Africa has become a dumping ground for 55 million used vehicles from Europe and America, the Chief Executive Officer of the the African Association of Automotive Manufacturers (AAAM), David Coffey, has said.
He said the trend can change if there is synergy between the National Automobile Design and Development Council (NADDC) and AAAM, which is on a mission is to industrialise and grow the automotive sector in Africa.
He said the sector can be developed wworking with African governments to develop and refine policies, collaborating with the public and private sectors, promoting affordable mobility with safe, low-emission vehicles, and eveloping a value chain, including finance sector partnerships.
Coffey, who dissected Nigeria’s manufacturing capability, identified the lack of demand as a key challenge.
He called for the strengthening of the automobile policy for increased investment in the sector, adding that partnership with local businesses would boost local production, enhance technology transfer and raise industrial capacity.
He was impressed by the capability he witnessed and suggested partnering with local businesses.
Coffey spoke during the tour of automobile companies by the Director-General of the National Automobile Design and Development Council (NADDC), Mr Joseph Osanipin.
Accompanied by the AAAM team, he visited Innoson Vehicle Manufacturing (IVM) and Afro Asia at Nnewi, Anambra State, where he applauded the companies for their innovation approach.
Osanipin expressed a strong interest in replicating Innoson’s model to boost local manufacturing capabilities across Nigeria.
The Director-General acknowledged the success of Innoson, which manufactures complete CNG buses from scratch, using locally sourced materials like glass, iron, and plastic.
He said the model should be replicated in other manufacturing entities and partnering with Innoson to grow the industry.
Osanipin also emphasised the importance of setting standards and conducting peer reviews with other economies.
He praised Innoson’s use of local content and urged the company to improve it to 70-80 percent in view of the necessary capacity, expertise, and materials available.
Osanipin said the vehicles produced by IVM have met global standards, adding that the factory has the capacity to produce at least 30,000 vehicles per year if orders are placed.
Inoson Motors Chief Executive Officer Dr Innocent Chukwuma, urged Nigeria to adopt Natural Compressed Gas (CNG) as a fuel source, given the high cost of Premium Motor Spirit (PMS).
He said the Compressed Natural Gas (CNG) vehicle is the best option, stressing that it is a cheaper attractive alternative.
Chukwuma said: “The federal government should issue directives to promote the adoption of CNG, as it is crucial for saving our economy from the burden of expensive PMS. As the president highlighted, fuel costs are draining our country’s resources.
“By switching to CNG, we can conserve funds for other essential purposes. I urge everyone to support the transition to CNG, as it will benefit both individuals and the nation as a whole. A prosperous Nigeria benefits everyone.”
Osanipin also visited the Afro Asia Nigeria Limited, where the CEO Chief A.C. Okafor, presented a comprehensive overview of the company’s manufacturing processes, ranging from plastic recycling to finished product production.
Okafor, who spoke on the challenges confronting the industry, said policy inconsistency is a significant obstacle.
He emphasised the need for auto policy legislation to unlock the industry’s full potential and facilitate its growth.