http://www.punchng.com/business/business-economy/subsidy-local-assembly-plants-to-supply-6000-buses/

Local vehicle assembly plants are to supply about 6,000 buses in the first six months of this year to cushion the effects of fuel subsidy removal on the people.

The buses, according to the Executive Director, Nigerian Automotive Manufacturers Association, Mr. Arthur Madueke, will be injected into the urban mass transit scheme just inaugurated by the Federal Government.

This came on Tuesday just as the Luxury Bus Owners Association said its members had not increased their fares as a result of the fuel subsidy removal.

The group, which urged the Federal Government to remove import duty and Value Added Tax payable on all imported fully built commercial buses, said it was in support of the removal of subsidy on Premium Motor Spirit.

Madueke told our correspondent in a telephone interview on Tuesday that the new bus deal was sealed in Abuja last Thursday during a meeting between the local bus assemblers and the Federal Government team led by the Minister of Trade and Investment, Mr. Olusegun Aganga.

President Goodluck Jonathan had on Sunday inaugurated the mass transit scheme with 1,100 buses, some of which were imported.

He had earlier approved N15bn for the commencement of the scheme.

Jonathan had said with a robust mass transit culture, the cost of transportation would be reduced, comparable to what obtained in developed economies, adding that the three tiers of government would be involved in the scheme, with the support of transport unions and commercial banks

Madueke also confirmed that 50 per cent of the first set of vehicles for the scheme would be obtained locally.

According to him, Innoson Vehicles Manufacturing Company of Nnewi, Kano-based National Truck Manufacturer and Anambra Motor Manufacturing Company of Enugu are major contributors to the scheme.

“By March, we should be able to supply 2,000 buses to the scheme; and at the end of the second quarter, we promise to deliver between 5,000 and 6,000 buses,” he said.

The NAMA director said that most of the local vehicle assembly plants were currently running on a single shift, adding that with assured patronage, they could run two or three shifts.

He stressed the need for the operators of the buses to carry out routine maintenance of the vehicles with the local assembly plants or their accredited workshops.

“The maintenance cost will be at affordable rates; this will be part of the deal; we don’t want a situation where the vehicles will be mismanaged or poorly maintained and will end up giving the manufacturers/ local assembly plants negative image,” he said.

Madueke had before now said the existing 12 vehicle assembly plants located in different parts of the country with a combined capacity of 150,000 vehicles annually, were currently producing at about 10 per cent of their installed capacity.

Meanwhile, LBOA said in a statement on Tuesday that its memebrs had not increased their fares.

Is this a good start? What do you think about this?

This is a good start - Hopefully this will increment to over 100% as we need all of the homegrown economy we can get.

And hopefully this won't be another white elephant scheme .

^^^ Why not ask yourself first why a Federal Government is purchasing 6000 buses?Why is a federal Government getting it's hands into road transportation when it is the Federal Government that is reason why our road transport system remains underdeveloped and road transport industry remains the way it is?

What is wrong is asking the right questions first? Will purchasing 6000 buses from Innoson or any other company cure the local economy? Or even the actual problems with our roads or road transport industry? Does Nigeria need the Federal Government, that has over 20,000 FAILED PROJECTS to look into and work on getting our money back from, need to take on another massive project such as this one? Does this administration, or any other, at this time, have even 1/10th of what it takes to run a decent National bus/road transport scheme/system?

Kobojunkie:

^^^ Why not ask yourself first why a Federal Government is purchasing 6000 buses?Why is a federal Government getting it's hands into road transportation when it is the Federal Government that is reason why our road transport system remains underdeveloped and road transport industry remains the way it is?

What is wrong is asking the right questions first? Will purchasing 6000 buses from Innoson or any other company cure the local economy? Or even the actual problems with our roads or road transport industry? Does Nigeria need the Federal Government, that has over 20,000 FAILED PROJECTS to look into and work on getting our money back from, need to take on another massive project such as this one? Does this administration, or any other, at this time, have even 1/10th of what it takes to run a decent National bus/road transport scheme/system?

Are you addressing me? Lol.

GEJ is the man. Anybody that says different is a tribalist and opportunist.