The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite has said the Federal Government is set to commence the manufacturing and supplying of tyres, batteries, brake pads, and other automobile components as part of efforts to boost the Nigerian automotive industry.
This was disclosed by Uzoka-Anite at the ministerial sectoral briefing to mark President Bola Tinubu’s one year in office on Tuesday in Abuja, according to The Punch.
Uzoka-Anite stated that the policy is intended to increase the presence of domestic components in the automotive parts market by 40 percent.
She said that the collaboration for the program will involve manufacturers, dealers, regulatory bodies, and other participants in the automobile ecosystem.
The Nigerian automobile industry for a long time has been dependent on imports to meet local demands for vehicles and spare parts.
Recently, the Chairman of West Africa Automative Show, Luqman Mamudu said Nigeria accounts for about 78.8 per cent of automotive components imported to West Africa.
He said that imports of automotive components and parts to the region amounted to about $6.2 billion per year, with Nigeria alone accounting for $4.2 billion.
However, speaking during the briefing, Uzoka-Aniete underlined that collaboration between manufacturers, dealers, regulatory authorities, and third parties to the automotive ecosystem will be a priority of the new framework.
This partnership approach is believed to be essential to address challenges and unlock investment potential
She said, “Steps are also being taken to unlock the potential opportunities inherent in the nation’s automotive sector. In collaboration with the National Automotive Design and Development Council – the anchor institution for the National Automotive Industry Development Plan and regulatory body for the automotive industry in Nigeria, the strategy and goal of the Ministry are to return the Nigerian Automotive industry to supply 40 per cent of its components locally comprising of glasses, tyres, batteries, brake pads, foam, and seats, exhaust, electric cables, etc.
“Towards this end, we have developed frameworks that emphasize the need for collaboration among manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem; because we believe that by working together, they can address challenges, streamline processes, and drive innovation. The automotive industry is set to sign off-take agreements amongst themselves and this is the beginning of history in Nigeria.”
In addition, she noted “With the MOUs and agreements, suppliers will be rest assured that car assemblers and manufacturers will buy their products. Assemblers will be guaranteed of their supply chain, quality, and standards and consumers will be able to buy affordable brand new cars. This is how import substitution is done. We don’t have to use our FX to buy things we can produce. We don’t have to import if we can make it.”
