VOLKSWAGEN (VW) was in talks with the Nigerian government to establish an automotive assembly plant in the country in December, Trade and Investment Minister Olusegun Aganga said on Tuesday.
At least 22 vehicle companies were discussing setting up operations in Africa’s largest economy, bolstered by its year-old automotive policy, Aganga said. VW was not available for comment.
“You can’t go into auto assembly without having a clear policy for the next 10 years,” Aganga said in an interview that would be aired at the beginning of October.
Nigeria’s automotive policy increased duties on imported vehicles to boost domestic manufacturing, which represents less than 10 percent of gross domestic product, according to Nigeria’s National Bureau of Statistics.
Vehicle manufacturers from Japan’s Toyota Motor to Seoul-based Hyundai Motor and India’s Tata Motors had shown interest in investing in Nigeria, Aganga said in February.
Carlos Ghosn, the chief executive of Nissan Motor, which started assembling cars in Nigeria this year, said in January demand in Africa’s most-populous nation was as high as 3 million cars a year.
Other government policies had attracted planned investments of at least $16 billion (R178bn) into petroleum products, petrochemicals, methanol and fertiliser and a minimum of $50bn in the power sector, Aganga said.
“All our policies now are backed by law,” the minister said. “Elections or no elections it’s business as usual.”
Nigeria is scheduled to hold presidential elections on February 14. – Bloomberg