The Federal Government’s push for locally assembled vehicles could create a sustained market for Nigerian-made spare parts, with maintenance demand offering component manufacturers business opportunities beyond the initial purchase of vehicles.
Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin said local component manufacturers could emerge as major beneficiaries of the Nigeria First policy as government vehicles require regular servicing and replacement parts throughout their lifespan.
Osanipin said spending on spare parts was already substantial, arguing that prioritising locally assembled vehicles in government procurement could provide a continuing market for domestic manufacturers.
“Procurement can be done once, maybe you buy a vehicle and use it for four years, but throughout the lifespan of that vehicle you will continue to maintain it,” he said.
He said this recurring demand could encourage local production of automotive components rather than leaving the benefits of government purchases largely with vehicle assemblers.
The policy could also help Nigerian manufacturers prepare to sell their products in other African markets, where meeting rules of origin is necessary to qualify for preferential trade under the African Continental Free Trade Area (AfCFTA).
Osanipin said Nigerian manufacturers would need to demonstrate sufficient local content in their products to meet the requirements, citing a 40 per cent local-component threshold.
He argued that increasing the use of locally manufactured components through government procurement could help build the domestic production capacity required to access markets across the continent.
However, the extent of the opportunity will depend on how much of the vehicles procured by government are assembled locally, the proportion of their components sourced from Nigerian manufacturers and the ability of domestic suppliers to meet demand at competitive prices.
