More reactions have continued to trail this week’s romance and automatic ticket given to Korean auto giant, Hyundai Corporation by the presidency to establish car assembly plant in Nigeria.
Whereas some Nigerians welcomed the development, many interpreted the offer as a way of squeezing the growth and expansion chances of only surviving indigenous auto maker, Innoson Vehicle manufacturing (IVM), Nnewi, Anambra State.
Few weeks ago, there was an unconfirmed social media reports that IVM had been ordered by forces at the Presidency to either relocate to Northern Nigeria or Western Nigeria before it would be assisted by the government or risk being shut down if it continues to produce in Eastern Nigeria.
Though the auto giant was quick to issue a denial statement that it received such a threat, analysts are beginning to decipher from the latest turn of events regarding the easy access to the Nigerian market given to Hyundai as a possible fallout of the denied report after all.
Business Hilights recalls that Hyundai Engineering Company Limited said on Tuesday that it was on the verge of setting up a car plant in Nigeria even though it has kept the target location of the plant secret.
However, there are strong indication that Federal Government may be trading the entry of the Korean auto group with a yet to be unveiled deal to invest in the rehabilitation of the country’s comatose petroleum refineries.
Though President/Chief Executive Officer of Hyundai Engineering, Mr Chang Hag Kim, stated pointed to the readiness of his group to invest in Nigeria’s moribund refineries during a visit to the President at the State House, Abuja, it was not yet clear the nature of the understanding to be sealed regarding the refineries.
Observers say the way and manner the government is flying refinery repair assurances with several international companies has gotten to a limit when Nigerians will begin to lose faith in the seriousness of the government in really fixing the refineries.
For instance, earlier in the second quarter, there were comments by the government that Saudi Arabia’s Aramco is coming to fix the refineries. Few weeks ago, the same government told Nigerians that Russian firm is coming for the same refineries and now, Hyundia.
Though Nigerians are yet to clear understand the exact target investment of the Korean group, but responding to Buhari’s address, Hag Kim said his firm was ready to invest in the Nigerian economy, saying “We have been building refineries worldwide.
“We have the biggest in South Korea, with 650, 000 barrels per day capacity. We are also in Venezuela, Iraq, and many other places. We will be glad to contribute our quota in Nigeria,” the Hyundai CEO intoned.
