Nigeria’s auto components manufacturers are urging the Federal Government to implement conducive policies and provide essential funding and incentives.
During a stakeholders meeting organized by the Federal Ministry of Industry, Trade, and Investment in Abuja, concerns were raised about Nigeria’s heavy reliance on imported auto components while local manufacturers struggle to stay afloat.
Anselm Ilekuba, the coordinator/liaison of the Auto Component Manufacturers Association of Nigeria (ALCMAN), emphasized the necessity for collaborative efforts to rejuvenate automotive components manufacturing in the country. He stressed the importance of government support through incentives, funding, or policy frameworks.
Ilekuba highlighted the pivotal role of funding, underscoring that financial support must be effectively managed to prevent wastage of resources. He also emphasized the significance of passion among stakeholders, alongside financial backing.
Reflecting on the past, Ilekuba noted that in the 1980s, Nigeria sourced about 40 percent of its auto components locally. However, currently, the country supplies less than 10 percent of local parts to local vehicle manufacturers. To meet the 40 percent local contents requirement of the African Continental Free Trade Agreement, Ilekuba emphasized the need for robust support for regional components manufacturing.
He called for collaboration to facilitate links between suppliers and vehicle manufacturers, identify sources of raw materials, establish funding mechanisms, and collaborate with the government to provide industrial infrastructure for component makers.
Ilekuba urged the Federal Government and stakeholders in the automotive industry value chain to address the challenges faced by automotive component manufacturers. He emphasized the importance of exploring new collaboration avenues, innovative financing sources, and strategic initiatives to drive success in the automotive components manufacturing sector.
