The Federal Government has set aside N15bn as loan for operators of mass transit buses in the country to encourage them to patronise locally-made buses.

Vice President Namadi Sambo disclosed this on Thursday while presiding over a meeting of the Special Committee on National Mass Transit Framework at the Presidential Villa, Abuja.

Sambo said the loan, which would be accessed from the Infrastructure Bank, would be at zero per cent interest rate.

He said, “Access to cheap financing is important to encourage local manufacturing of mass transit buses. There is zero per cent interest rate money for the transporters to access, but only to buy from local manufacturers.”

Sambo directed the Ministry of Trade and Investment to meet with local automobile manufacturers to ascertain their true production capacity and readiness to meet the demands of the operators.

He said the fund would also be extended to mass transit services in the country’s waterways and the railways.

The vice president promised that he would also discuss the need to encourage local producers of buses with the 36 state governors during the next National Economic Council meeting.


Source;www.punchng.com/business/business-economy/fg-approves-n15bn-loan-for-locally-made-buses/

Who said the gej admin Is not working

This is really good. Lets hope it's not just talk and no action. The transporters should be well known names in the industry to avoid PDP moneybags stealing the money. The transaction should be made directly with the manufacturer so that money is not diverted.

Very Good initiative

Where is the factory located and what are the measure in place to check judicious spending of the loan?
I can seen some dreaded brains applauding this empty project design to loot as usual!

jas_o: Where is the factory located and what are the measure in place to check judicious spending of the loan?
I can seen some dreaded brains applauding this empty project design to loot as usual!

I think you are sick upstairs. must you comment when you really have absolutely nothing to contribute. emergency commentator like you

my concern is not the approval of the funds but the disbursement. There are many approved roads on paper but never executed on the land. There are many promises like boko haram issue that would end by last year June.
Another issue is the government patronage of the bus manufactured by the companies. There is certain allocation to the health and education sector during the preparation of the annual budget. How many of these leaders that do the budget patronises nigerian hospital and public schools? It is very nice approving the fund for them but it will be very better if they can be patronising the manufactured buses from these companies for their official assignments. That will give the companies psychological boost up apart from the financial boost up from the loan by the presidency.
But the civil problem is that the fund may be diverted for other use by the beneficiaries to another thing or even misappropriated and mismanaged.

#15bn loan at zero interest rate to Transporters to buy Mass Transit Vehicles (road, waterways etc) from Local Manufacturers (whose productn costs already significant went down early dis yr by d new Zero Tariff and VAT on importatn of Partially Broken Down Vehicles Units- dier main 'raw' materials-announcd by d President dis yr), coupled with perhaps d MOST works bn done by any Nigerian Govt in such Mass Transit Routes such as Railways, Inland Waterways etc....GREAT tins are happening steadily..

I wonder why this good news is not on the front page. if to say na bad news or the usual propaganda e for don front page even without no comment.

Tolexander: my concern is not the approval of the funds but the disbursement. There are many approved roads on paper but never executed on the land. There are many promises like boko haram issue that would end by last year June.
Another issue is the government patronage of the bus manufactured by the companies. There is certain allocation to the health and education sector during the preparation of the annual budget. How many of these leaders that do the budget patronises nigerian hospital and public schools? It is very nice approving the fund for them but it will be very better if they can be patronising the manufactured buses from these companies for their official assignments. That will give the companies psychological boost up apart from the financial boost up from the loan by the presidency.
But the civil problem is that the fund may be diverted for other use by the beneficiaries to another thing or even misappropriated and mismanaged.

Exactly. Aviation fund comes to mind. Up to 30 billion of the money was collected and allegedly diverted by Jimoh Ibrahim.

Going by average N10million/bus we should have average of 1,500buses in Nigeria
Going by average N5million/bus we are expecting 3,000buses in Nigeria.
But I trust the committe all the buses will be commissioned via papers only i.e. no physical evidence

FG. with promises and fail, where is the buses they promised during subsidy protest?

Good initiative, poor implementation and high level corruption, the bane of National development and Regional Integration in Nigeria

Apart from Innoson is there any local assemblers of Buses\cars

another avenue to siphon our money.

Silly policy, everything is always in framework and pipeline. This government lacks the fineness of giving Nigerians a well thought out policy.
Putting money in a bank is hardly the problem, after all all banks in Nigeria hold cash/liquidity, but how accessible are these loans?
What do you need to access them? That the interest rate is 0% does not mean it's accessible.

theshadyexpress: Who said the gej admin Is not working

I did ... you got a problem with me?

Oh because they accused the federal government of not patronizing them now they want to prove a point. Let's see where these leads to. But I'd suggest they buy their official cars from these local manufacturers

Seems logical. A sensible policy/initiative if not abused. Thing is, Innosons' sales will increase only marginally because govt agencies will continue to patronise Toyota, or how else will they inflate contracts? Still, this measure is the most genuinely applicable.

gej 2015

HAH: Apart from Innoson is there any local assemblers of Buses\cars

was jus tabout to ask this...

babaowo: FG. with promises and fail, where is the buses they promised during subsidy protest?

that one don enter voicemail! As usual, it's another avenue to siphon money. locally made bus indeed!

Story, story (story). Once upon a time.... End of story!

Ok. . . . Innoson better start producing Bulletproof jeeps for judicial consumption oh! Abi?

Scarpon: gej 2015

I pity your children and grandchildren!

Haha, some people are already having heart attack because of this policy. Rather than sitting here and criticizing, how about you go to the industrial bank and apply to get your own loan to purchase buses and start your own transport business. I heard that the BRT buses in Lagos has turned "garbage in motion", this will encourage young entrepreneurs, i.e., if they wouldn't sit on NL and bi.t.ch all day.

LAUDABLE! If well executed,I will be thrilled! This is what governments of nations that want to develop do. More private manufacturing companies to enjoy this support please.

@op, change to topic to LOCALLY ASSEMBLED buses. Its just like d lego game, oyinbo go produce am, we go buy am for our pikin and our pikin begin assemble.

babaowo: FG. with promises and fail, where is the buses they promised during subsidy protest?

You may be walking blindfolded if you havent seen one.

Story Story.

HAH: Apart from Innoson is there any local assemblers of Buses\cars

i love the word assembler....it baffles me when we talk as if there are real automobile manufacturing company here in Nigeria.

but then...its good to start from somewhere...hoping we'll get there.

Can someone please tell me how much exactly is needed to solve the curse of inadequate power supply in Nigeria? Thats what is actually affecting the common man and industries, without this, a bulk of any capital investment dedicated to any company would be used on running cost especially to generate electricity. GEJ please solve this problem first b4 dashing out monies with good excuses to be squandered on operational costs!