Mr. Oluwemimo Joseph Osanipin, director-general of the National Automotive Design and Development Council (NADDC), highlighted the issue of excessive vehicle importation within the automotive industry. He emphasised that the country’s development is hindered by this dependency on imports. In 2023, ₦1.47 trillion was invested in importing passenger cars, marking a significant 224.67% surge from the previous year, as revealed by the National Bureau of Statistics (NBS). He emphasised the importance of the automotive sector in boosting the economy, noting that many nations have thrived by prioritising its growth.
Osanipin addressed the audience in Lagos during the inaugural Nigeria Auto Industry Summit, a collaborative event between the Nigeria Auto Journalists Association and the NADDC. The summit aimed to explore the potential of the auto industry in boosting Nigeria’s economy. He observed the growth of the automobile industry in different countries around the globe, highlighting the exponential progress seen in Morocco. In 2013, the country launched its National Automotive Industry Development Plan (NAIDP) and exported 23,000 vehicles. Fast forward 10 years, and Morocco now exports about 460,000 units of vehicles.
Without necessary changes, the industry could face inevitable challenges.
He pointed out that Nigeria began the auto policy at a similar time, emphasising that the country has only been importing vehicles without exporting any. He stressed the need to reverse this trend, noting that Nigeria should have progressed from Semi-Knocked Down (SKD) to Fully Built Units (FBUs) or Complete Knocked Down but instead has regressed to what he referred to as Dismembered Knocked Down (DKD). Without implementing necessary changes, he cautioned that the industry could face inevitable demise if it continues on its current trajectory.
His message emphasised the need to shift towards a future in which Nigeria is not solely a buyer but also a creator of top-notch vehicles. Essentially, he urged for a balance between consumption and production aligned with the ‘Renewed Hope Agenda’ set forth by the President. He highlighted that countries like South Africa and Morocco have successfully boosted their economies by focusing on the growth of the automotive industry. This is a positive sign for Nigeria, which already has several local assembly plants in operation and a government that is highly committed to the industry’s success.
Stakeholders’ collaboration can transition Nigeria to a major producer.
Also, he expressed frustration about the impact of importing products on the economy, emphasising the need for collaboration among stakeholders to transition Nigeria from a consumer to a major producer of auto goods worldwide. He urged for a focus on increasing local content in products such as tricycles to boost job creation and economic growth. He emphasised the importance of utilising local products before looking elsewhere. The NADDC is committed to assisting in the growth of a strong industry after witnessing the obstacles within the sector.
Their focus is on advancing towards their goal through various projects, with one key initiative being the Nigerian automotive industrial development plan. This comprehensive plan serves as a guide for the advancement of the industry, setting out tactics and rewards to entice investors, promote local production, and boost employment opportunities. Collaboration with various partners is also underway to establish training schemes that will empower Nigerians with the necessary expertise to thrive in the automotive sector, he added.
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Former acting director-general of the NADDC, Mr. Luqman Mamudu, urged prompt approval of the updated NAIDP Act from 2024 to 2034 in order to boost investor trust. He described how the growth of the sector, driven by both local and foreign companies, leads to a surge in job opportunities and Tax income for the government. These businesses make money from their activities and give back to the community through various forms of taxation. The growth of Manufacturing plants and associated facilities generated employment opportunities in different fields, driving economic progress and wealth. In 2017, the NAIDP led to the hiring of more than 3,000 individuals within the industry.