Automotive Stakeholders Fault FG-VW German MoU
The nation’s automotive stakeholders have advised the federal government to be careful with the Memorandum of Understanding (MoU) it signed recently with Volkswagen AG (VW) of Germany, saying that MoU is fraught with danger that may be inimical to the economic interest of Nigeria.
They said that it would be unthinkable that VW would construct a vehicle assembly plant in Nigeria when it has already reached an agreement with the government of Ghana to set up one in that West African country.
According to them, the real intention of the MoU is to make Nigeria a dumping ground for VW products assembled in Ghana to the detriment of the country.
They advised the federal government to go back the archive to review a similar agreement General Yakubu Gowon’s administration signed with the VW and which led to the establishment of Volkswagen of Nigeria Limited and an assembly plant in 1975, in order not to plunge the nation into economic disaster
It would be recalled that penultimate Friday,
The federal government and Volkswagen recently signed an MoU to develop a joint vision for an automotive hub that would cover the West Coast of Africa.
The MoU, which was sequel to the recent visit of Chancellor of Germany, Angela Merkel to the country, was signed in the presence of both the guest and President Muhammadu Buhari, in Abuja. The Head of Volkswagen Sub-Saharan Region, Thomas Schaefer, signed the agreement on behalf of Volkswagen with the Nigeria’s Minister of Industry, Trade and Investment, Dr. Okey Enelamah.
Reacting to the news on the MoU, one of the stakeholders who does not want his name in the print, said: “From what I have read in the media about the MoU, it is not clear what the Germans wants in West Africa. It appears VW of Germany is up to something in West Africa. They did not say anything about VON. VON Automobile does not have VW as shareholder because it acquired 40 per cent and 11 per cent equity holding of VW and BHF bank both of Germany.
The current owners Barbedos Motors also acquired Federal Government’s 35 per cent and Mandilas Motors combined 10 per cent ownership. What is left as Nigerian interest in VON
Automobiles is Lagos State Government’s four per cent.”
According to him, “the issue therefore is: Is VW buying back its shares in VON Automobile or setting up a new plant? Is FG reversing her privatisation policy by making fresh investment in what is ordinarily private sector activity? It would have been best if government facilitates partnership between VW and Nigerian investors in a new assembly plant.