Nigeria’s automotive industry holds significant potential to contribute to the country’s economic development, the Nigeria Auto Manufacturers Association (NAMA) has said.
The manufacturers also called for incentive to revive local manufacturing of tyres, batteries, glasses and other components that can stimulate the growth of small and medium enterprises (SME), leading to job creation and economic diversification.
A Council member of the NAMA, Ben Ejindu, in his presentation at the maiden edition of the Nigeria Auto Industry Summit (NAISU), held in Lagos, said the industry was critical to the growth of Nigeria’s economy.
The summit was organised by the Nigeria Auto Journalists Association (NAJA), in conjunction with the National Automotive Design and Development Council (NADDC).
- NIGERIA DAILY: Reasons For Increase In Electricity Tariff For Band A Users
- Samoa agreement signed in Nigeria’s interest – FG
Ejindu explained that with strategic focus on employment generation, gross domestic product (GDP) contribution, economic linkages, SME support, skills development, technology innovation and industrialisation, the sector is poised to drive Nigeria’s economic progress.
Noting that the auto industry is a critical driver of employment in Nigeria, he said that by establishing and expanding Completely Knocked Down (CKD) and Semi Knocked Down (SKD) assembly plants, the sector could generate substantial job opportunities.
He added that the availability of a large and trainable workforce further supports this potential, creating a robust foundation for economic growth.
Ejindu said the auto industry contributed significantly to Nigeria’s GDP through manufacturing and assembly activities.
According to him, the current statistics of $210 million and 0.04 per cent to the country’s GDP provided by the Nigeria Auto Manufacturers Association illustrates the sector’s economic impact with a huge potential to grow.
He said strategic investments in the industry could enhance its GDP contribution, fostering economic stability and growth.
He emphasised that the auto industry created numerous opportunities for SME growth through the production of automotive components and parts.
He explained that investment in skills development and technology innovation was essential for auto industry’s growth.
He said: “Training programmes and partnership with educational institutions can equip the workforce with the necessary skills to thrive in a competitive market.
“Embracing technological advancements will enhance production efficiency and product quality.
“The auto industry plays a vital role in Nigeria’s industrialisation efforts. Attracting foreign direct investment from key auto brands, such as Hyundai, Geely, and Yutong, can bolster the sector’s development.
“These investments bring advanced technologies and best practices, driving industrial growth and economic progress.’’
The Nigeria Auto Manufacturers Association outlined the immense potential of Nigeria’s auto industry to drive economic growth and development.
By focusing on employment generation, GDP contribution, economic linkages, SME support, skills development, technology innovation, industrialisation and strategic interventions, the sector can significantly impact Nigeria’s economy. Harnessing abundant resource endowments, attracting foreign direct investment and tapping into export potentials will further strengthen the industry’s role in promoting sustainable economic growth.
According to NAMA, with the right policies and strategic initiatives, Nigeria’s auto industry is poised to become a cornerstone of the country’s economic development.
Meanwhile, the Lagos State Government has expressed its readiness to give necessary support for genuine players in the automotive industry to ensure the development of the sector in the state.
The Commissioner for Transportation in the state, Mr Oluwaseun Osiyemi, represented at the summit by the Director of Public Transport and Commuter Services for Lagos State, Olusoji Adebayo, an engineer, said the state government would provide the enabling environment for the industry to thrive.
He said, “As we gather here, we are reminded of the critical role the auto industry plays in not only driving economic growth but also fostering innovation, creating jobs and enhancing the overall quality of life for our citizens.
“Lagos State, as a hub of economic activities and a key player in Nigeria’s development, recognises the immense potential within the auto industry.”
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
