Chief Executive Officer of Innoson Vehicle Manufacturing Company (IVM), Nnewi in Anambra state, Innocent Chukwuma says high tariff and irregular supply of electricity have thwarted his lofty vision for vehicle production.
Chukwuma closed this during an inspection of facilities at his company by the Programme Development Specialist, World Bank, Mrs Anita Okemmili, in Nnewi on Saturday.
“The high tariff of N43 per second charge has crippled our production capacity,’’ he lamented.
Chukwuma regretted that commercial banks in Nigeria are unable to provide them with loan facilities to support the business.
He therefore called on the World Bank and International Finance Corporation, its private sector subsidiary, to assist them by providing soft loans, to enable the company strengthen its production.
“We are trying to localise many items at subsidised prices. This will enable us to produce vehicles that will easily be affordable by ordinary folks,” he told the World Bank official. He explained that Innoson was working hard to produce cheap cars, noting that the price of cars in Nigeria is “alarming,” with the result that the poor could not afford to buy good cars.
“So, by the time we finalise our expansion plans, individuals, corporate bodies and governments can afford brand new quality cars,’’ Chukwuma said.
Okemmili, said the World Bank desired to create facilities to promote economic development through partnerships with Anambra State government. She explained that the purpose of her visit was to understand major challenges facing the private sector in the state.
The visit was also to enable the World Bank to come up with proper potential solutions to promote economic development in the State, she said.
“We have observed the massive expansion ongoing at Innoson Company as workers were busy constructing and testing completed vehicles ready for the show rooms. After the study, we will put it into country Private Sector Diagnostic System, then, engage the private sector players such as Innoson to bring about some changes,” Okemmili said.
“We are coming back in June this year to implement the action. We promise to reflect the identified problems in our report for a better plan to promote the private sector output,’’ she added.
Okemmili commended Innoson Company for creating massive employment opportunities for the youths, which according to her, is the cardinal pillar for any meaningful economic growth in a country.
Managing Director, Anambra State Investment Promotion and Protection Agency (ANSIPPA), Jide Ikeakor, said the state government had various policy formulations that would aid private sector development in the state.
Ikeakor noted that the major challenges facing the private sector were epileptic power supply and lack of raw materials, saying these had posed threats to their production capacity.
He recalled that through the partnership with the Government and Innoson Company, many youths had been trained, as no fewer than 300 youths were undergoing training courses at the company.
Emmanuel Ndukuba, Awka
