The Nigeria Auto Manufacturers Association (NAMA) has called for the Federal Government to create a conducive environment for the establishment and expansion of Completely Knocked Down and Semi Knocked Down assembly plants.
According to NAMA, the move is vital to increasing job opportunities and supporting economic growth.
The appeal was made at the maiden edition of the Nigeria Auto Industry Summit in Lagos, organized by the Nigeria Auto Journalists Association in conjunction with the National Automotive Design and Development Council (NADDC).
Mr. Ben Ejindu, a Council Member of NAMA, highlighted the significant potential of Nigeria’s automotive industry in his presentation at the summit.
He emphasized that the availability of a large and trainable workforce would support the industry’s growth, laying a robust foundation for economic progress.
Ejindu pointed out that the automotive sector could play a crucial role in employment generation, contributing to the country’s Gross Domestic Product (GDP), fostering economic linkages, supporting Small and Medium Enterprises (SMEs), and driving technological innovation and industrialization.
He noted that the industry currently contributes $210 million, or 0.04 per cent, to Nigeria’s GDP, indicating significant room for growth.
“The auto industry creates numerous opportunities for SMEs growth through the production of automotive components and parts,” Ejindu said.
He emphasized the need for strategic investments in skills development and technology innovation to enhance the sector’s growth.
He also stressed the importance of training programs and partnerships with educational institutions to equip the workforce with the necessary skills, and the adoption of technological advancements to improve production efficiency and product quality.
Moreover, Ejindu underscored the importance of attracting Foreign Direct Investment from key auto brands like Hyundai, Geely, and Yutong, which could bring advanced technologies and best practices to Nigeria, further driving industrial growth and economic progress.
Nigeria’s strategic position, he noted, allows the auto industry to tap into regional export potentials within West Africa and the African Continental Free Trade Area.
He added that with a potential market size of 1,150,000 vehicles per annum, the industry could not only meet domestic demand but also explore export opportunities, boosting economic growth.
To unlock the full potential of Nigeria’s auto industry, Ejindu called for several policy interventions and strategic initiatives, including the implementation of the Nigeria Automotive Industry Development Plan.
“Fine-tuning the plan would provide a regulatory framework to support industry growth, establish a master plan for automotive raw materials development and component manufacturing, and incentivize CKD assembly through contract manufacturing.
“Reviving tyre, battery, and glass manufacturing is essential as a precursor to revamping local production of various automotive components, fostering SME growth.
“By focusing on these strategic areas, the auto industry could significantly impact Nigeria’s economy, creating jobs, enhancing GDP contribution, and promoting sustainable economic development,” Ejindu stated.
