October 15, 2014
Editor Economic Development & Policies, Editor's Pick, Investing
Innoson Vehicle Manufacturing Company Nigeria’s First Automotive Maker


VENTURES AFRICA – Despite unsuccessful campaigns in 2004, 2009, and 2010 to pass a bill aimed at encouraging the purchase of locally made products, Nigeria has reassured local producers of increased patronage in the coming years, after resurrecting plans to provide legal cover for locally made commodities.

The law is expected to return a host of benefits to the Nigerian economy including GDP growth, better employment opportunities, poverty alleviation and protection for local industries. Import spending can be diverted to projects aimed at deriving innovative financing for Nigeria’s transformation.

Locally made products accounted for 89.2 percent contribution toward Nigeria’s Gross Domestic Product in 2014, a far cry from 68.9 percent contribution recorded in 2011. The Nigerian Export Promotion Council (NEPC) has further encouraged this cause by making the non-oil export a significant contributor to Nigeria’s GDP.

Made-In-Nigeria Products Promotion Organization (MINPPRO) promotes products and services made in Nigeria to international markets. It identifies and sources appropriate technology for production that will enhance global competitiveness. It serves as the regulatory body to check production activities within the country.

Local goods, largely branded as inferior in the past, are seeing rapid improvements in quality, boosting their chances of competing with international market players. For instance Stallion Nigeria produces fresh standard rice packaged to meet international standards. Interior Options (IO) offers a functional and contemporary range of Nigerian made furniture without the need to import equipment or designs. This suggests a lower level of reliance on foreign goods and services. Similarly, emerging indigenous automaker Innoson Vehicle Manufacturing is on an audacious path to dominate the country’s automotive market, a sector flooded with global brands such as Toyota, Peugeot, Hyundai and Honda.

To further cement this trending development, an Aba-Made exhibition was initiated last year by Eyinnaya Adaribe, Chairman of Senate Committee on Media and Communications. The second edition, currently taking place in Abuja, showcases an array of consumer goods such as shoes, bags, and clothing, all made locally in Aba, the largest trading hub Eastern Nigeria. The fair has shown great potential in the promotion of locally produced goods.

The senate has said the bill will be passed by the National Assembly in no distant time as it has gone through several stages.

Local manufacturers to ensure that they meet up with international standardization and appeal to Nigerians to show some encouragement through constant patronage and commendation.