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.



Source:

https://autojosh.com/i-regret-investing-n1-7billion-on-vehicle-assembly-plant-coscharis-boss/

D govt wants ppl to invest in other sectors of d economy and wants Nigerians to patronize made in Nigeria but yet it's policies and d business environment in d country will wreck any investment.. Now imagine one of d biggest investor's in d auto sector complaining.. What is d hope for prospective investors and potential start-ups.. Dis govt is jus a buzzkill for innovation and investments period

You are only being business oriented. Businesses are all about being bold and courageous to take risk

If Nigerians can be groaning, what do you expect foreign investors?

Stifling business environment. They are always quick to shout come and invest,,,, come and invest. But when it's time to set enabling environment for the growth of the industry, they will remember that they may not be the direct beneficiary through fraudulent activities and you see them dragging feet.
Those that invested in power are also regretting it.

"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."

So sad the government is not proactive, most useful government are fast to implement policies that will endear and help industrialist to excel but nay not our next level government who are more concerned about RUGA .
Lemme catch the angel that select Nigeria for me first

And if it were gainful, you wouldn't have share the credit with anyone, Sir

N1.7billion is small for a successful vehicle plants.

The ones you gain before nko?

In summary, osama buhari has refused to enforce implementation d auto industry bill started in the glory days of GEJ.

Whose fault then

the yams he has been eating all these while from inflated car supplies to government (e.g oduah) taken back

Another thing Cosmos didn't consider is that majority of Nigerians can't afford brand new cars.

1.7 billion just like that...I just need to invest 1 % of that money to change my life forever

Very unfortunate.

The number one problem of this country is the incompetent leaders that are bereft of ideas to move this country forward...

miteolu:
N1.7billion is small for a successful vehicle plants.

true,global standards that Naira sign would be in dollars.

Chiefochiefo:
The ones you gain before nko?

Was he the only one gaining before, is he not providing thousands of jobs and employment for people.

Very useless ugly wicked broke igbo man and Igbos supporter.

Nonsense

People get money for this country oh

$50m is more than 1.7 billion naira

I have passion for pig farm but i don't have money, just 250k for the pig ang feeding for one year.

nedu2000:
Another thing Cosmos didn't consider is that majority of Nigerians can't afford brand new cars.

Are you minding him.

This present government derives joy in disaster.

But why will you build it at lekki...

We have Enugu, Imo state or even anambra state to do that....

I will prefer you shift it to Imo state, so that guys go dey see food chop.

Anyway buhari is a disaster.

publicsensor:
And if it were gainful, you wouldn't have share the credit with anyone, Sir

do you understand that this venture will create so many employment opportunities for the masses?

Nigeria matter.

If Cosmos can complain.













I will not complain.

If it's cow business...

Epele