Cosmas Maduka Coscharis Regrets Investing N1.7billion On Vehicle Assembly Plant - |Ads4naira Blog|

Cosmas Maduka Coscharis Regrets Investing N1.7billion On Vehicle Assembly Plant

Dr. Cosmas Maduka, the President of Coscharis
Group, recently lamented about his decision to
invest N1.7billion in an automobile assembly
plant in the country.
His lamentation is as a result of the effect of the
hesitant implementation of the auto policy in the
Nigeria auto industry by the Federal Government.
Maduka is one of Nigeria’s biggest investors in
the automotive sector. His company, Coscharis
Group, built an auto-assembly plant on a 14-
hectare piece of land in Awoyaya area of Lekki-
Epe expressway, Lagos. The project is in
conjunction with Ford Motor Company.
The plant was inaugurated in October 2017, with
an installed capacity for 60 units of vehicles a
day.
According to the Coscharis boss, the projections
of growth made by his company and other
automakers who responded to the policy by
building assembly plants – some in collaboration
with auto manufacturers from different parts of
the world, have been shattered by lack of
progress and uncertainties in the industry.
He expressed pessimism about recovering the
huge investment he made in the sector in 10
years based on the initial projection of selling 10,
000 vehicles annually. According to him, the
current total yearly sales figure has been far
below 2,000 cars.
According to the Nnewi-born businessman, he
regretted investing more than $50 million {about
N1. 7b} in setting up an assembly plant in Lagos.
“Of course, I regret the investment! Why would I
not regret the investment? From the benefit of
hindsight today, you think it is something that is
waste, but at the same time, it is also premature
to take a conclusive decision, because, till today,
the Federal Government is still hesitant. They
{government} have not said a definite ‘yes’ or
‘no’ to the auto policy.”, he reportedly said.
He, however, restated his belief in the policy
encapsulated in the Nigeria Automotive Industry
Development Plan (NAIDP) that, he said, was
necessary for a viable local auto-manufacturing
sector. The problem, he argued, is in the
lukewarm implementation by government.
Cosmas Maduka made his feelings known while
assessing the NAIDP which took effect about five
years ago on July 1, 2014, and the delay by the
Presidency in assenting to the Fiscal Incentive
and Guarantees Bill that would have given it a
legal framework.

No comments

Open The Blog Post And Comment With Responsive Browsers. i.e Google Chrome.

Disclaimer: Every member is solely responsible for anything that he/she comments.

Powered by Blogger.