Director General of NADDC, Joseph Osanipin, addressing newsmen during the media parley in Abuja on Thursday.
By Felix Khanoba
The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, has disclosed that Nigeria spends nearly $19 million each year on the importation of motorcycle spare parts.
Speaking during a media briefing in Abuja on Thursday, Osanipin emphasized the importance of developing the local auto industry by focusing on the production of auto components.
“When I came in, I focused on this. We need to focus attention on the spare parts we are using,” he stated. “We buy vehicles once, but we maintain them over a very long period of time. My vision is to identify those ones we have comparative advantage to manufacture them in Nigeria.”
According to Osanipin, investigations by the Council revealed the significant financial impact of importing motorcycle spare parts, excluding tricycles and vehicles.
“The value of motorcycle spare parts imported into the country annually is close to $19 million,” he said. “If we can produce these parts locally, we will save a lot of amount in foreign exchange and create opportunities for local manufacturers.”
Osanipin noted that NADDC is committed to introducing comprehensive policies to support local production and investments in the automotive sector. One such initiative involves a partnership with the United Nations Industrial Development Organisation (UNIDO) to establish the Nnewi Auto Industrial Park. This project is designed to support small and medium-scale manufacturers.
“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,” he explained. The park will feature shared facilities such as electricity, security, and advanced tools to enhance production efficiency while reducing costs.
“With this initiative, manufacturers will share resources like conference rooms and production facilities. This approach will help increase their capacity to produce, reduce their cost of production, and make them to scale up their production easier,” he added.
Osanipin also highlighted efforts to revive local tyre manufacturing and expand battery production to further reduce dependency 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 percent of Nigeria’s demand for such tyres,” he said. “Additionally, we are engaging stakeholders in battery production to further localise component manufacturing.”
The NADDC DG expressed confidence that these initiatives would prepare Nigeria to compete in the African Continental Free Trade Area (AfCFTA), set to commence in 2025.
“If we fail to take all these decisions now, it means Nigeria will be bombarded with foreign products once the trade barriers among African countries are removed,” Osanipin warned. “Let’s ensure that we are competitive; our local manufacturers will be able to stand against these foreign products.”
He further stressed the need for collaboration among stakeholders, including manufacturers, Customs, the Ministry of Finance, the Bank of Industry (BoI), and UNIDO, to standardize products and build capacity within the sector.
“For us to make progress in this sector, we must work together. We must be on the same page. The manufacturers must understand their own responsibility, and BoI, who finances most of our products, must know the direction we are going,” the NADDC boss added.
