production costs.
In addition, Osanipin highlighted ongoing efforts to revive local tyre and battery production, further reducing reliance on imports. “We are working with a local company to produce tyres for two-wheelers and three-wheelers. This initiative could meet at least 60% of Nigeria’s demand for such tyres,” he said. NADDC is also collaborating with stakeholders in the battery production sector to localise component manufacturing.
Osanipin emphasised that localising auto component production is vital for Nigeria’s competitiveness under the African Continental Free Trade Area (AfCFTA). He warned that without increasing local manufacturing capacity, Nigeria could become a dumping ground for foreign products once trade barriers within Africa are removed.
To support this, NADDC has focused on standardisation, capacity building, and collaboration with various stakeholders, including manufacturers, customs, and the Ministry of Finance. Efforts are also being made to reduce unnecessary costs such as demurrage and simplify processes like obtaining Import Duty Exemption Certificates.
Osanipin expressed optimism that the Nnewi Auto Industrial Park and other initiatives would significantly increase the percentage of locally produced auto components, reduce dependence on imports, and strengthen Nigeria’s automotive industry.
