Innoson Fails to Deliver, Abia Assembly Threatens to Cancel Contract

Abia House of Assembly threatens to cancel contract with Innoson Vehicles over failure to deliver lawmakers' official vehicles despite full payment. Speaker Emeruwa gives 15-day ultimatum for performance or refund. Meanwhile, Governor Alex Otti encourages Innoson to establish additional manufacturing plant in Abia state to boost local economy.

The Abia House of Assembly has threatened to terminate its contract with Innoson Vehicles Manufacturing Ltd due to the company's alleged failure to supply vehicles for all lawmakers as agreed. This announcement was made by the Speaker of the House, Rt Hon. Emmanuel Emeruwa, during a media briefing on Thursday, June 13, in Umuahia, marking the first anniversary of the 8th Assembly.

Speaker Emeruwa expressed his disappointment that, despite being inaugurated a year ago, members of the House were yet to receive their official vehicles. He attributed the choice of Innoson vehicles to Governor Alex Otti's initiative to promote local products. 

However, Emeruwa lamented that Innoson had failed to deliver the vehicles on over 10 occasions, despite receiving full payment for their production. This failure has led to the threat of contract cancellation by the Abia House of Assembly.

He stated, “So far, Innoson has not been able to produce or perform its own side of the agreement. At this point, we are on the verge of terminating that contract and asking for our money back if he doesn't perform within the next 15 days. This house is very serious about it and they cannot continue pacifying us after one year.”

Governor Dr. Alex Otti, as part of the collaboration, encouraged the Chairman of Innoson Motors to consider establishing an additional vehicle manufacturing plant in Abia state. This move would not only boost the local economy but also create jobs and stimulate growth in the region.

Innoson Motors' business model relies heavily on contracts with governments and corporate entities, rather than direct consumer sales. The company has thrived since President Buhari's administration, receiving significant support from the federal government. The government regularly procures vehicles for various ministries, agencies, and even the military, including substantial purchases by the Nigerian Army.

Innoson Motors has also expanded its market beyond Nigeria, securing sales with other sovereign governments in Africa. Notably, the company has made a significant sale to the government of Sierra Leone, demonstrating its growing presence in the international market. This expansion has contributed to the company's revenue growth and solidified its position as a leading vehicle manufacturer in Africa.