By Godfrey AKON
The National Automotive Design and Development Council, NADDC, has announced plans to commence disbursement of a N20 billion automobile consumer credit fund in January 2025.
The initiative aims to enable Nigerians to purchase locally-assembled vehicles, a key step in promoting the country’s automotive sector.
Speaking at an end-of-year media briefing with the Commerce and Industry Correspondents Association of Nigeria, CICAN, NADDC Director-General, Mr. Joseph Osanipin, also disclosed the council’s efforts to establish an Auto Industrial Park in Nnewi, Anambra State.
Osanipin said the park will support the production of automobile components and strengthen local manufacturing capacity.
According to him, the industrial park would offer shared facilities, such as electricity, security, and advanced machinery, to enhance their operations.
“This initiative will bring manufacturers together in a centralized location where they can share resources like equipment and facilities. It will reduce production costs and foster innovation,” he said.
The NADDC boss also revealed that Nigeria spends approximately $19 million annually on importing motorcycle spare parts.
He added that by localizing production, the council aims to save foreign exchange and create opportunities for domestic manufacturers.
“Our investigation shows that motorcycle spare parts alone cost the country $19 million annually. If we can produce these locally, we will save significantly and boost the local economy,” he said.
Osanipin added that the council is working with international partners, including the United Nations Industrial Development Organization, UNIDO, to facilitate the development of the Nnewi park and other initiatives.
He said one of NADDC’s achievements, was to develop a curriculum for training technicians in Compressed Natural Gas, CNG, technology.
He added that the council has trained youths across the country on various aspects of the CNG value chain, including conversion, installation, and maintenance.
“CNG technology offers immense value addition. We are empowering youths to participate in the sector, whether as technicians or suppliers of essential components,” he said.
On local production of tyres, Osanipin disclosed that NADDC is collaborating with local manufacturers to revive tyre and battery production.
He said a local company with the capacity to produce tyres for two- and three-wheelers is being supported to meet up to 60 per cent of the country’s demand.
He disclosed that the council is also engaging stakeholders to promote local battery manufacturing, further reducing reliance on imports.
While disclosing that NADDC is prioritizing the localization of auto component production to ensure Nigeria’s competitiveness under the African Continental Free Trade Area, AfCFTA, Osanipin warned that failure to enhance local capacity could turn Nigeria into a dumping ground for foreign products once trade barriers within Africa are removed.
“We are aligning efforts to standardize production, build capacity, and foster collaboration among stakeholders to reduce unnecessary costs and improve efficiency,” he said.
