The stakeholders in the Nigerian auto industry have been optimistic as the federal government steps up efforts to encourage local auto parts production a move that will cut dependence on imports, save foreign exchange, and create jobs.
The fresh push, led by the National Automotive Design and Development Council (NADDC), is part of Nigeria’s overall strategy to achieve backward integration in the auto sector. The council invited assemblers, component manufacturers, and investors to raise local production of key automobile parts such as batteries, brake pads, glass, filters, and tyres.
NADDC DG, Joseph Osanipin, said that localisation of component production is key to economic sustainability. “Every imported component is a lost job and foreign exchange lost. By producing locally, we can retain value, create jobs, and build resistance to currency volatility,” he said.
Nigeria currently spends between $7 and $8 billion annually importing vehicles and parts, according to data from the National Bureau of Statistics (NBS). Experts estimate that local production can cut the import bill by up to 30 per cent and create thousands of jobs in manufacturing, logistics, and raw material supply.
Already, some stakeholders are scaling up operations. Infinity Tyres, ASPIRA, and Ibeto Batteries are boosting production, and manufacturers in Nnewi and Ibadan continue to produce brake pads and filters.
Austin Akpochafor, a car importer, commended the Tinubu administration’s action, saying, “Even reverting to the 1970s and 1980s production levels, when Nigeria assembled vehicles and locally produced components, would be a great boost to the economy.”
A financial economist at Auchi Polytechnic, Zakari Mohammed, also said that the project aligns with the government’s aspiration to diversify the economy and also achieve a $1 trillion GDP by 2030.
However, stakeholders caution that continued policy support and infrastructure development are crucial for success. Professor Oscar Odiboh emphasized the need for consistent power, reliable logistics, and affordable finance. “You cannot have a sustainable auto-parts ecosystem without policy stability and access to low-interest funding,” he stated, advocating a reconstitution of the Automotive Industry Development Fund for the benefit of component manufacturers.
Industry analysts believe that with good policy and government support, Nigeria can become a hub for manufacturing of automobile components in West and Central Africa.
