The National Assembly and the National Automotive Design and Development Council (NADDC) have called on automotive manufacturers to deepen their backward integration efforts to boost economic growth and job creation in Nigeria.

During an oversight visit on Monday to Dangote Sinotruk West Africa Limited, Wandel International Ltd (Simba Motorcycle Assembly Plant), and Nord Automobiles Ltd in Lagos, the Senate Committee on Industry highlighted the critical role of the automotive sector in the nation’s development.

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Senate’s Perspective

Senator Shuaibu Lau, Vice Chairman of the committee, stressed the importance of addressing the challenges faced by automotive companies.

“The oversight visit is aimed at helping the automotive industries because they are crucial to Nigeria’s economy,” he said.
He noted the need for a legislative and executive framework to reduce production costs and facilitate expansion.

The committee observed progress in backward integration by some companies but urged others to accelerate their efforts. Lau remarked:

“Achieving this will not be easy, but it is attainable and necessary for sustainable growth.”

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NADDC’s Position

Joseph Osanipin, Director-General of the NADDC, echoed the Senate’s sentiments, emphasizing the importance of increasing local content in automotive production.

“By 2025, we expect significant improvements in backward integration, leading to more job creation and a stronger economy.”

The NADDC committed to revisiting companies by early next year to monitor progress, aiming for substantial reductions in imported materials.

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Industry Challenges

Dangote Sinotruk
McDappa Ngo, Senior General Manager of Human Asset Management at Dangote Sinotruk, highlighted the company’s struggle to remain competitive.

“We have survived since 2014 because Aliko Dangote believes in Nigeria, but the company has not turned a profit. We need urgent government support to remain viable.”
In response, Senator Lau pledged legislative backing to create a more supportive business environment.

Wandel International Ltd
At Wandel, the committee questioned the lack of locally produced materials, despite tariff concessions. Senator Lau urged the company to form partnerships with local manufacturers.

Sohan Sharma, Wandel’s Executive Director, confirmed ongoing discussions with local manufacturers and appealed for tax reductions to prevent price hikes in motorcycles and tricycles.

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Path Forward

The Senate committee reiterated its commitment to addressing systemic challenges like power supply and steel production to support the automotive industry. Lau affirmed:

“Our goal is to see the automotive industry significantly reduce its dependence on imports and emerge as a key driver of Nigeria’s industrial development.”

The visit concluded with optimism that enhanced backward integration and supportive policies could position the automotive sector as a cornerstone of Nigeria’s industrial transformation.