Public and private organisations are expected to emulate the partnership between the Nigerian Air Force (NAF) and Innosons Motors for the manufacture of spare parts for fighter jets so the country can meet its defence needs.
Correspondent SAM NWOKORO examines the economic value of the patriotic deal to national development.
At these times of reconstructing national ethos to advance especially industry and technology, the partnership between the NAF and Innoson Motors is good for the change agenda of President Muhammadu Buhari.
The deal heeds calls long made for Nigeria to break loose from reliance on foreign technology to attain ultimate capacity and true independence beyond national anthem, flag, and coat of arms.
This dependence gnawed at national security during those terrifying moments of Boko Haram’s ferocity between 2013 and 2015.
The jihadists were striking with nerve-wracking precision, which provoked a sober reflection on the dangers of sourcing defence needs from afar, even when all soldiers need is reinforcement from an armoury nearby.
Since the end of the civil war, Nigeria had relatively been at peace with itself. Its armoury depleted and became unable to match the ferocious attacks of new insurgents.
Capacity
But the NAF has refocusd Nigeria’s method of keeping its equipment “combat ready”. This is worth commending, particularly as its partner is local, which can be reached easily for adjustment or reconfiguration within short notice.
The deal with Innoson was signed after a study of its credentials in automobile production.
CNN reported on March 30 the NAF’s partnership with Innoson Vehicle Manufacturing (IVM) will see the company supply spare parts for jets conducting airstrikes against insurgents.
“The ingenious effort by IVM is instrumental to the continued operation of the Alpha Jets,” NAF spokesperson, Ayodele Famuyiwa, said of the deal.
“IVM helped to save the day when help was not forthcoming from abroad.”
The NAF reached out to Innoson in 2015, as it faced increasing difficulty with the import of vital parts such as brake pads. The deal was struck after a series of site visits around the country.
“The Army came to our factories in many states,” said Innoson spokesperson, Cornel Osigwe. “They saw we had the capacity.”
IVM, part of the Innoson Group owned by billionaire Innocent Chukwuma, started producing commercial vehicles such as coaches in 2007, before launching a range of private cars in 2014 – the first to carry a “Made in Nigeria” seal.
The offshoot company now employs over 7,000 people and has capacity to produce 10,000 cars a year. It is hoped that the partnership with the NAF could help the business expand further.
“The attention is providing a big boost for the company,” said Osigwe.
Innoson has gained several new clients since the deal, including the National Assembly (NASS).
Leading politicians, such as Senator Ben Murray-Bruce, have offered strong support.
Worthy example
As commentators have argued, it is not only government institutions that are supposed to patronise the products of this entrepreneur who has set a pace for promoting the indigenous auto industry.
The example of Innoson looms large when it is realised that other local auto assembly plants have existed for decades without thinking through the possibility of whole scale manufacturing.
Former Director of Defence Information, Major General Chris Olukolade, enjoined citizens to patronise Nigerian-made cars for the country to break free of technology dependence.
He reiterated that “100 per cent reliance on external sources for our defence need needs to be reduced as much as possible so as not to over expose our security institutions to foreign manipulations in the process of arms acquisition.”
Another security expert, C. Ubong, said: “It is good and other states and institutions in the country should patronise automobiles assembled in Nigeria to save the nation foreign exchange.
“It amuses me when we hear some states saying they are importing buses for their mass transit schemes from other countries while a company like Innoson is here producing the same.
“We should avoid the system of the past whereby over importation of automobiles led to the demise of local assembly plants due to a lack of patronage.
“That is one thing good about the 2014 automobile policy of the Goodluck Jonathan government, and I believe the current Buhari government should ensure the policy runs to the last letter.
“Buhari should bar states from importing mass transit buses in whole or in part, in fact any type of vehicle at all.
“You don’t make laws compelling Nigerians to buy only made-in-Nigeria whereas the government that made such laws imports foreign automobiles. This should stop.”
Innovator
Innoson pioneered the local production of jeeps and, gradually, Nigerian yuppies are buying them.
It has revolutionised production system in a seamless, flexible modus that it can shift production anywhere, close to the customer’s base, if required.
It can meet production targets in Enugu, Abuja, Lagos, Nnewi or Ibadan on schedule.
Innocent Chukwuma, the company’s chairman, has received countless honours for inspiring men to push the frontiers of national development.
He is the face of Nigeria’s inward-looking policy, a tempo Buhari can consolidate by making it mandatory for states to stop the economic sabotage of importing mass transit buses from abroad when Innoson can meet the demand.
Pace setter
Innocent Chukwuma, popularly known as Innoson, is the group chairman and chief executive officer of IVM, the first indigenous vehicle manufacturing plant in Nigeria.
He was born in 1961 in Umudim, Nnewi, Anambra State; the last of six children.
After his education, he started trading in spare parts under the name Innoson Nigeria in 1981. His company is next after Leventis and Boulos Enterprises in assembling branded motorcycles.
The business has expanded into four manufacturing companies –
• Innoson Nigeria. Manufactures motorcycles, tricycles, spare parts, accessories.
• Innoson Tech and Industries. Manufactures household and industrial plastics, health and safety accessories, storage containers, fixtures and fittings, electrical components, accessories.
• Innoson Vehicle Manufacturing. Manufactures city buses, mini and midi buses, pick-up trucks, garbage collecting vehicles.
• General Tyres and Tubes Company. Manufactures tyres, tubes.
Vehicles in the IVM fleet range from cars, trucks, to SUVs, and compactors.
The company has also made in-roads into Ghana, Sierra Leone, Chad, Niger, and Togo.
Chukwuma said his company became the first indigenous motor manufacturer to prove that Nigerians can do it, and the inspiration was drawn from a desire to see Nigerians drive new cars.
“Nigeria has become a dumping ground for secondhand cars. I know it was the high price of new vehicles that made Nigerians resort to patronising old vehicles, but since we decided to manufacture the vehicles here, the price is affordable, and our people can drive new vehicles again,” he told Vanguard.
Breakthrough
He faced a lot of challenges at the beginning because some people felt it would not work, but today, the group employs more than 7,400 Nigerians as part of the testament of success.
Chukwuma recalled to Vanguard: “I started as a small businessman dealing in spare parts in Nnewi.
“At that time, people were bringing only secondhand motorcycles to Nigeria, and I felt there should be a way to reduce the price of new ones, so that people would be interested enough to buy new ones, rather than the secondhand motorcycles.
“I travelled overseas and found out that there were four companies importing motorcycles into Nigeria.
“First was Leventis that was bringing the Honda brand, the second company was Yamaco that was bringing Yamaha, the other company was Bolus that was bringing Suzuki, and the fourth was CFAO that was bringing Mobilet.
“These were the companies that were dealing in motorcycle in Nigeria, and my company was the next one.
“I discovered that when they brought the motorcycles in crates and each crate contained one motorcycle which took a lot of space and you could put about 40 units in one 40ft-container.
“With 40 units of motorcycles in a 40ft-container, the motorcycle would become expensive.
“So after evaluating it, I went to overseas and packed 200 units in one 40ft-container and my price came down by 40 per cent. Of course, this was cheaper.”
Chukwuma discovered that if he disassembled the parts, brought them in and assembled locally, it reduced the cost of packing fully assembled machines.
This led to a reduction in the price of motorcycles from N150,000 to N60,000.
He also discovered that there are a lot of plastics in a motorcycle and set up a plant to produce the plastic components locally.
Today, nobody thinks of buying secondhand motorcycles in Nigeria. A new one is cheap.
Chukwuma has also reduced the price of vehicles.