Innoson Motors, Oil Firm At War Over N430m Vehicle Supply Contract

A firm which specialises in providing vehicle lease services to oil companies, Petronella (Nig) Limited has written a petition against Innoson Vehicle Manufacturing (IVM) Company to the Federal Competition and Consumer Protection Commission (FCCPC) for failing to supply its vehicles worth N430 million.

In the petition signed by one Olaniwun Ajayi and dated January 10, 2023, which was addressed to the FCCPC executive vice-chairman, Petronella claimed that sometimes in October 2021, it paid a total of N415million out of a total sum of N430million it agreed with IVM management to supply it 20 units of its “IVM’s five-seater, double-cabin, 3.0L diesel pick-up known as the IVM Granite” at per unit cost of N21,500,000.

When contacted, the proprietor of Innoson Motors, Chief Innocent Chukwuma accused Petronella of keeping his vehicles and wanting him to refund him the money he paid.

Chukwuma said, “The complainant is still with my vehicle. If the company (Petronella) brings my vehicles, I will pay them their money.”

Petronella had alleged that part of the agreement it reached with IVM management was that the vehicles should “possess a five-star NCAP (New Car Assessment Programme) rating”.

It stated that Shell Petroleum Development Company, SPDC, of Nigeria approached it to lease the vehicles to it following which it went to Innoson Motors and the management promised that it had capacity to manufacture the vehicles with the NCAP five-star rating.

The firm said it therefore made payments to Innoson in three tranches, first, N65million on October 11, 2021, and subsequent payments of N80million and N270 million totalling N415 million out of the whole agreed N430million.

The company claimed that Innoson Motors had after it paid the first deposit of N65million promised to supply it with the 20 vehicles within two weeks.

It, however, complained that Innoson Motors only eventually supplied nine vehicles later and that because one of the vehicles was found to have an engine fault on the day of delivery it was taken back by the Innoson Motors personnel leaving behind only eight vehicles supplied to it.

Petronella said the eight vehicles were even later found to be lacking the NCAP five-star rating specifications it agreed with IVM.

It said because IVM failed in the contract, SPDC cancelled the vehicle lease contract it awarded it.

Petronella said it obtained a loan from commercial banks to pay Innoson Motors for the supply of the vehicles, and that SPDC should have been paying it (Petronella) the sum of N805,443.20 daily if it had leased the vehicles to the oil company.

Petronella stated that it was from SPDC’s daily payment that it had hoped to pay back the loan it obtained to pay Innoson for purchase of the vehicles and also pay the interest on the loan, but, that due to the failure by Innoson to deliver a huge debt is now hanging on its neck.

Petronella stated that when it requested Innoson to provide proof that the eight vehicles it eventually supplied even had NCAP rating specifications it failed to provide any, and that development forced it to return the eight vehicles to Innoson’s branch office in Abuja.

Petronella complained that Innoson had refused to refund the sum of N415m it paid to the company.

Petronella cited several breaches of the FCCPC Act by Innoson Motors in respect of the vehicles supply contract and appealed to FCCPC to compel Innoson to refund it the N415million and pay it for the damage it had caused it by breaching the contract.