By Oluwakemi Kindness
The National Automotive Design and Development Council, NADDC says, Nigeria can unlock greater economic value from its automotive industry if government and private investors deepen collaboration and expand local manufacturing.
The council made the call in Abuja on Thursday during a capacity-building workshop for members of the Commerce and Industry Correspondents Association of Nigeria, CICAN.
Speaking on behalf of NADDC Director-General Joseph Osanipin, the council’s Director of Press and Public Relations, Susan Bisong-Taiwo, said Nigeria had a strong foundation for a competitive automotive industry, with more than 30 licensed assembly plants and an installed capacity of over 600,000 vehicles annually.
She, however, said the sector was operating at only about five per cent of its capacity, creating significant room for investment and expansion.
According to the council, stronger patronage of locally assembled vehicles, improved policies and investment in local production could help Nigeria reduce its dependence on imported vehicles and retain more value within the economy.
The NADDC called on the Federal Government to provide stable policies, effective tariff administration, trade protection and national testing standards to give investors greater confidence.
It also urged state governments to develop auto parks and industrial zones, strengthen technical training and prioritise locally assembled vehicles for official fleets.
The council said private investors could drive further growth by providing capital, partnering with original equipment manufacturers and developing local component production and after-sales networks.
It said the industry could also expand beyond vehicle assembly by increasing local content to 40 per cent through activities including stamping, welding, body building and engine and transmission integration.
The NADDC identified batteries, tyres, glass, brake pads, exhaust systems and wiring harnesses as areas with potential for local manufacturing.
It also highlighted compressed natural gas and electric vehicles as emerging opportunities, particularly for commercial fleets, two- and three-wheelers and urban transport.
The council said unlocking these opportunities would strengthen local manufacturing, create jobs, conserve foreign exchange and position Nigeria to compete more effectively in the African automotive market.
