Innoson Vehicle Manufacturing (IVM), Nigeria’s leading automobile manufacturer, has raised concerns over the unpaid balance for vehicles supplied to the Imo State government under Governor Hope Uzodinma. According to the company, the Imo State government still owes over $7 million for 150 vehicles delivered since 2021, a debt that, due to exchange rate fluctuations, is now worth just $1.5 million.
Cornel Osigwe, Head of Corporate Communications at Innoson Group, voiced the company’s concerns on Facebook, emphasizing the financial strain this outstanding debt has caused. He pointed out that despite the challenging economic climate in Nigeria and significant amounts owed, Innoson Vehicles has managed to stay operational.
“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 the Naira, if the money is paid today, it will now be worth $1.5 million,” Osigwe stated.
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This situation follows earlier reports from August 2022, where Innoson Motors revealed that the Imo State government owed the company approximately N2.5 billion for the supplied vehicles and parts. Innoson Motors took legal action, filing a lawsuit against the state government at an Anambra State High Court to recover the unpaid debt.
While Innoson Motors continues to stand by its claims, the Imo State government has denied the allegations, labeling them as “distasteful” and accusing the company of engaging in cheap blackmail. The state government stated that it had purchased vehicles worth over N5 billion and had already paid N3.5 billion, leaving a balance of N1.5 billion, which they claim is significantly less than what Innoson asserts.
Innoson’s complaint comes at a time when many businesses are grappling with Nigeria’s unstable economy, particularly the devaluation of the Naira. The company has emphasized the need to address how they have managed to survive these economic conditions despite heavy debts being owed to them.
