ALCMAN calls for stronger local content to boost auto industry

The Automotive Local Components Manufacturers Association of Nigeria (ALCMAN), has urged the federal government to strengthen policies that promote local content and deepen collaboration with indigenous manufacturers as part of efforts to transform Nigeria into a leading automotive manufacturing hub in Africa.

Anselm Ilekuba, chairman of the Automotive Local Components Manufacturers Association of Nigeria (ALCMAN), stated this recently at the 3rd Nigeria Auto Industry Summit (NAISU) 2026, noting that the future of Nigeria’s automotive industry depends on building a robust local component manufacturing base rather than relying heavily on imported vehicle parts.

While noting that Nigeria faces a critical decision on whether to develop a self-sustaining automotive sector capable of driving industrialisation, creating jobs and boosting economic growth, Ilekuba said there can be no truly sustainable automotive industry without a strong local component manufacturing base.

According to him, local content should be viewed not merely as an industrial policy objective but as the foundation of a resilient automotive ecosystem capable of competing globally.

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“Every vehicle assembled in Nigeria should, as much as possible, reflect Nigerian engineering expertise, innovation and enterprise through the increased use of locally manufactured components.

“Indigenous component manufacturers possess the capacity and commitment to support vehicle assembly and strengthen Nigeria’s automotive value chain but require an enabling business environment to thrive,” Ilekuba said.

He identified consistent government policies, affordable financing, improved infrastructure, technical skills development, quality standards, research and development, and expanded market opportunities as critical factors needed to encourage local manufacturers to invest and grow.

Ilekuba also urged policymakers to shift attention from vehicle assembly alone to the level of local value addition in the industry.

“The country’s automotive transformation should be measured by the number of components produced locally, the number of Nigerians employed and trained, the amount of foreign exchange saved, and the extent to which local companies are integrated into global automotive supply chains,” he said.

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Ilekuba called on the federal government and relevant agencies to deepen partnerships with component manufacturers while fostering stronger linkages between local producers, vehicle assemblers, Original Equipment Manufacturers (OEMs), fleet operators and other key industry players.

He further advocated full implementation of the Nigerian First policy, saying indigenous manufacturers should be given fair opportunities to supply automotive components wherever local production capacity exists.

According to him, Nigeria’s automotive industry has enormous potential to become a major driver of economic diversification through job creation, technological innovation, skills development and foreign exchange conservation.

He, however, noted that achieving these goals would require coordinated efforts by the government, manufacturers, assemblers, dealers, financiers, academic institutions, development partners and the media.

Ilekuba reaffirmed ALCMAN’s commitment to working with the federal government, NAJA and other stakeholders to build a globally competitive automotive industry anchored on local content and Nigerian expertise.

He expressed optimism that with sustained collaboration, Made-in-Nigeria automotive components would become the preferred choice both locally and internationally, positioning the country as a major automotive manufacturing destination on the African continent.