Market News

Only six per cent Nigerians owned vehicles as at 2018, Director-General of National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, has said.

He called for efforts to develop the industry to create jobs and boost the economy.

”In Nigetia, vehicle ownership is six percent of the population at 2018, approximately 12 million, while South Africa is 17.4 per cent’’, he said.

“To achieve this and more, we need to harness talents and resources to drive growth and development of the sector.”

The director-general spoke at the meeting between his agency and automotive component manufacturers at Bank of Industry in Abuja.

Minister of Trade, Industry and Investment, Doris Nkiruka Anite, reiterated Federal Government’s commitment to resuscitating automotive components manufacturing sector.

The miister, with her Permanent Secretary,  Nura Rimi, said a robust industry has implications for growth, jobs and technological advancement.

Present were ALCMAN team, led by Anslem Ilekuba, Chicason Group, led by Chika Okafor, and General Tyre and Tube Company, Enugu, led by Innoocent Chukwuma.

Noting Nigeria is blessed with natural resources, including raw materials for production of component parts, Osanipin said “NADDC’s plan is to focus more on these to aid development of the industry and push for transition of assemblers from SKD to CKD auto-manufacturers.”

Urging Nigeria to emulate South Africa, he said: “Our counterparts in South Africa,  whose value of component export in 2022 was $4.312 million, generated a direct employment of 84.000 and indirect employment of 560,000.”

He thanked the component manufacturers for their dedication and contributions, stressing their ingenuity and expertise are the cornerstone on which the country’s automotive aspiration is built.

He called for a vibrant and thriving automotive ecosystem, charging them to remain steadfast in the collective commitment to excellence, innovation and inclusivity.

Osanipin said:”Together,we have the power to reshape the future of mobility in Nigeria and chart a course towards prosperity for generations to come.”

The minister said Nigeria should collectively devise the most effective strategies to breathe new life into vehicle components manufacturing within its borders.

She said it involves, not only identifying the challenges, but also leveraging our strengths and resources to overcome them.

Anite said:”We must establish strong linkages between suppliers and vehicle manufacturers. Collaboration and cooperation between these stakeholders are essential for ensuring a seamless flow of components and materials, ultimately leading to increased efficiency and competitiveness in the market.”

She added: “We need to identify reliable sources of raw materials and suppliers for our component manufacturers. This entails exploring both domestic and international avenues to secure a steady supply chain that can meet the demands of our growing industry.

“We must address the critical issue of funding. Access to finance is often cited as a major hurdle for businesses in this sector. Therefore, we must explore innovative financing mechanisms, including public-private partnerships and incentives, to support the growth and expansion of automotive component manufacturing enterprises.

“We must prioritize the development of industrial infrastructure tailored to the specific needs of our component manufacturers. This includes investing in technology, training, and facilities that can enhance productivity, quality, and safety standards across the board.

“As we embark on this journey, let us remember that our ultimate goal is not only to revitalize the automotive components manufacturing sector but also to position Nigeria as a leading player in the global automotive industry.”