Domestication of auto makers’ factories will leapfrog national economy, expert says

 

A financial expert,  Femi Awoyemi, on Friday urged the Federal Government to sustain its policy of attracting more foreign direct investment (FDI) into the nation’s auto sector.

The expert said this against the backdrop of the announcement by Honda Motors Company Ltd to commence local assemblage of its Accord Sedan car.

Awoyemi, the Chief Executive Officer, Proshares Nigeria Ltd, said that youth unemployment in the country would drastically drop with Honda’s actualisation of its pronouncement.

He said that more FDI inflows would take the local automobile sector to the next level.

Awoyemi said the current drive by the Federal Government to encourage more international auto makers to site factories in the country would prosper the domestic economy in all ramifications.

Honda Motor Company has proposed to begin the assemblage of one of its auto products in Nigeria soon. The proposal to site the car plant in the country would be the first assembly plant by the auto firm in Africa.

Another auto company, Volkswagen, had also commenced the assemblage of its products in Nigeria this July, some 25 years after it stopped operations in the country.

According to Awoyemi, the entry of more auto companies setting up assembly plants in the country will boost the earnings of local investors and reduce automobile spare-parts importation.

“It is not an understatement that Nigeria is one of the preferred destinations of automobile producers in Africa to site their factories.

“Nigeria has a large market and this will translate to increased earnings, even to those bringing in these investments.

“Our population, in relation to a large proportion of Nigerians owning their personal cars, in economic terms, will run in trillions of naira,’’ he said.
Awoyemi noted that Nigeria’s competitiveness in automobile production was bound to improve with many auto producers domiciled locally.

“Nigerians will be the ones who will benefit the most from the emerging trends in the establishment of local automobile assembly plants.

“More of our young people will be gainfully employed.

“Assembling cars locally is a cost-saving measure for any producer and for the nation at large.

“There is no doubt that our Federal Government needs to be praised for attracting these mega auto makers into our economy,’’ Awoyemi added.

(NAN)