In spite of the government’s failure to fully utilise this potential, Ifeanyichukwu Agwu, CEO of BKG Exhibitions, stated that Nigerian car spare parts are anticipated to bring in $500 million to $900 million annually.
Speaking on the growth of the auto spare parts market, he stated that indigenous auto part production must start immediately if Africa is to become a major auto centre.
“Let’s start with auto parts, as this will have a lot of beneficial effects. Assembling whole automobiles is a more complex process than producing spare parts. Every vehicle has more than 5,000 parts, which means that 5,000 factories must be established in order to create jobs for our people. There are almost 11,000 auto components companies in India alone, which illustrates the amount of manpower and technology required,” he proposed.
Agwu underlined that there is a demand for auto parts here and that Nigeria is a well-known hub in Africa. Agwu used the recent 2024 auto expo hosted on Victoria Island in Lagos to persuade major auto parts manufacturers to locate their manufacturing facilities in Nigeria.
Since Nigeria is without a doubt the auto parts capital of Africa, we implore spare part manufacturers to establish their operations there. It is not necessary to travel to other African countries. He noted that if you establish your manufacturing base in Nigeria, you would see its reach expand to other nations because of our dealers’ distribution skills.
Additionally, he urged Nigeria’s market leaders in the auto parts industry to collaborate with producers and bring their products to the country for manufacturing, as this is the sustainable course of action. “Trading is good, but manufacturing is where the real investment is,” he said. Because you are creating jobs, it is much less expensive, you generate more money, and the government looks favourably upon you.
With over 120 years of experience as a company, Mohamed Taleb, general manager of Winpart by CFAO, said that Nigeria is a nation of opportunities, and the company has seen this firsthand. Nigeria has been perceived by us as a land of opportunity rather than difficulties. The chance exists notwithstanding the current economic climate.
“At Winpart by CFAO, we import, market, and distribute high-quality car spare parts across the country. Since 2019, when we first opened for business, our revenue has grown.
Mr. Africanus Ogudoro, president of the Ladipo Central Executive Committee of the Auto Dealers Association, agreed that producing auto parts locally would lessen reliance on imports, conserve foreign exchange, and support the expansion of the domestic automotive industry. He thought this initiative would not only create jobs for Nigerians but also promote a more competitive and self-reliant automotive sector.