Consumer electronics manufacturer, Samsung Corporation, is keenly considering establishing a mobile phone manufacturing plant in Nigeria in no distant time.
Brovo Kim, managing director of Samsung Electronics, West Africa, who made this known on Thursday, said the sheer size of the Nigerian market was enough incentive for any foreign handset maker to set up a phone factory, but added that there were critical drawbacks hindering such moves.
“We have well established plants where we assemble electronics such as air-conditioners, television and refrigerators. We are seriously considering setting up a plant for mobile phones. But the problem is that there are a number of micro components involved in the assembly of mobile phones. The process of making phones, especially smart phones is very complex. We will never rule out the possibility of a plant in Nigeria”, Kim said.
Last year, Omobola Johnson, minister of communications technology, had proclaimed that Nigeria’s competitive telecommunications market and its attendant potentials were viable grounds for phone makers to establish handset factories in the country.
Analysts, however reports that Nigeria’s poor business environment, manifest by epileptic power supply, absence of proper intellectual property (IP) and the dearth of public infrastructure remain critical drawbacks discouraging investment in phone plants.
Prospective financiers and investors, according to the analysts, are more often than not apprehensive that their investments could be negated by these barriers.