Innoson Vehicle Manufacturing puts up the shutters due to economic recession

Why did Innoson Vehicle Manufacturing stop their production of vehicles for police, state agencies and churches? What became a reason for bad economic situation in the company? Read the article to learn the latest news about the largest internal company in Nigeria.

Innoson Vehicle Manufacturing

The main internal company on assembly of vehicles, Innoson Vehicle Manufacturing, declared that it was closed because of the current complicated economic recession. Innoson Vehicle Manufacturing (IVM) said that it can't buy imported automobile components any more. According to them, the problem, which left their vehicles without engines, is equal to all problems facing Nigeria – emergence of Muhammadu Buhari, who led administration and caused much deterioration in economy.

Because of sharp recession in prices of oil, an economic situation of the country and the relation of dollar to naira has worsened very strongly. It became characteristically for the country – to hear about the companies, small and average industries of different scale as it becomes harder and harder not to lag behind the economic facts in the country.

READ ALSO: What is the meaning of scale of preference in economics

economic recession definition

According to the company, their wellbeing completely depends on GDP. However, the economy has gone to its first economic recession definition in 25 years in the second quarter, having decreased by 2.06 percent after reduction for 0.36 percent for the first three months of year. The chairman of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma said: ‘Production has stopped as we wait for the imported points, which shortage is suffered by Forex. I believe that they do something, but there is no advantage in it. It is possible to tell, that there are more minuses as they dismiss some useful workers’.

Opened in 2010, IVM last year has lifted the annual production task from 4,000 to 6,000 vehicles for 2016. The Nigeria company has made a huge number of sales of police, state agencies and churches. Bad condition of industrial sector is a big blow to reputation of President Muhammadu Buhari, who fought for saving Nigeria from dependence on sales of crude oil, which make 70 percent of the government income.

Your comment
Add image

By posting your comment, you agree to the privacy policy and terms of service.