Roxettes Group is considering the relocation of its automotive plant, paint and chemical subsidiaries, and other operations from the Southeast to Lagos.
Sources close to the company’s management confirmed this to Nairametrics on Saturday.
The group’s subsidiaries include Roxettes Motors (automotive assembly), Roxettes Chemical Industries Ltd, and RoxyCarb (paint and raw materials), all currently based in Abia and Enugu States.
The move comes amid reported persistent logistics bottlenecks, rising freight costs, recurring sit-at-home exercises, and broader security disruptions in the Southeast, which have slowed production and disrupted supply chains.
The potential move is expected to place the facilities in Lagos, near seaports, financial institutions, and export infrastructure, though discussions remain at a preliminary stage.
“The discussions are still at a feasibility stage, but management is increasingly concerned about the cumulative impact of port congestion, logistical inefficiencies, restricted working days, and security challenges across the Southeast on sustained industrial operations,” one of the sources told Nairametrics.
Consultations with investors
Although the Chairman/CEO, Dr. Kaycee Orji, has not publicly confirmed the plans, consultations with international investors and technical partners are understood to be ongoing.
Nairametrics understands that the review covers the Roxettes Motors assembly plant in Obuaku, Abia State, as well as its paint and raw materials subsidiaries in Enugu State.
The sources also indicated there is uncertainty over the imported CNG production and processing equipment, originally meant for installation at the Obuaku Industrial Zone in Abia State.
They are unsure if this will remain in the Southeast or be redirected to Lagos.
The potential relocation is also expected to affect the group’s chemical and paint subsidiaries, which currently operate in Enugu State and supply essential inputs to Nigeria’s automotive and manufacturing industries.
What you should know
In recent years, some businesses have reportedly left the Southeast due to insecurity and operational challenges.
- For example, in a 2024 interview with BBC Igbo, businessman and socialite Pascal Okechukwu, popularly known as Cubana Chief Priest, revealed why he moved his business interests from the Southeast.
- He explained that the fear of kidnapping and attacks had driven away customers from the region, prompting him to relocate. He now operates various businesses, including clubs, restaurants, and other interests.
Reported cases of kidnapping, along with recurring sit-at-home exercises, are believed to have at times disrupted business operations in parts of the Southeast, posing challenges for some entrepreneurs and affecting regular commercial activity.