In a bid to revitalize the automotive industry and boost the nation’s economy, the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, has unveiled plans to enhance local spare parts production by creating opportunities for domestic manufacturers.
Speaking at a press conference in Abuja on Thursday, Osanipin highlighted that producing spare parts locally would save Nigeria significant foreign exchange, which is currently spent on importing spare parts—an expenditure nearing $19 million annually.
He said, “When I came in, I focused on this. We need to focus attention on the spare parts we are using. We buy vehicles once, but we maintain them over a very long period of time. My vision is to identify those areas where we have a comparative advantage and manufacture them in Nigeria.
“The value of motorcycle spare parts imported into the country annually is close to $19 million. If we can produce these parts locally, we will save a significant amount in foreign exchange and create opportunities for local manufacturers.”
Osanipin further explained that the initiative would provide small and medium-scale manufacturers—who often lack modern equipment and financial resources—access to production facilities. This would lower production costs and streamline manufacturing processes, making local production more viable.
He also called on the Bank of Industry (BOI) and other stakeholders to collaborate with the federal government to position Nigeria’s automotive industry for global competition.
“This industrial park is a massive investment aimed at supporting small and medium-scale manufacturers who have technical expertise but lack financial capacity and modern equipment. Manufacturers will share resources like conference rooms and production facilities. This approach will increase their production capacity, reduce costs, and enable them to scale up their operations more easily,” he explained.
Osanipin highlighted ongoing partnerships with a local company capable of producing tyres for two-wheelers and three-wheelers. Once operational, the company could meet at least 60 percent of Nigeria’s demand for such tyres.
He also revealed efforts to engage stakeholders in battery production as part of the broader strategy to localize component manufacturing.
“If we fail to take these steps now, Nigeria risks being overwhelmed by foreign products once trade barriers among African countries are removed. Let’s ensure we are competitive so our local manufacturers can stand against these foreign products,” he emphasized.
Osanipin concluded by stressing the importance of collaboration across all stakeholders, stating, “For us to make progress in this sector, we must work together. Manufacturers must understand their responsibilities, and the Bank of Industry, which finances most of our products, must align with our direction.”