FG moves to boost local tyre manufacturing, revive rubber industry, inaugurates technical committee

Ilesanmi AdekanbiSeptember 17, 2022

2 minutes read

The Minister of Industry, Trade and Investment, Adeniyi Adebayo, has announced the launch of a Technical Committee to bring back tyre manufacturing in the country.

Adebayo said the President Muhammadu Buhari regime bid to boost and revive Nigeria’s tyre and rubber industry.

The 11-man Technical Committee was inaugurated in Abuja on Friday for the resuscitation of Nigeria’s rubber and tyre industry.

Adebayo charged the committee to produce a roadmap to revive the industry, in line with international best practices.

The Minister noted that they will also work with various states in Nigeria with capacity for rubber production, to boost production capacity for rubber trees in a six-year time frame.

Adebayo said, “You are to develop policy guidelines that will bring back local tyre manufacturing and develop a framework to secure government’s funding for the industry,”.

He added that they will work with state governments to promote rubber plantations and secure funding strategies suitable for planting rubber trees ready for tapping between six years and seven years.

“I request the committee to set up subcommittees that will address some specific issues concerning rubber plantations, the tyre industry, proper processing and financing.

“I want to assure you of the continued support of the Federal Government to resuscitate Nigeria’s rubber and tyre industry,’’ Adebayo said.

Earlier, the National President of the National Rubber Producers, Processors and Marketers Association of Nigeria (NARPPMAN), Prince Peter Igbinosun, described rubber as one of the most economically viable commodities.

He said Rubber promises good returns on investment and high volumes of by-products; “it is engaging and creates employment opportunities at various levels of its value chain”.

“We are looking forward to a vibrant committee that will develop at least a 10-year rubber development policy that will encourage investments, especially raw materials for industrial growth and development.

“Rubber has six years to seven years gestation period, which is a serious disincentive to investors and financial houses.

“Rubber production is capital intensive, labour intensive, land intensive and requires special skills in production.

“Recommending a special package for developing long gestation crops like rubber by the CBN should be one of the responsibilities of this committee,’’ Igbinosun said.

He also noted that the tyre industry in Nigeria collapsed and manufacturers relocated because of power challenges, insecurity, multiple taxations, community influence and repatriation.

He stated that companies including Michelin, Dunlop and Bridgestone left due to “Insecurity prevalent in the Niger Delta, multiple taxations, community influence and repatriation also contributed to their relocation”.