Innoson Group, a Nigerian automobile company, says its joining forces with three Chinese firms to invest $1 billion in local production of TV Set-Top boxes in Nigeria.
Chief Innocent Chukwuma, Chairman and Chief Executive Officer of Innoson Group, who disclosed this when he led a delegation comprising from the Innoson Group and the Chinese firms to the Presidential Villa recently.
The Innoson CEO says the Chinese investors will also explore stakes in the Nigeria sector industry.
These Chinese firms, Shangdong Broadcasting Group, Shangdong Cable Interactive Services and Inspur Group – have decided to invest about $1 billion in the Nigerian economy over the next 12-24 months, Chukwuma says.
Giving details about the partnership, the Innoson CEO says the planned investments by the Chinese firms include:
- A credit facility of $300 million for local production and supply of 5-8 million Set-Top Boxes for the Digital Switch-Over in broadcasting in the country to meet a target date of June 2017.
- An investment of $100m to establish technology-based Direct-To-Home Digital Bing Television Stations.
- A further investment of $600m for Smart City CCTV camera and IT solutions for taxation, both using Cloud Computing, and E-Education IT solutions with big data centers in all federal universities and polytechnics in the country.
According to the Chairman of Innoson Group, “every plan to make a success of all these projects have been concluded between our two parties.”
While responding, the Vice President Yemi Osinbajo, who received the delegation, said the timing for this investment is right “as we are at a point that we must engage technological solutions in our development plans” while also noting that the initiative “is bound to yield very good fruits and do very well.”
The VP also noted that it is because of the administration’s commitment to spur manufacturing and local production in the country that the initiative of Innoson Group to work with Chinese partners is being addressed as a “strategic collaboration.”
Osinbajo explained the importance of competition and competitive pricing in such an effort, noting that the Chinese firms must have taken that into consideration as well.
According to him, “we are looking forward to working with you in the next few months to realise the plans that you have laid out.”
Earlier while receiving them, the VP said in the next few years, the Buhari administration would continue to actively pursue a plan for the massive manufacturing and production of goods in the country as much as possible.
Osinbajo said the Federal Government will ally with business interests who can facilitate the plan, adding that “manufacturing in Nigeria is a primary objective of this government. It is a work we intend to do in the next few years to manufacture and produce in Nigeria as much as we can.”
The Deputy Minister of the Communist Party in Shandong Province and Chairman of the Shandong Broadcasting Group, Mr Liu Baoju, and Mr. Huang Gang, Senior Vice President of Inspur Group were among dignitaries in the business delegation at the meeting.