Nigeria Can Surpass China in Auto Spare Parts Manufacturing

The President of the Auto Spare Parts and Machinery Dealers Association (ASPAMDA), Hon. Ngozi Emechebe, has expressed optimism that Nigeria has the potential to rival and even surpass China in the production of automotive and machinery spare parts—provided the right investments and policies are put in place.

Speaking at the opening ceremony of the Lagos Motor Fair and Autoparts Expo at the Federal Palace Hotel, Lagos, Hon. Emechebe highlighted Nigeria’s past achievements in local spare parts manufacturing, particularly in Nnewi, a town once renowned for its thriving automotive industry.

“At one point, Nigeria was on the verge of assembling vehicles using locally manufactured spare parts. Nnewi was a hub for auto parts production, and we nearly reached the stage of full-scale vehicle assembly before things took a downturn,” he recalled. He, however, noted that companies like Innoson Motors are reigniting the industry and proving that local vehicle manufacturing is still possible.

The ASPAMDA president commended President Bola Ahmed Tinubu’s administration for taking steps to revamp the country’s automotive and manufacturing sectors. He acknowledged the renewed interest in local production, stating that several companies are beginning to restart operations in Nigeria, signaling a positive shift for the industry.

Lagos Motor Show: A Game Changer

Hon. Emechebe lauded the organizers of the Lagos Motor Fair and Autoparts Expo, describing the event as a significant platform for fostering business relationships between local dealers and international manufacturers. He singled out Mr. Ifeanyi Agwu, the event’s convener, for his unwavering commitment to sustaining the expo over the years.

“This expo has saved our members the stress and financial burden of traveling to different parts of the world to meet with manufacturers. Before now, ASPAMDA members had to visit Europe, Japan, and Taiwan in search of business partners. But with this platform, the world’s top spare parts makers now come to Nigeria to showcase their products, allowing our members to connect and grow their businesses from home,” he said.

According to him, this development has led to significant cost savings for Nigerian dealers, eliminating expenses associated with flights, accommodation, and other logistics.

Lessons from Taiwan and China

Reflecting on past challenges, Hon. Emechebe recounted how Nigerian spare parts traders initially sourced their products from Taiwan. However, as Nigerian demand grew and their businesses expanded, Taiwanese manufacturers restricted access and increased prices, forcing Nigerian traders to pivot to China.

“I hope that one day, China, too, will close its doors on us, compelling us to manufacture our own products rather than depend on imports,” he remarked.

Despite its challenges, Nigeria currently dominates the African auto spare parts market, with ASPAMDA serving as a central hub supplying countries such as Angola, Ghana, Togo, Ivory Coast, Gambia, and Senegal. Hon. Emechebe noted that even Chinese manufacturers recognize the strategic importance of ASPAMDA in driving their exports to Africa.

Government Support Needed for Local Manufacturing

While highlighting Nigeria’s potential in the automotive industry, the ASPAMDA president urged the Federal Government to address the excessive taxes and import duties that are stifling local manufacturers.

“It is currently more cost-effective to import finished products than to manufacture them in Nigeria. High taxes, expensive energy costs, and poor infrastructure are pushing companies to relocate to neighboring countries,” he lamented.

Hon. Emechebe called on the government to create a more business-friendly environment to encourage local production. According to him, with the right policies, Nigeria can not only sustain its dominance in Africa’s spare parts market but also emerge as a global force in automotive manufacturing.

With renewed government commitment, investment in local industries, and a focus on self-sufficiency, Nigeria’s dream of becoming a major player in the global automotive industry may not be far-fetched.