Nigeria Spends $19 Million Annually On Motorcycle Spare Parts Imports – NADDC

Nigeria Spends $19 Million Annually On Motorcycle Spare Parts Imports – NADDC

Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC), has reported that Nigeria invests approximately $19 million each year on the importation of motorcycle spare parts…READ MORE…

Osanipin made this announcement during the NADDC’s end-of-year media briefing on Friday in Abuja. He emphasized the necessity of reducing the country’s reliance on imported parts by enhancing local manufacturing capabilities.

“Our research indicates that the annual expenditure on motorcycle spare parts imports is around $19 million, which does not include tricycles and vehicles. If we can produce these components domestically, we could save a substantial amount in foreign exchange while creating opportunities for local manufacturers,” he stated.

To tackle this issue, Osanipin mentioned that NADDC is partnering with international organizations, including the United Nations Industrial Development Organization, to develop the Nnewi Auto Industrial Park.

“This industrial park represents a major investment aimed at assisting small and medium-sized manufacturers who have the technical know-how but lack financial resources and modern equipment,” he explained.

The park will offer shared facilities such as electricity, security, and advanced tools to improve production efficiency and lower operational costs.

“With this initiative, manufacturers will be able to share resources, including conference rooms and production facilities, enhancing their capacity and reducing costs, thus facilitating scaling up,” he added.

Osanipin also highlighted ongoing efforts to revive local tire and battery production as a means to decrease import reliance.

“We are collaborating with a local company capable of producing tires for two-wheeled and three-wheeled vehicles. If production resumes, this company could meet at least 60 percent of Nigeria’s demand for such tires,” he said. “Additionally, we are engaging stakeholders in the battery production sector to further localize component manufacturing.”

The NADDC chief stressed the importance of localizing auto component production for Nigeria to remain competitive under the African Continental Free Trade Area.

“Without enhancing our domestic capacity, Nigeria risks becoming a dumping ground for foreign products once trade barriers among African nations are lifted,” he warned.

“To ensure competitiveness, NADDC is also focusing on standardization, capacity building, and fostering collaborations among stakeholders, including manufacturers, customs, and the Ministry of Finance. We aim to minimize costs such as demurrage and simplify processes like obtaining Import Duty Exemption Certificates,” he added.

Osanipin expressed confidence that the establishment of the Nnewi Auto Industrial Park and other initiatives will significantly boost the proportion of locally produced auto components, reduce import dependency, and strengthen Nigeria’s automotive industry.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp