Nigeria loses $19m annually to motorcycle spare parts importation – NADDC

The Director-General of the National Automotive Design and Development Council (NADDC), Mr Joseph Osanipin, says Nigeria spends approximately 19 million dollars annually on the importation of motorcycle spare parts.

Osanipin said this at NADDC’s 2024 end-of-year media briefing on Friday in Abuja.

He emphasised the urgent need to reduce the country’s dependence on imported parts by bolstering local manufacturing.

“Our investigation shows that the value of motorcycle spare parts imported into the country annually is close to 19 million dollars.

“This figure excludes tricycles and vehicles. If we can produce these parts locally, we will save a significant amount in foreign exchange and create opportunities for local manufacturers,” he said.

To address the challenge, Osanipin said NADDC is collaborating with international partners, including the United Nations Industrial Development Organisation (UNIDO) to establish the Nnewi Auto Industrial Park.

“This industrial park is a gigantic investment aimed at supporting small and medium-scale manufacturers who possess technical expertise but lack the financial capacity and modern equipment,” Osanipin said.

He said the park would provide shared facilities, including electricity, security, and modern tools, to enhance production efficiency and reduce operational costs.

“With this initiative, manufacturers will share resources like conference rooms and production facilities. This approach will help increase their capacity, lower production costs, and make scaling up easier,” he added.

Osanipin also revealed ongoing efforts to revive local tyre and battery production to reduce the reliance on imports.

“We are working with a local company capable of producing tyres for two-wheelers and three-wheelers. Once revived, this company could meet at least 60 per cent of Nigeria’s demand for such tyres.

“Additionally, we are engaging stakeholders in battery production to further localise component manufacturing,” he said.

The NADDC boss emphasised that localising auto component production was crucial for Nigeria to remain competitive under the African Continental Free Trade Area (AfCFTA).

“If we fail to enhance our local capacity, Nigeria will become a dumping ground for foreign products once the trade barriers among African countries are removed.

“To ensure competitiveness, the NADDC has also been focusing on standardisation, capacity building, and fostering collaboration among stakeholders, including manufacturers, customs, and the Ministry of Finance.

“We are aligning efforts to reduce unnecessary costs, such as demurrage, and to simplify processes like obtaining Import Duty Exemption Certificates (IDECs),” he said.

Osanipin expressed optimism that the establishment of the Nnewi Auto Industrial Park and other initiatives would significantly increase the percentage of locally produced auto components, reduce import dependence, and strengthen Nigeria’s automotive industry.