Worried by massive importation of all manners of spare parts of vehicles into the country, the Federal Government has unfolded an investment package for Small and Medium Enterprises (SMEs) to boost local production of automotive parts and components.
Coming under its local content promotion initiative for local sector operators, the deal comes on the heels of the re-emergency of automobile assembly plants, which currently rely mainly on imported components for their respective operations
Worried by massive importation of all manners of spare parts of vehicles into the country, the Federal Government has unfolded an investment package for Small and Medium Enterprises (SMEs) to boost local production of automotive parts and components.
Coming under its local content promotion initiative for local sector operators, the deal comes on the heels of the re-emergency of automobile assembly plants, which currently rely mainly on imported components for their respective operations
The Minister of State in the Ministry of Trade and Investment, Samuel Ortom, who gave an insight into the package, harped on the abundance of investment opportunities which according to him, exists in the Nigerian automotive industry.
“The importance of the automotive industry to the national economy cannot be over-emphasised. It is a vital industry in a developing economy like Nigeria. One of the major benefits accruing from the automotive industry is large employment generation, particularly when automotive components and parts manufacturing are fully developed.
The package was unfolded last week in Abuja at an automotive business forum, where it was stated that intervention funds would be made available for the projects by the Bank of Industry (BOI) and the National Economic Reconstruction Fund (NERFUND).
Under the arrangement, agencies like the National Agency for Science and Engineering Infrastructure (NASENI) are expected to offer technical expertise for SMEs wishing to venture into local production of auto components.
Areas to be covered by the package include: motorcycle head light assembly; motor vehicle headlight; rear light and trafficator light; automotive rubber bushings and pedal pads; automotive fuel and air filters; motorcycle crank pedal; motor vehicle door locks and handles; leaf springs; fabricated structural bicycle components; motor vehicle horns and ignition coils; motor vehicle window winding mechanisms; and motor vehicle window winding mechanisms.
Also speaking at the event, Director-General of the National Automotive Council, Aminu Jalal stressed that the automotive industry sources about 70 per cent of the over 2000 parts and components that make-up a typical car from small and medium enterprises and stressed the need to take advantage of such opportunities to create wealth and jobs for Nigerians.
According to him, “besides, supplying the assembly plants, many automotive parts and components are also needed for vehicles service, repair and maintenance.
“It should therefore be viewed as one of the corner stones for establishing a self-sustaining economy, job creation and upgrading the standard of living of Nigerians. The automotive industry gives an opportunity to diversify into sophisticated, technically demanding activities that supports higher rates of economic growth.
“The Nigerian automotive industry is about five decades old. The local automotive assembly plants, except in a few cases, are not supported by parts and components from local manufacturers. IT has therefore become imperative to woo interested investors to take-up the challenge of providing parts and components to the assembly plants”, he stressed.
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