A financial expert, Mr Godwin Anono, on Thursday in Lagos urged the Federal Government to sustain its relationship with automobile manufacturers to develop its local potential.

Anono, Chairman, Nigeria Professional Shareholders Association, said such relationship was imperative to fast track government’s effort in local vehicle manufacturing in the country and reduce capital flight.

He told the News Agency of Nigeria (NAN) that indigenous manufacturing of auto spare parts would amount to an expansion of the nation’s economic base.

Anono said the commencement of the assemblage of cars by Volkswagen after 25 years of inactivity in the country was highly commendable.

According to him, more joint venture agreements with international car producers will go a long way to develop local capacity.

NAN reports that the Federal Government days ago revived its joint venture contract with Volkswagen, a German company, 25 years after the car manufacturer closed shop in the country.

``Volkswagen’s re-entry into Nigeria’s auto industry will see it focus on assemblage of cars again which it did between the 1970 and 1990 before it stopped operating.

``The commencement of automobile assembling in our country is laudable.

``That singular move alone will cause drastic reduction in foreign exchange expended on importation of new and fairly used vehicles.

``Local assembling of cars will be a cost saving measure and will lead to technology transfer to our advantage.

``We cannot underrate the value of the policy to the management of our unemployment situation,’’ he told NAN.

He noted that assemblage of cars locally would improve Nigeria’s pride, prestige and respect before the international community.

Anono added that the nation’s Gross Domestic Product (GDP) would shoot up astronomically if more auto manufacturers operated nationally.

``Nigeria should be able to boast of engaging auto companies in a constructive way nationally in such a manner that will increase our competiveness on the global space,’’ he said. (NAN)