FG Plans New Auto Industrial Park to Boost Local Manufacturing, Cut Costs

them, but because of after-sales.
“We need to start focusing on what parts we are using because you buy a vehicle once, but you maintain your vehicle over a long period.”
He added that the country needed to determine those component spare parts that Nigeria has the comparative advantage to produce locally, adding that it is already working with partners on the initiative.
On the proposed industrial park, he said the council has begun talks with partners to actualise the ambition.
He said, “If we work on a new auto industrial park, why do we need that one? I’ve mentioned the other time that we have some people that operate in shallows. They have the expertise, but they don’t have the finance.
“They have the expertise, but they don’t have the equipment. They don’t have the facility. So, if we build this, we provide the facility, and we can bring everybody together in an industrial park.
“We provide the electricity, security, majority of it, and they are going to have shared facility. If we put it together, we are going to have only one conference room like this, which will be available for them, If you have about 300 manufacturers there, they will use, they will share the same facility. They will have the same content.
“So, which means they can be able to work there and then reduce their cost because they are going to share most of the facilities together. And if we do this, we are going to increase their capacity to produce.”
Osanipin added, “We are going to reduce the cost of production, and we are going to make it easier for them to scale up. These are part of the programme we are putting in place to ensure that we meet the local component, and increase the local component input that we are using for our vehicles.
“We have seen areas where, for example, we needed about 500,000 air filters daily but we can only produce 100,000.
“If that is the case, it means we have to do something about having more company to produce it locally. So, why are we establishing this? Because we have to be sure. Any policy that we come up with must not be one that will have unintended effects on the people.
“If you cannot provide it locally, there are little things you can do to stop it from coming in. So that’s what we’ve done. We’ve established that especially motorcycles, a lot of plastic parts can be manufactured in Nigeria.

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