HomePoliticsPoliticsContract Breach: Abia Assembly Mulls Canceling Innoson Deal

Contract Breach: Abia Assembly Mulls Canceling Innoson Deal

Listen to article

A dispute is brewing between the Abia House of Assembly and Innoson Vehicles Manufacturing Ltd, with lawmakers threatening to terminate their contract over allegations that the company has failed to meet its obligations to provide vehicles for all members.

On Thursday, Rt. Hon. Emmanuel Emeruwa, Speaker of the House, engaged with the media in Umuahia, unveiling significant developments as the 8th Assembly celebrated its one-year anniversary.

Speaker Emmanuel Emeruwa voiced disappointment that lawmakers were still awaiting their vehicles, a year after taking office. He attributed the preference for Innoson vehicles to Governor Alex Otti’s push for homegrown products, but lamented that despite full payment, Innoson had defaulted on delivery over 10 times.

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,”

As the 8th Assembly celebrated its first year, Speaker Emeruwa shared an impressive list of accomplishments, including the passage of five significant bills. The House further demonstrated its productivity through 40 resolutions, careful review of 46 petitions, and thoughtful debate on 55 motions.

The Speaker drew attention to the Assembly’s high energy and dedication, predicting an even more impactful performance in the coming year. He also acknowledged the chamber’s peaceful coexistence and its productive partnership with the Executive, a testament to effective governance.

The government of Abia state entered a partnership with Innoson Motors where it purchased most of the vehicles used by the state’s government officials- a move aimed at promoting local production in the auto industry.

Read also: Innoson Working On Official Vehicles For Us – Abia Lawmakers

The partnership led the Governor of Abia state, Dr. Alex Otti to ask the Chairman of the company to establish another vehicle manufacturing plant in the state.

Innoson vehicles usually generate the bulk of their revenue from contracts to governments and corporate organisations rather than B2C. The company since the administration of President Buhari has enjoyed significant federal government support through purchases of vehicles for Ministries and government agencies. Even the military is not left out as the Army has made notable purchases from the company.

The company’s export footprint has expanded across Africa, with successful sales to several governments, notably Sierra Leone, showcasing Innoson’s capability to meet the needs of international clients.

The Eastern Updates 

Most Popular

Recent Comments