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Panasonic, the Japanese electronics giant, has announced that it would establish an assembling plant in Nigeria for air-conditioners and television sets.

Panasonic’s Managing Director for Middle East and Africa, Shinichi Wakita, said the company is setting up the plant in partnership with SIMS Nigeria Limited, an electronic marketing and distribution company that has operated in the white goods sector for almost three decades.

“Africa is one of the fastest growing economies with a rising consumer class; setting up this manufacturing base in Nigeria is our strategy to deal with the business challenges in this market,” Wakita said at the signing of the partnership.

“We will be working closely with the Nigerian population with an aim to provide products which are ‘locally-fit’ and in accordance with their demands.”

Panasonic targets to produce about 100,000 air-conditioners and 60,000 television sets annually.

Nigeria has Africa’s largest electronics and home appliances market but it is heavily import-dependent. According to a KPMG report, Nigerian households spend around 5% of their budget on household furniture and appliances. White goods imports to Nigeria rose from around $300 million per annum in 2008-2009 to almost $600 million by 2011.

Wakita said Panasonic is positioning to meet the demand of consumers who appreciate good quality products. He said, “Our strategy is not anchored on quantity but rather, our emphasis is on producing quality products that are equally affordable.”

General Manager of SIMS Nigeria, Fab Uzor, said, “We are excited partnering with Panasonic. Many years of operating in the Nigerian market has given us an edge in understanding the psyche of the Nigerian consumer. The Nigerian market is very competitive because of the number of brands that play here.”

SIMS Nigeria markets and distributes electronic products from major brands such as Samsung, Philips, Panasonic, among others.


Chibuike Oguh is Financial Nigeria's Frontier Markets Analyst