by Moses Akaigwe
Innoson Group Chairman, Dr. Innocent Chukwuma, CON, has said that President Bola Ahmed Tinubu deserves commendations for being courageous enough to stop government subsidy on the importation of fuel.
The industrialist whose Innoson Vehicles Manufacturing Company Ltd (IVM) in 2021 pioneered the production of vehicles with engines that run on CNG in Nigeria, said the benefits of using autogas far outweigh those of petrol and diesel.
The auto manufacturer spoke to visiting motoring journalists at the factory in Nnewi, Anambra state, on Tuesday
The Innoson Chairman said in the interview: “President Bola Tinubu has done Nigeria a lot of good by removing subsidy on fuel and introducing CNG. When Nigerians understand what CNG is all about and the huge benefits it brings to the economy, they will be happy with the government.
He listed some of the advantages has over petrol and diesel to include cheaper cost per kilometre, low maintenance costs, quick return on investment for transporters, and environmental friendliness.
“I started the production of CNG vehicles about two years ago, long before it was formally introduced following the removal of fuel subsidy on May 29 by the President. As at the time the government announced the removal of subsidy on petrol and the talk about CNG as an alternative commenced, I already had up to 100 units of CNG-powered vehicles on ground; parked here in the factory. It happened that way because I knew that one day, subsidy would be removed. I have vehicles that are powered by CNG in all the IVM models, and I also convert for people who are driving Innoson. I want to give them the advantage first because they are my customers.”
Innoson Vehicle Manufacturing Company, he disclosed, currently converts IVM vehicles running on petrol to CNG for its customers, even as he said he is aware that the Federal Government is bringing conversion kits through some importers.”
He hinted that IVM has embarked on the construction of a massive new plant at Umuezena part of Nnewi, which will occupy a total of 400, 000 square-meter land space: One of the factory-buildings being constructed there alone is 40, 000 square meters. There will be three which brings the total to 120,000 square meters.
Chief Chukwuma also spoke on the difficulties manufacturers like him encounter in accessing foreign exchange, saying, “I am a manufacturer. We are in a better position than importers. This is because what we import is not everything we are using in the manufacturing of our vehicles.
“So, we import a few items and use local materials to complete our needs. But, importers of ready made goods overseas import 100 per cent, which means that their forex requirements are higher. So I can say that foreign exchange depends on a number of things; sometimes, we do some export and get foreign exchange. Government allocation of foreign exchange is no longer working.”
Dr. Chukwuma gave an insight into the recent deal with the Abia state government for the supply of vehicles for the use of top functionaries.
His acount: “What happened was that they needed 100 vehicles and I supplied 80. I told them that the remaining 20 would be ready in 14 days, but they said they needed them immediately. Then I told them they could buy from shops; that I am a manufacturer and not a trader. They said they needed the 20 units immediately; that it was for security purposes. I went to them to tell them like that so that people will understand.
“The governor is one of my best friends, even before he became the governor. He doesn’t joke with my products, and that is why if you go to Abia state today, you will see my vehicles everywhere. Even the governor himself is using IVM.”
You also have issues with the Imo State Government. Has it been resolved? “No it hasn’t been resolved. They just seized the money for almost three years now. The amount is N2. 6 billion for 150 vehicles I supplied to them. Today, the money has gone up to N7 billion. I am in the court with them.”
The Innoson Chairman bemoaned the impact of lack of indigenous shipping lines on the export of Innoson vehicles to other African countries bearing in mind that his vision is to see his products in all parts of the continent.
“I have got up to 15 contracts from different countries outside Nigeria. The reason we don’t export from Nigeria to other African countries as often as we want, is because Africa does not have shipping lines that go round Africa. “Sometimes, when you export to Ghana, the vessel will first carry the containers to Europe before going to Ghana. But if we have shipping lines that go round Africa, African countries have a lot of things that they can export to each other. But if you watch, getting something from other African countries is difficult. Unless you go to Cotonou to carry it, it is not easy to come in. If African countries want inter-Africa trade to grow, they should have vessels going round Africa. Without that, trading among African countries will be difficult.
“Meanwhile, I tried to service the 15 contracts but I found out what their problems were, which is unavailability of shipping lines to carry the consignments for them. When they run into that difficulty today, they would not come back to you tomorrow. For instance, some of the countries I have exported vehicles to, include: Ghana, Sierra Leone, Senegal and others.
On what motivated him to locate Innoson Vehicle Plant in Nnewi, he remarked: “It is not that I looked inwards. The fact is that I don’t like crowds. I think I like where traffic will not be holding me on the road so much. That was why I decided to be here in Nnewi and Enugu. Other places like Lagos and Onitsha are filled up. So I came down to Nnewi so that it would be easy for me to coordinate. Right now, I have two factories in Nnewi and accessing them is very easy for me. But if it is in Surulere or Apapa in Lagos, will you go? After all, there is market everywhere.
“On how my people in Nnewi have felt the presence of my auto factory, I will say that locating this factory here is one of the good things that has happened to the South-Eastern part of Nigeria. It is bringing a lot of things here.
“For example, when the Federal Government decided to build industrial hubs for the auto industry, they located one in Lagos, another in Kaduna and one here in Nnewi, because of this factory. In addition, it provided employment. When I finish constructing the new factory I am now building in Nnewi, I will employ another 2,000 workers and I prefer to employ people who are at home here. It is one of the good things that have happened to the people.”
The manufacturer, who started life small as a trader in motorcycle parts, and later as a dealer in motorcycles themselves, and much later as an importer of same, before expanding officially to vehicle production in 2010, was also asked to comment on the secret of the business success of Nnewi people.
Nnewi people, starting from origin have the keys of business. Remember the late Louis Odumegwu Ojukwu, who was the leader in Nigeria even before the war. Most of our people are business people and they are used to business. Each town has something unique to them and in the case of Nnewi business is their uniqueness.