A major Vehicle assembly plant in Nigeria, the Innoson Vehicle Manufacturing (IVM) is shutting production due to the harsh economy and a lack of foreign exchange.
Innoson chairman Innocent Chukwuma said workers have already been sent home because of a lack of parts from Japan, China and Germany, which account for much of the content of the vehicles they produce.
According to him, production had stopped “as we are waiting for the imported items for which there is a forex issue.”
“I believe they are doing something but if they can’t do anything we’ll lay off some workers,” he added.
Launched in 2010, IVM last year raised its annual production target for 2016 from 4,000 to 6,000 vehicles due to a “Made in Nigeria” campaign that generated strong sales to the police, state agencies and churches.
Those ambitions are now looking shaky if promises of government assistance fail to materialise, Chukwuma said.
-Reuters
Wise decision…
If something is not done quickly, I am afraid what will become of soo many businesses and workers in this country! Buhari should atleast seek solution to this economic menace before people start becoming inhumane
The reason why some companies are sacking is due to the well known fact that Naija is trying to produce locally.However the government policy of not pegging the Naira against dollar by allowing market forces will not only make it difficult to get dollar but with a ripple effect of a soaring cost of goods that are imported into the country.These means the ‘cost of Naira’ on imported goods will be astronomical except the government is making swift and concerted efforts to arrest the situation.A friend of mine in aviation told me aero let off most of her staffs yesterday..I hope the info is not genuine though cos it would cause untold pressure to an already over-populated job market.I pray the situation is arrested in a blink!
Buhari regime will run this country to the ground. More companies are gonna lay off more staff due to this bad economy.