FG Pushes Local Tyre, Battery Production to Cut Imports, Boost Auto Value Chain
The Federal Government has renewed calls for increased local production of tyres and batteries as part of efforts to reduce Nigeria’s dependence on imports, conserve foreign exchange, and strengthen the automotive value chain.
Speaking at a sensitisation workshop in Abuja themed “Revitalising the Automotive Value Chain in Nigeria: Strategies for Growth in the Tyre and Battery Sectors”, Director-General of the National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin, said Nigeria has the raw materials, capacity, and market size to produce tyres and batteries locally.
He noted that continued importation amounted to avoidable capital flight, stressing that over 60 million tyres are currently in use nationwide, representing a huge domestic market.
Osanipin highlighted Nigeria’s position as one of Africa’s leading producers of natural rubber, lamenting that exporting raw materials without processing undermines industrial development. “We cannot continue to export raw materials and import finished products. Where we have comparative advantage, we must take advantage of it,” he said.
He added that tyres and batteries were critical entry points for automotive localisation because their production technologies are less complex and rely largely on locally available inputs.
Chairman of the Nigeria Automotive Manufacturers Association (NAMA), Mr. Bawo Omagbitse, said localisation was key to achieving the 40 per cent local content requirement needed to trade competitively under regional frameworks.
He argued that tyres and batteries offered a practical starting point for localisation, given Nigeria’s raw material base and market demand.
Omagbitse expressed optimism that Nigeria could attain between 35 and 40 per cent local content in the automotive sector within five years if stakeholders sustained current efforts.
Deputy Chairman of the House Committee on Environment, Hon. Terseer Ugbor, stressed that local production of tyres and batteries had implications beyond economic growth, including public safety, environmental protection, and community health.
He warned that improper disposal of substandard tyres and batteries contributes to air, soil, and water pollution, and assured stakeholders of legislative support for environmentally responsible manufacturing.
Other stakeholders, including representatives of the Standards Organisation of Nigeria (SON) and the Bank of Industry (BOI), pledged support for quality assurance, financing, and regulatory compliance to strengthen local production.
The push for localisation aligns with the Federal Government’s Nigeria-First Policy, which promotes local manufacturing and value addition, and reflects broader efforts to reduce import dependence while positioning Nigeria’s automotive industry for sustainable growth.
