By Victoria Ojeme

The Federal Government has announced plans to establish the Nnewi Auto Industrial Park to reduce the country’s $19 million annual expenditure on imported motorcycle spare parts and strengthening domestic manufacturing capabilities.

Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, revealed these figures during the council’s end-of-year media briefing in Abuja on Friday, noting the significant drain on foreign exchange.

“Our investigation shows that the value of motorcycle spare parts imported into the country annually is close to $19 million. This figure excludes tricycles and vehicles,” Osanipin said. “The situation demands immediate attention, as these imports represent opportunities we’re losing for local manufacturing and job creation.”

He said that the NADDC, in collaboration with the United Nations Industrial Development Organisation (UNIDO), is spearheading the development of the industrial park to address these challenges.

“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,” Osanipin explained.

Detailing the facility’s operational model, he added: “With this initiative, manufacturers will share resources like conference rooms and production facilities. This approach will help increase their capacity, lower production costs, and make scaling up easier. We provide the electricity, security, and they are going to have shared facilities.”

The council is simultaneously pursuing initiatives to revitalize local tyre and battery production. “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,” Osanipin revealed. “Additionally, we are engaging stakeholders in battery production to further localize component manufacturing.”

Addressing the broader implications for Nigeria’s automotive sector, Osanipin stressed the project’s significance in the context of regional trade: “The African Continental Free Trade Area presents both opportunities and challenges. Our ability to produce components locally will determine our competitiveness in this market.”

The NADDC is also expanding its scope to include training programme for emerging automotive technologies. “We’ve developed comprehensive curricula for Compressed Natural Gas technologies, covering everything from conversion to maintenance and installation,” Osanipin noted. “The curriculum has been accepted and certified, opening new opportunities along the automotive value chain.”

“The youth can participate in various aspects of the industry,” he elaborated. “From supplying conversion kits to becoming certified technicians or participating in the gas section. The opportunities are diverse and significant.”

The Director-General expressed confidence that the combination of infrastructure development, training programs, and strategic partnerships would transform Nigeria’s automotive component manufacturing landscape.

“By providing these essential facilities and support systems, we’re not just reducing import dependence – we’re building a sustainable foundation for Nigeria’s automotive future,” he added.