The depreciating Naira exchange rate is causing a lot of hazards in the economic sector of Nigeria. From manufacturers to exporters and even petty traders, everyone is not finding this deflation funny. News reaching us says Nigeria’s top car manufacturing and assembling company, Innoson Motors Nig Ltd, has laid off 50% of its staff. This development is due to poor patronage and the harsh economic conditions – courtesy of the rapid fall of Naira value in the exchange market.
According to the report, the automobile company might end up folding completely if the economy does not see the positive change that Nigerians are advocating for. Innoson Motors was founded by Anambra state born entrepreneur, Chief, Dr. Innocent Ifediaso Chukwuma. The company is dedicated to work and strives to satisfy all that comes into their world by making sure customers get the value of their investment.
Dr. Innocent Ifediaso Chukwuma is also the owner of Innoson Plastics. In 2015, the 55-year-old business mogul was listed among 10 Nigerians Who Are Not University Graduates But Are Successful in Their Fields. After his secondary education, he started trading in spare parts under the name Innoson Nigeria Ltd in 1981. His first point of automobile business was with assembling branded motorcycle before he ventured into cars. Innoson IVM Motors which is ranked third after Leventis and Boulos Enterprises in assembling branded motorcycle in the Nigeria.
Unfortunately, the courage of this determined business man is about to be dwindled by the Nigerian Government who has not done anything significant, to bring down the exchange rate of dollar and Naira. The last administration of Dr Goodluck Jonathan had encouraged him by purchasing IVM (Innoson Vehicle Manufacturing) automobiles for use by government functionaries. Ditto for Mr Peter Obi, erstwhile governor of Anambra state.
However, the present Federal administration of President Muhammadu Buhari and the State administration of Chief Willie Obiano have tactically stayed away from IVM automobiles. The Federal Government claims that one of the reasons for allowing the Naira to fall is to encourage indigenous manufacturers, and to reduce the rate of importation.
Annually, billions of Naira is paid to Toyota and other foreign automobile firms for the importation of vehicles for use by government officials. Yet, we preach change. What happens to IVM Motors receiving patronage from high net worth Nigerians, that way, he would employ more Nigerians and the now displaced 50% work force from the company would not be an added liability to the Nigerian labour market.
Meanwhile, as at last week, Naira’s Downfall in Parallel Market was N280 For $1, currently, it has depreciated further to over N350 per $1. Nigerians are calling on President Muhammadu Buhari to take drastic measures to redeem the Nigerian Currency and to save this prime outfit from folding up. The government should also strive to encourage other indigenous manufacturing companies to increase their work force and productivity, which is very key in the growth of the country’s economy as well as the employment status of its citizens.