Federal Gov’t To Harness $900m Auto Parts Industry …C0NTINUE READING HERE >>>
With the implementation of strategic policies and purposeful initiatives, the auto spare parts sector is positioned to emerge as a fundamental driver of the country’s economic growth, generating an estimated annual revenue ranging from $500 million to $900 million, it was learnt.
The automotive industry possesses significant potential to contribute to the nation’s economic development. Local manufacturing to this figure is minimal or nonexistent, with the majority of parts being imported from overseas.
In the continent, Tunisia ranks second in Africa in the export of auto parts and components after Morocco, with about 280 auto industry firms in the North African country now providing 90,000 jobs. It plans to double its auto industry exports to $4.7 billion by 2027 and to create 150,000 new jobs. Authorities believe that manufacturing can happen even without automotive assembling in Nigeria even now.
For instance, Tunisia is thriving in this sector as they manufacture auto parts which indicates that Nigeria can thrive too with the abundance of raw materials in the country.
Recall that there is enough leather, textiles, rubber, iron, steel, aluminium, plastic, elastomers, and additionally, the country has the necessary materials for electric vehicle production, including cobalt, lithium, manganese, bauxite, and graphite. These resources are readily available in Nigeria, making the country an ideal location for automotive production.
The CEO of BKG Exhibitions, Ifeanyichukwu Agwu harped on the need to commence local manufacturing of auto parts, saying, if the country wants to be an auto hub in Africa, it can be.
Speaking on the development of the auto spare parts market, he said, to become a prominent auto hub in Africa, there is a pressing need to commence the local manufacturing of auto parts.
“Let us initiate this with auto parts, as it will have a multifaceted positive impact. The production of spare parts is less complex compared to assembling entire vehicles. Each vehicle comprises over 5,000 parts, which implies the establishment of 5,000 factories and the creation of employment opportunities for our populace. In India alone, there are approximately 11,000 auto parts companies, highlighting the extent of labour and technology involved,” he suggested.
The president of the Ladipo Central Executive Committee of the Auto Dealers Association, Mr Africanus Ogudoro, concurred with the notion that local production of auto parts would reduce dependence on imports, save foreign exchange, and bolster the growth of the domestic automotive industry, believing this initiative would not only create employment opportunities for Nigerians but also foster a more self-reliant and competitive automotive sector.
Recently, a board member of the Nigeria Automobile Manufacturers Association (NAMA), Benedeth Ejindu said, the global automotive sector plays a catalytic role in driving economic growth, and as such, the necessary resources are readily available in Nigeria.
“There is abundant leather, textiles, rubber, iron, steel, aluminium, plastic, elastomers, and more. Additionally, we have the necessary materials for electric vehicle production, including cobalt, lithium, manganese, bauxite, and graphite. These resources are readily available in Nigeria, making us an ideal location for automotive production,” Ejindu said.
To capitalise on the potential of the spare parts industry, the director general of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, said, we are putting premium attention on part within the country.
We’ve identified some parts that can easily be manufactured in Nigeria and we are discussing with stakeholders in that regard.
We have been able to bring together the parts manufacturers, assemblers, and NADDC about an all-signing Memorandum of Understanding (MoU).
Osanipin also said, the council is not resting on that alone, as they have struck partnerships to establish Nnewi Auto Industrial Park, Anambra state, funded by the African Export-Import Bank (Afreximbank).
The park aimed to provide a centralised location for the manufacturing and assembly of automotive components, vehicles, and related products.
“The industrial part there is a park that we want to bring in all the part manufacturers to the same facility so that there are going to be co-location, there are going to be sharing facilities which will make product price drop, and then improve price competitiveness, and bring about products standardisation making sure that the product coming out of this park meets international standards,” he stressed.
In addition to that, he noted that, “we are working on completing the component test centre in Enugu. By the time this is completed, any product coming out of the Industrial Park will be taken to the centre to test and to make sure that the product meets international standards after that, we will be able to produce en masse, a significant step towards revitalising Nigeria’s automotive industry.”
>