Coscharis Boss regrets investing ₦1.7B on a local vehicle assembly plant in Nigeria

08/29/2019

Posted by: Oluwaseun Solomon

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Popular investor and CEO of Coscharis Group says that he regrets investing ₦1.7Billion on a local vehicle assembly plant in Nigeria. What is the underlying reason behind this? Check below for more details!

Recent reports reaching us here at Naijauto claim that Dr Cosmas Maduka – the President/CEO of Coscharis Group says he regrets investing a huge ₦1.7 billion on a local vehicle assembly plant in Nigeria.

The Coscharis CEO claims that his lamentation is directly resulting from the harsh effects of the Nigerian Federal Government’s hesitation to implement the pending auto policy which is negatively impacting his investment.

Dr-Cosmas-Maduka-President-CEO-of-Coscharis-Group

Dr Cosmas Maduka – President/CEO of Coscharis Group of companies in Nigeria

Dr Maduka Cosmas is by far, one of the biggest investors in the Nigerian automotive industry till date. His company partnered with Ford Motors just a few years back and built a massive local vehicle assembly plant here in Nigeria, on a 14-hectare piece of land in the Awoyaya Area, Lekki-Epe Expr way, Lagos.

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This plant has been inaugurated since October 2017 with 60 units installed capacity of daily vehicle production. Unfortunately, the Coscharis CEO claims that uncertainties and lack of progress have shattered his expected projected growth for this company, just like every other local automaker that had taken a similar step to build assembly plants in Nigeria.

He deeply expressed his regrets and pessimism especially towards recovering his huge ₦1.7B investment, which he initially expected to get back in just 10 years if the plant was selling over 10,000 vehicles per year. But currently, the annual sales figure recorded by his plant has so far been less than 2,000 cars.

Coscharis-Group-and-Ford-Motors-local-vehicle-assembly-plant

The vehicle assembly plant in Lagos by Coscharis Group and Ford Motors has been suffering setbacks till now

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The Nnewi-born Nigerian businessman really expresses his regrets on making such a huge ₦1.7Billion ($50 million) investment in the local auto industry. During a recent interview, Dr Maduka reportedly said;

“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.”

Even though the long-term investor and successful businessman has been addressing both the NAIDP (National Automotive Industry Development) and the Nigerian federal government for quite some time now; he is still showing some light of hope that the local auto industry will get better, especially if the pending auto policies are approved.

Coscharis-boss-and-Ford-rep

The deal with Ford wlll see the Nigerian firm produce and sell 10,000 units per year

We do hope the concerned bodies and the Nigerian government take adequate measures soon to address these issues that are hampering the growth of local automotive industries across the country.

>>> For more updates like this click -> automotive industry updates.

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Oluwaseun Solomon

Oluwaseun Solomon

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Oluwaseun Solomon is a prolific and diligent automobile writer at Naijauto.com. He's also an experienced digital marketer and a creative multimedia developer that specializes in video editing. He currently contributes informative and easy to read articles on topics covering transportation, traffic updates, auto industry updates, and different car reviews.
When Solomon is not writing, you will either find him composing music, editing videos or simply enjoying YouTube "TEDx Talk" videos with a chilled drink :)

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