The CEO of BKG Exhibitions, Ifeanyichukwu Agwu said, Nigerian auto spare parts generate an estimated annual revenue ranging from $500 million to $900 million, even though, government has failed to capitalise on this potential.
Speaking on the development of the auto spare parts market, he said, to become a prominent auto hub in Africa, there is a pressing need to commence the local manufacturing of auto parts. parts is less complex compared to assembling entire vehicles. Each vehicle comprises over 5,000 parts, which implies the establishment of 5,000 factories and the creation of employment opportunities for our populace. In India alone, there are approximately 11,000 auto parts companies, highlighting the extent of labour and technology involved,” he suggested.
“Let us initiate this with auto parts, as it will have a multifaceted positive impact. The production of spare parts is less complex compared to assembling entire vehicles. Each vehicle comprises over 5,000 parts, which implies the establishment of 5,000 factories and the creation of employment opportunities for our populace. In India alone, there are approximately 11,000 auto parts companies, highlighting the extent of labour and technology involved,” he suggested.
Agwu, leveraging the 2024 auto expo held at Victoria Island, Lagos, recently to entice major auto parts manufacturers to establish their manufacturing facilities in Nigeria, emphasised that, the market exists here, and the country is a prominent hub in Africa.
“We urge spare parts manufacturers to set up their plants in Nigeria, as it is undeniably the auto parts hub of Africa. There is no necessity to explore other African nations. Establish your manufacturing base in Nigeria, and you will witness its reach extend to other countries due to our dealers’ distribution capabilities,” he pointed out.
He also called on market leaders in the auto parts sector in Nigeria to partner with manufacturers and bring them to Nigeria for production because that is what is sustainable. To him, “Trading is good, but the real investment is in manufacturing. It is a lot cheaper, you make more profit, and you are in the good books of the government because you are creating employment.”
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