By Daphne Uduneje

Nigeria’s ambition to establish itself as a major automotive manufacturing hub in Africa could remain elusive unless the country moves decisively beyond vehicle assembly and develops a robust local component manufacturing ecosystem capable of anchoring deeper industrialisation.For indigenous automotive component manufacturers, the next phase of Nigeria’s automotive development must be defined by higher local value addition, stronger linkages across the supply chain and a policy environment capable of unlocking long-term investment in component production.This was the central message from the Chairman of the Automotive Local Components Manufacturers Association of Nigeria (ALCMAN), Chief Anselm Ilekuba, at the 3rd Nigeria Auto Industry Summit (NAISU) 2026, organised by the Nigeria Auto Journalists Association (NAJA) in Lagos.The summit, held at the Radisson Hotel, Lagos, under the theme, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the President Bola Tinubu Administration,” brought stakeholders together to examine the opportunities and structural challenges surrounding Nigeria’s transition to cleaner mobility.But for Ilekuba, the debate around electric vehicles (EVs), Compressed Natural Gas (CNG), vehicle assembly and clean mobility must ultimately confront a more fundamental industrial question: how much of the automotive value chain can Nigeria actually build domestically?“There can be no truly sustainable automotive industry without a strong local component manufacturing base,” he said.Beyond Assembly to Value CreationNigeria’s quest to establish a competitive automotive industry has spanned decades, with successive administrations introducing policies and incentives aimed at attracting assembly operations and encouraging investment.Yet, the industry continues to operate against the backdrop of significant import dependence, particularly for vehicles, components, technology and other critical production inputs.For Ilekuba, the country must therefore broaden its definition of automotive success.The number of vehicles assembled locally, he argued, should no longer be the principal yardstick for measuring progress. Greater emphasis should be placed on the depth of local value embedded in each vehicle—from the number and sophistication of components manufactured domestically to the jobs created, technical skills developed, foreign exchange conserved and Nigerian companies integrated into regional and global automotive supply chains.That shift in emphasis is particularly important as the global automotive industry undergoes a structural transformation driven by cleaner mobility technologies.The emergence of EVs and CNG-powered vehicles offers Nigeria an opportunity to develop new industrial capabilities. But without a deliberate strategy for building local suppliers around these technologies, the clean mobility transition could simply replace one form of import dependence with another.For Nigeria, therefore, the EV and CNG agenda is not merely a transportation or environmental policy issue. It is also an industrial policy opportunity.Local Manufacturers Need Investment CertaintyAccording to the ALCMAN chairman, indigenous component manufacturers possess the capacity and willingness to support Nigeria’s vehicle assembly ambitions, but require a more predictable and investment-friendly operating environment.He identified policy consistency, affordable financing, infrastructure, technical skills development, quality standards, research and development, and expanded market access as critical conditions for building a competitive local component industry.The challenge mirrors a broader problem confronting Nigerian manufacturers, where investment decisions are often shaped by the predictability of government policy, access to infrastructure and the cost and availability of capital.For automotive component manufacturers, the challenge is even more pronounced.Component production requires specialised machinery, sophisticated quality-control systems, technical expertise and sustained investment. Manufacturers also need long-term relationships with vehicle assemblers and Original Equipment Manufacturers (OEMs) before committing significant capital to production lines.Without sufficient financing and market certainty, local firms may struggle to make the capital-intensive investments required to meet international automotive standards.Nigerian First as an Industrial StrategyIlekuba also called on the Federal Government to strengthen implementation of the Nigerian First policy, particularly by ensuring that indigenous manufacturers are given fair opportunities to supply components in areas where local production capacity already exists.The proposition goes beyond preferential procurement. Properly implemented, it could help create the demand required to justify fresh investments in component manufacturing while enabling existing producers to scale capacity, upgrade technology and improve quality.A stronger relationship between local component manufacturers and vehicle assemblers could consequently generate a multiplier effect across the wider economy.As demand for locally manufactured components grows, manufacturers would have greater incentives to invest, hire and train workers, adopt new technologies and progressively meet higher quality standards.Ilekuba consequently called for stronger partnerships among component manufacturers, vehicle assemblers, OEMs, fleet operators and other participants in the automotive ecosystem.Such linkages, he maintained, are essential if Nigeria is to transition from an assembly-oriented market into a genuinely integrated automotive manufacturing ecosystem.Industrialisation, Jobs and Foreign ExchangeThe economic case for deeper automotive local content extends well beyond the industry itself.A stronger domestic component manufacturing base could support industrial job creation, develop technical skills, stimulate research and innovation and reduce the foreign exchange required to import automotive components.This is particularly relevant as Nigeria continues to seek ways to strengthen domestic production, diversify its economy and reduce pressure on foreign exchange resources.The automotive sector, with its extensive network of suppliers and supporting industries, has the potential to become a major platform for achieving these objectives.But unlocking that potential requires more than simply encouraging manufacturers to produce locally.Local components must be competitive on quality, cost, reliability and technological sophistication. Without these attributes, policies designed to promote local content could risk creating an industry dependent on protection rather than one capable of competing within Africa’s increasingly integrated market.The strategic objective, therefore, should be to move beyond vehicles merely assembled in Nigeria to vehicles that increasingly embody Nigerian engineering, enterprise, technology and industrial capability.EVs, CNG and the Next Industrial FrontierThe transition towards EV and CNG mobility could provide an important opening for local manufacturers to participate in new segments of automotive production.While both technologies introduce new technical and supply-chain requirements, they also create opportunities in areas ranging from components and conversion technologies to maintenance, charging and refuelling infrastructure, software, battery-related services and specialised technical skills.For Nigerian manufacturers, the transition provides an opportunity to enter emerging areas of automotive production rather than simply compete in established component categories.However, that opportunity will require early investment in research and development, technical training, quality certification and partnerships with vehicle manufacturers and technology providers.The policy challenge for government is therefore to ensure that Nigeria’s clean mobility transition does not become predominantly an import-driven exercise.Instead, the emerging EV and CNG ecosystem should be deliberately structured to create opportunities for indigenous companies to develop, manufacture and supply products and services within the evolving value chain.From Policy Pronouncements to Industrial LinkagesIlekuba stressed that government cannot build a globally competitive automotive industry alone.He called for coordinated action involving manufacturers, assemblers, dealers, financiers, academic institutions, development partners, regulatory agencies and the media.Such collaboration, he argued, would be critical to creating an ecosystem capable of supporting investment, innovation and sustained industrial growth.He also commended NAJA for sustaining NAISU as a platform for dialogue, knowledge-sharing and collaboration among stakeholders in the automotive industry.For ALCMAN, the strategic ambition is clear: Nigerian manufacturers must move from being peripheral participants in the automotive economy to becoming integral players across its value chain.Ilekuba reaffirmed the association’s commitment to working with the Federal Government, NAJA and other stakeholders to build a globally competitive automotive industry anchored on Nigerian expertise and local content.Ultimately, Nigeria’s automotive opportunity extends far beyond the number of vehicles rolling out of assembly plants.The more consequential measure of transformation may be how much of each vehicle is designed, engineered, manufactured, serviced and supported within the Nigerian economy.If policy consistency, affordable financing, infrastructure, technical skills and market access can be aligned, local component manufacturing could become a powerful engine of industrialisation—helping Nigeria conserve foreign exchange, deepen manufacturing capacity, create skilled employment and build a more resilient automotive value chain.More importantly, it could enable Made-in-Nigeria automotive components to evolve from import substitutes into globally competitive products capable of serving the wider African market and, ultimately, international markets.