Nigeria’s foremost automobile manufacturer, Innoson Vehicle Manufacturing (IVM), has expressed concern over the failure of the Imo State Government, led by Governor Hope Uzodinma, to settle a significant debt. The debt stems from the supply of 150 vehicles to the state government in 2021, valued at over $7 million at the time of delivery.
Cornel Osigwe, Head of Corporate Communications and Affairs for Innoson Group, took to Facebook to highlight the company’s frustration. He noted that due to currency devaluation, the value of the amount owed has significantly decreased, and if paid today, it would be equivalent to only $1.5 million.
“Lest we forget, about 150 vehicles supplied to the Imo State Government under the leadership of Hope Uzodinma, valued at over $7 million, remain unpaid. Based on the devaluation of our naira, if the money is paid today, it will now be worth $1.5 million,” Osigwe stated. He emphasised that the focus should shift to how Innoson Vehicles has managed to remain operational despite the harsh economic climate and the substantial debts owed to the company.
This isn’t the first time Innoson Group has publicly addressed the issue. In August 2022, the company reiterated its claim that the Imo State Government owed N2.5 billion for the vehicles supplied. The company has since filed a lawsuit in an Anambra State High Court, demanding payment for the debt.
In response, the Imo State Government has denied the allegations, describing them as “distasteful” and accusing Innoson Motors of engaging in “cheap blackmail.” The government claims it purchased vehicles worth over N5 billion and has already paid N3.5 billion, disputing the outstanding balance as portrayed by the company.
As the legal battle continues, this situation has raised concerns about the financial relationships between the government and local industries.
