NADDC urges stronger investment and collaboration to boost Nigeria’s automotive industry.
The National Automotive Design and Development Council, NADDC, says, Nigeria’s automotive assembly plants are operating at only about five per cent of their combined installed capacity,
It says the country has more than 30 licensed assembly plants with a combined capacity to produce over 600,000 vehicles annually, but weak local patronage and other challenges continue to constrain production.
The NADDC made this known in Abuja on Thursday, at a capacity-building workshop for members of the Commerce and Industry Correspondents Association of Nigeria, CICAN.
Representing the Director-General of the council, Joseph Osanipin, the Director of Press and Public Relations, Susan Bisong-Taiwo, identified the influx of imported used vehicles, foreign exchange pressures and high production as well as logistics costs as major challenges facing the industry.
She noted that Nigeria must deepen investment and collaboration between the public and private sectors to build a stronger automotive industry and reduce dependence on imported vehicles.
The council called on the Federal Government to maintain consistent policies, improve tariff administration, protect local manufacturers and establish effective national testing standards.
It also urges state governments to develop auto parks and industrial zones, strengthen technical training and prioritise locally assembled vehicles in government fleet procurement.
NADDC said private-sector investors should provide more capital, partner with original equipment manufacturers, promote technology transfer, develop local components and establish nationwide after-sales networks.
It said Nigeria should move beyond basic vehicle assembly by developing deeper manufacturing capacity, including stamping, welding, body building and engine and transmission integration, with a target of achieving 40 per cent local content.
The council identified batteries, tyres, glass, brake pads, exhaust systems and wiring harnesses as areas with potential for local component 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 NADDC said developing the automotive value chain would create jobs, conserve foreign exchange and strengthen Nigeria’s industrial base.
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