by Moses Akaigwe
Key players in strategic sub-sectors of the country's automotive industry. – parts manufacturer – recently gathered in Abuja to interact with officials from the Federal Ministry of Industry, Trade and Investment and the National Automotive Design and Development Council (NADDC).
•lr: Chief Anselm Lekuba, Coordinator, Association of Local Content Manufacturers of Nigeria (ALCMAN), Chief Dr. Innocent Chukwuma, Chairman and Chief Executive Officer, Innoson Vehicle Manufacturing Limited. Chief Chika Okafor, Chairman and CEO of Chikason Group Ltd., attended the event in Abuja.
The gathering, convened by the ministry and attended by industry players from across the country, focused on getting the pulse of strategic manufacturers on how to improve the country's economy from an automotive industry perspective.
The meeting was held at the Bank of Industry (BOI) Building in Abuja.
As expected, current auto parts manufacturers used the forum to point out the numerous challenges underlying domestic auto parts manufacturing.
In his remarks during the interaction, the Coordinator and Liaison Officer of the Automotive Components Manufacturers Association of Nigeria (ALCMAN), Mr. Anselm Irekuba, said the conference was an opportunity for everyone to join hands in reviving auto component manufacturing in Nigeria. He said it was timely.
Irekuba stressed the need for government support for the automobile industry, saying, “Without money, nothing works, but even if money is given, if it is not managed effectively, it will be a complete waste of time.'' ” he said. However, money alone cannot do everything, and passion is also a part of money. ”
The ALCMAN coordinator reminded the audience that in the 80s, the Nigerian automobile industry sourced about 40 percent of its parts domestically.
He recalled that components such as glass, tires, batteries, brake pads, foam and seats, exhaust systems, electrical cables etc. were all produced locally and supplied to local assembly plants in PAN Nigeria, Kaduna and other locations. Ta. ANAMMCO, Enugu; Volkswagen, Lagos etc.
He said less than 10 per cent of parts produced in Nigeria's cars are currently sourced locally.
Irekuba therefore recommended that the country achieve 40 per cent of indigenous raw materials. Free trade on the African continent (AfCFTA), much attention needs to be focused on supporting local component manufacturing.
To this end, he advocated the need for cooperation in various areas, including the revival of auto parts manufacturing in Nigeria. Facilitate connections between suppliers and domestic auto manufacturing. It also identifies sources of raw materials and suppliers of raw materials to component manufacturers.
Local content manufacturers pointed out that it is also important to establish financing methods and cooperate with the government in providing industrial infrastructure to component manufacturers.
The ALCMAN Chairman concluded his speech by calling on the federal government and other stakeholders in the automotive industry value chain to share the plight of auto parts manufacturers and explore new avenues. It's about finding collaborations, new sources of funding, and other strategic ways to make the auto parts manufacturing sector successful.