Innocent Chukwuma’s IVM distances itself from Zugacoin

Editorial Team -

Nigerian cryptocurrency founder Archbishop Sam Zuga has made bold claims that its “partnership” with Innosson Vehicle Manufacturing (IVM) will allow customers to comfortably purchase products with his Zugacoin from anywhere in the world.

In Nigeria, where the government has placed an embargo on the use of cryptocurrency, Vanguard reported that Zuga and IVM founder Innocent Chukwuma sealed the deal on March 13. The archbishop boasted earlier this month that Zugacoin users will now be able to cash out in fiat currency regardless of their geographic location.

However,  IVM denied Zuga’s partnership claims in a Twitter statement written on March 15 by its Head of Corporate Communications and Affairs Cornel Osigwe.

The statement read: “Based on various enquiries through calls and emails two innocent vehicles on whether it accepts the coin or any other cryptocurrency for the purchase of an awesome vehicles or any other products from a nursing group we buy this medium to state that we stand by the decision of a central bank of Nigeria that the use of cryptocurrencies in Nigeria Controversy existing laws as they are not legal tender.”

The situation is complicated as the Nigerian government is an IVM partner, which means the company would naturally lean toward state cryptocurrency policies.

In a circular issued on Feb. 5, the Central Bank of Nigeria reminded deposit banks and other financial institutions not to support cryptocurrency exchanges. The regulator mandated banks to identify persons and entities transacting in or operating these exchanges within their systems and to ensure the accounts are closed immediately.

IVM is Nigeria’s leading automobile company based in Nnewi in Anambra state. Over the last decade, it has partnered with the federal government to produce vehicles, as well as ventilators during the COVID-19 pandemic. The federal government in December 2020 purchased 77 new pickup trucks from IVM “to make road traffic regulation activities easy, for the Federal Road Service Corps (FRSC),” Autojosh reported.