FG Distributes 4,116 Buses Valued N37bn NationwideThe federal government has distributed a total of 4,116 buses valued N37 billion nationwide under the Public Mass Transit Revolving Fund (PMTF) Scheme.
The News Agency of Nigeria reports that the buses were released to mass transit companies to provide cheap and affordable road transport services to Nigerians across the six geo-political zones and the FCT. The managing director of The Infrastructure Bank, Mr Adekunle Oyinloye, stated this in a paper he presented at a national workshop for Chief Executive Officers of Mass Transit Companies in Abuja.
He said the scheme has also provided employment opportunities for over 50,000 Nigerians, including bus drivers, bus assistants, among others. The vehicles were reported to have been provided under Phases I and II of the N25 billion PMT scheme being managed by The Infrastructure Bank.
“In addition, the scheme has thrived in reducing poverty and enhancing regional integration, as more people are able to move easily across different regions of the country, and across the West African sub-region.
“The PMTF Scheme offers a single digit interest rate regime of five per cent per annum in Phase 1 and zero per cent per annum in Phase II. “This has resulted in cost savings of about N10 billion when compared with the prevailing interest rate of about 25 per cent per annum obtainable in other financial institutions,’’ he said.
Oyinloye observed that PMTF beneficiaries were investing those cost savings in providing allied transport infrastructure like motor parks, service centres, ICT platforms, fleet maintenance, among others.
“On our part as the fund manager, we have continually managed the PMTF in line with international best practices.
“These are premised on a sound internal credit procedure and robust risk mitigating strategies that ensure beneficiaries fulfill their loan obligations, as and when due.