By Moses Akaigwe
Volkswagen has, once again, indicated interest to set up an assembly facility in Nigeria – a significant step towards making the country a hub for automotive manufacturing in Africa.
To this end, a delegation from Volkswagen Group Africa in Kariega, South Africa, led by Michael Petrie, Head of Strategic Plant Development; and Chrystal Christian, Head of Sub-Saharan Africa Operations. visited Nigeria on Thursday, April 3.
They held talks in Abuja with the Federal Government to explore the possibility of expanding Volkswagen’s operations in Nigeria, both in the short and long term.
The meeting held at the Bank of Industry (BOI) office, came nearly seven years after Volkswagen signed Memoranda of Understanding (MoU) with the governments of Nigeria and Ghana to set up assembly plants in both countries, in 2018.
Addressing the bilateral gathering, Michael Petrie expressed Voljswagen’s strong desire to re-enter the Nigerian market, citing the historical legacy of the brand in the country as an encouragement.
He reiterated Volkswagen’s long-term vision for establishing a robust manufacturing presence in Nigeria.
Petrie explained that, while short-term partnerships were a starting point, the ultimate goal was to build an automotive ecosystem in Nigeria similar to successful models in countries like Malaysia, India, and North Africa.
Volkswagen Group Africa’s plans include building a strong manufacturing footprint on the continent, with Nigeria as a key starting point for further expansion.
Petrie expressed optimism about the future, noting that the potential in Nigeria is enormous, and Volkswagen is committed to identifying suitable partners and moving forward with the project as soon as possible.
Welcoming the Volkswagen delegation, the Minister of State for Industry, Senator John Owan, reiterated the Nigerian government’s commitment to developing the country’s automotive industry.
He stressed that Nigeria’s strategic position in Africa, coupled with the saturation of markets in South Africa and Morocco, made it an ideal location for the automotive industry to thrive.
Senator Owan also underscored the importance of having the right policy frameworks and local partnerships to facilitate the establishment of manufacturing operations.
He expressed confidence that the government government of Nigeria is already on the right path in creating favorable conditions for such investments.
In his remarks,,the Director General of the National Automotive Design and Development Council (NADDC), Mr. Oluwemimo Joseph Osanipin, described Volkswagen as one of the world’s leading Original Equipment Manufacturers (OEMs). which played a key role in the establishment of the African Association of Automotive Manufacturers.
The DG noted that discussions with Volkswagen have been ongoing for some time regarding the possibility of establishing operations in Nigeria to assemble and produce Volkswagen vehicles locally.
The visit, he stated, is a continuation of those talks, with Volkswagen representatives seeking to explore opportunities for local partnerships.
The DG indicated that the next steps depend on the outcome of these discussions, particularly in securing the right local partners, stress ING “Once the feasibility of these partnerships is assessed, further plans will be developed” he said.
The discussions marked a significant step towards realising Nigeria’s potential as a major player in Africa’s automotive industry.
Both parties agreed to continue exploring avenues for collaboration.
Following the agreements signed with Nigeria and Ghana during the visit of former Chancellor, Angela Merkel in 2018, the latter in 2020 commenced the assembly of some car models at a new Volkswagen plant in Accra.
But, the MoU with Nigeria is yet to be implemented due to a number of challenges, including the lack of an auto policy with legal support.