• Monday, July 15, 2024
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Nigeria’s auto components manufacturers seek policy, funding to revive operations

Nigeria’s auto components manufacturers seek policy, funding to revive operations

Nigeria’s auto components manufacturers have called on the Federal Government to put the right policy in place and provide funding and incentives that would aid local manufacturers to revive operations in Nigeria.

According to them, Nigeria needs to be intentional about developing the right policy that will help to revive its local auto component manufacturing sub-sector.

They also expressed concern over Nigeria’s dependence on imported auto components while the local component manufacturers struggle to survive.

This was part of the outcome of the stakeholders meeting organised by the Federal Ministry of Industry, Trade, and Investment in Abuja, recently to feel the pulse of the auto components manufacturers and strategise on how to better the nation’s economy.

During the meeting, the automotive component manufacturers did not hesitate to point out the numerous challenges limiting their operations in Nigeria.

Anselm Ilekuba, coordinator/liaison of the Auto Component Manufacturers Association of Nigeria (ALCMAN), said all must join hands in reviving automotive components manufacturing in Nigeria.

He said there is a need for the government to support the automotive components manufacturing industry through incentives, funding or policy.

According to him, without money, nothing moves, but when money is given and it is not effectively managed, it amounts to sheer waste of resources.

He pointed out that money cannot do everything as there is also a need for passion on the part of stakeholders.

Going back the memory lane, he said, back in the 80s, the Nigerian auto industry sourced about 40 percent of its components locally.

He listed some of the components sourced locally in those days including glasses, tyres, batteries, brake pads, foam and seats, exhausts, and electric cables were all produced locally and supplied to local assembly plants.

“Nigeria supplies less than 10 percent of its local parts to local vehicle manufacturers. For Nigeria to achieve the 40 percent local contents requirement of the African Continental Free Trade Agreement, much attention has to be geared towards support for regional components manufacturing,” Ilekuba said.

Ilekuba called for collaboration in areas such as providing a link between suppliers and vehicle manufacturing in the country, identifying sources and suppliers of raw materials to component manufacturers, creating a method of funding, and collaborating with the government on the provision of industrial infrastructures for component makers.

He called on the Federal Government and other stakeholders in the automotive industry value chain to share in the plight of automotive component manufacturers, explore new avenues of collaboration, and innovative sources of financing as well as find other strategic ways that will drive the automotive components manufacturing sector to success.