Innocent Chukwuma, chairman of the Innoson Group of Companies, which includes Innoson Vehicle Manufacturing, Nigeria’s first indigenous automobile manufacturing company, discusses in this interview with Ifeoma Okeke-Korieocha how he would have saved the country money on the contract to procure airport fire trucks and the challenges with his trapped funds in GT Bank and with the Imo State government. Excerpts:
Some fire trucks were recently commissioned by the minister of aviation, and each of these trucks cost N1.2 billion. Some people have raised concerns about the cost. Did anyone in the Aviation Ministry contact you to inquire if you could manufacture them?
No one in the ministry contacted us to find out if we could make the trucks. We are not aware of this. But we know that if they tell us what they want, we will produce it according to the specifications they require. We manufacture according to specifications.
In my research, I found out that the highest capacity water truck you have manufactured is 8,000 water litre capacity as opposed to the 14,000 water litre capacity the aviation minister imported. Would it then mean you were not contacted because you do not have that capacity?
The fire trucks in my factory now only conform to the specifications sent. Trucks are produced according to the requests of customers. We can produce as little as 50 litres capacity and as much as 100,000 litres capacity. It is based on the needs of customers. Once you send us your specifications, we will produce them for you.
No one in the ministry contacted us to find out if we could make the trucks. We are not aware of this. But we know that if they tell us what they want, we will produce it according to the specifications they require.
Nigerians are more interested in the cost of the fire trucks. If you were contacted by the aviation ministry to produce the same specification of trucks, how much would you have charged to manufacture them?
If you wanted me to produce 14,000 litres, I would honestly have done it for a far cheaper price. The sea freight alone for that finished product is very high. The sea freight on each of those trucks costs about $20,000, and this is excluding the price. We haven’t talked about the duties that will also be paid on them or some other miscellaneous items. If they had contacted me, I would have sold it to them at a cheaper rate and given them quality trucks. My trucks will be far better than what they bought. I don’t need to mention the cost, but I would have done it far cheaper. This way, we would save our foreign exchange, which is very important. If they bought each of these trucks for N1.2 billion, the cost in foreign exchange would have been high as well. If they had contacted me, they would not only have saved the foreign exchange, but they would have created job opportunities for Nigerians as well.
Apart from the price advantage of these fire trucks, how does the quality of your fire trucks compare to the ones imported?
I buy the best quality components I use in production. My fire trucks are as standard as the ones produced anywhere in the world, or even better.
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I am aware that during President Goodluck Jonathan’s government, he insisted that government agencies contact you to produce their vehicles. How has this been in President Buhari’s administration?
Some of the government agencies still contact me for their vehicles, but some don’t.
What are some of the major challenges you face in this business?
The major challenge we have now is getting people to support Made-in-Nigeria products. People don’t understand the benefits of supporting Made-in-Nigeria products. If they support these products, then you will be employing more people. When I see youth not engaged, I feel so sad. We can help these youths in our own way just by patronizing local products in Nigeria. When people are employed, insecurity will decrease. So I am pleading with people to support not just my products but every Made-in-Nigeria product. Once you start doing this, more people will be busy. So, let’s keep our youths busy by patronizing Made-in-Nigeria products. If I have more buyers, I will employ more people to ensure I can meet demand.
You did say that some government sectors still patronize you. I would like to know if the aviation ministry patronises your products.
If you go to some airports, you will find out that my vehicles are there. Most of the vehicles in Abuja Airport are my vehicles. So far, Abuja Airport has been supportive. I feel that when others are ready, they will still patronise us. Maybe they are not aware that I can produce fire trucks. I believe if they are aware, they will patronise us. Currently, the vehicles they use are serving them well, and they are happy with them. So I believe if they are aware that I can produce fire trucks, they will buy from me.
I have seen your factory in Anambra and some vehicles you have manufactured. I’m curious to know how many direct and indirect employment opportunities you are creating?
The whole of my factories in Nigeria have 7,400 workers. There are also some indirect jobs I create that I cannot even count.
Let us talk about your LNG and CNG-powered vehicles. How did you come about this, and what was the process like for you?
We were able to do LNG and CNG-powered vehicles, and next on our list are electric vehicles. Because fuel prices keep increasing, the only solution to running your vehicles at an affordable price is to use LNG and CNG vehicles. This is 60 percent cheaper to use than fuel-powered vehicles. For Benin City, 80 percent of their vehicles use CNG and LNG. This is because they have seen the gains and differences. Nobody talks about fuel or diesel again in Benin. They have tried them and understand the difference. So if other states are more informed on the benefits of using LNG and CNG-powered vehicles, they will not go back to fuel and diesel.
How soon should we expect your electric cars?
My electric cars will soon be out of service. I plan to produce the major components for the car in Nigeria. I want to supply other countries, not just Nigeria.
What plans are you making toward achieving the production of electric cars?
We will start production soon. We want to produce the batteries in Nigeria on or before the end of 2023. This way, Nigerians would make their own choice on what they want to use.
Beyond patronage, how do you think the government can assist what you do?
For me, I think patronage is the main thing. People should patronise all local products, not only my vehicles. Patronage will take care of all other things. This way, our youth will be very busy.
I’m aware you have a court case with GT Bank. Has any money been paid to you after the court ruled in your favour?
Guarantee Trust Bank appears to be bigger than the court. I have done my best, and I am still doing everything I can to get my money. However, from the actions of GTB, it is clear that they are bigger than the rule of law. As they keep delaying the payment, the money will accumulate interest. Maybe when they are ready to pay, I’ll take over the bank. They have changed their brand name because of this issue. The Court will decide. I am in court to get them to return the name of the bank to GT Bank. The court has to decide.
On this GT issue, I’d like to know how much exactly is involved?
The money attracts 22 percent interest every month. Before I tell you how much it is today, I’ll need to calculate. The last time I calculated it, two years ago, it was over N40 billion.
Talking about keeping the youth busy, there was a time when you gave out vehicles to those who wanted to drive to make money. Is this initiative still on?
The initiative is still on. People are responding, and people have been given vehicles. This is supposed to run for three years. At the end of three years, it is expected that the payments by installment will be complete. The first batch will soon be through, and another set will be empowered.
Can you give us an estimate of the number of people who responded, and are some people defaulting on payment?
We have not had many defaulters. About 95 percent of those who keyed into the initiative are paying when due. We have our ways of dealing with the remaining five percent that have defaulted. However, the first set will be done by the end of 2023.
I’m aware you have an issue with the Imo State Governor over 200 units of vehicles that were collected but haven’t been paid for. Any update on the issue?
I am in court with the Imo State Governor on this issue. He does not want to pay the money, but I don’t believe that will happen. He has to pay for the vehicles he took.
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