NADDC begins import-deletion programme for motorcycle, tricycle components
The National Automotive Design and Development Council (NADDC) has commenced the implementation of an import-deletion programme aimed at promoting local manufacturing of motorcycle and tricycle components, creating jobs and conserving
The National Automotive Design and Development Council (NADDC) has commenced the implementation of an import-deletion programme aimed at promoting local manufacturing of motorcycle and tricycle components, creating jobs and conserving foreign exchange.
The Director-General of NADDC, Oluwemimo Osanipin, said this at a stakeholders’ sensitisation meeting on the implementation of the import-deletion programme for motorcycle and tricycle component parts, held at the Radisson Blu Hotel, Ikeja, Lagos.
Osanipin said that one of the statutory mandates of the council is to identify automotive parts currently being imported into the country and recommend those with local manufacturing potential for deletion from the import list.
According to him, import deletion means such components will either no longer be imported or, if imported, will no longer enjoy tariff incentives.
“This policy is designed to encourage the local production and manufacturing of these parts in Nigeria. When we localise manufacturing, there are enormous economic benefits, including job creation, value addition across the supply chain and reduced pressure on foreign exchange,” he said.
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He noted that localising components such as tyres and batteries would stimulate growth across related sectors, as raw materials would also be sourced locally, thereby deepening local content and expanding the economy.
“You are stopping importation, saving forex and at the same time improving our technical know-how. There will be capacity building, better customisation of products to suit Nigerian weather and terrain, and improved quality control through existing standards,” he added.
On Nigeria’s manufacturing capacity, the NADDC boss said the programme was deliberately starting with motorcycle and tricycle components because of the relatively simple technology and lower capital requirements involved.
“We are not saying we want to do 100 per cent immediately. We want to start with what we can do competitively. We have identified components like cellophane seat covers, plastic parts, foam and fixers that can be produced locally,” he said.
Osanipin disclosed that some local firms already have the capacity to manufacture specialised plastic parts for motorcycles and tricycles, while another company can produce up to 30,000 lead-acid batteries monthly.
Executive Director of the Motorcycle Manufacturers Association of Nigeria, Lambert Ekewuba, identified policy inconsistency and low production volume as major bottlenecks affecting the success of previous deletion programmes.
“Nigeria has over five million motorcycles and about three million tricycles, yet we cannot produce enough parts locally. One major challenge has been inconsistent government policies, including bans on motorcycle operations in some states, which reduce volume and discourage investment,” he said.
Ekewuba called for harmonisation of tariffs on raw materials and fully built components, stressing that manufacturers would only be encouraged to produce locally if importing raw materials is cheaper than importing finished parts.
He urged the government to protect local manufacturers and maintain policy consistency to avoid a repeat of past experiences where investors suffered losses due to abrupt policy reversals.
Chairman of the Nigerian Automotive Manufacturers Association, Bawo Omagbitse, said sustained protection and long-term policy consistency were critical to deepening local manufacturing and attracting investment into the sector.
“All nations engineer their growth. There must be some level of protection for productive industries. Without deletion, you cannot develop the automotive industry. You cannot get local content by mere assembly; you must produce parts locally,” he said.
Omagbishe recalled that Nigeria once achieved up to 40 per cent local content in some automotive firms, with over 70 component manufacturers nationwide, stressing the need for consistent policies over a long period to revive the sector.
He added that beyond policy consistency, improvements in infrastructure, energy supply and logistics were necessary to ensure cost competitiveness and sustainable growth of the automotive industry.
