January 11, 2012 by Rasheed Bisiriyu

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.

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

By this move, jobs will be created and transport costs will be reduced.

For Christ sake this should be on the front page!
We also need good news too!

Playing on Igbos emotions as usual.

Great news. Subsidy must go!
Our local economy needs a REAL shot.

Good one. Time to develop our Auto industry.

Now why could they not have mentioned this? Instead of harping on ridiculous BS.
This allows the local auto industry to thrive, but please allow for transparency before wahala don start.
Also, are there safety regulations in our auto industry. As much as I like this effort, we have to make sure this is safe. Set the groundwork, with safety regulations and transparency and future developments (in the auto industry at least) will follow suit.

And the argument here's what? Subsidy had to go for local manufacturers to be patronized and jobs created?

wesley80:

And the argument here's what? Subsidy had to go for local manufacturers to be patronized and jobs created?

HELL YEA! 
On a more serious note, when subsidy is officially gone, FG will have no other excuses for not developing the local economy, at least I hope.

I hope they are also ordering forks & knives with these buses. If Nigerians are now to eat buses, govt must realise that ordinary hands can't serve iron into our mouths.

And pls, how many will service the road to my farm which has made me change the absorbers on my SUV twice now?

Seriously, is "borrowed" transport the way to convince Nigerians that we are serious? First, 1100 buses and now 6000! Won't the loans taken to acquire these be paid back? Is it Naija roads that these will ply? These same roads that wreck vehicles daily? Would that reduce the cost of a bag of pure water from 150 to 60? Would those buses provide light in our homes since Nepa is comatose?

GEJ may have good intentions but these "stories" make him look bad as they show lack of understanding of the problem.

1. Do NOT buy more cars to worsen traffic - FIX the bad roads and allow us spend less navigating bushes etc to move
2. Do not tell me you'll build railways - show me on the ground rather than in your mouth
3. Fix power so we don't need pms to watch TV etc
4. Address corruption - make examples so we know its not just talk
5. Stop with the noise! Propaganda is irritating and suggests insincerity, just DO your job

I don't think we hate GEJ but talk talk talk na wai

So, did Reuben Abati lie then? I know the tribune is one of the newspapers that defends the presidency to a fault so did tribune make the story up or did Reuben Abati lie to the nation yet again? http://tribune.com.ng/index.php/news/34018-jonathan-in-nigeria-commissions-mass-transit-scheme

I mean we were informed by sources that Abati himself denied the Federal government's involvement in the acquisition of the 1100/1600 buses. Now, we are to believe that the same Federal Government is actually looking to acquire,with our money, 6000 buses for it's own road transportation scheme? WOW . . . . . ink never even dry finish and the chaos don dey cook already on how the money saved from subsidy removal will be wasted yet again. 

The impact of this on the growth of our local manufacturing industry will be tremendous. Apart from the direct impact on the auto industry, it will also have an impact on others who supply / service the auto industry. The upholstery, the glasses, etc.

As long as it is good news nobody will comment.

Akanbi_edu:

Playing on Igbos emotions as usual.

Exactly, arrant nonsense. Why now and not before the removal of subsidy? Subsidy must stay.

People, [size=13pt]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? [/size]

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?

You all should be mature enough to ask some critical questions about how your Government is choosing your spend your money . . . money that most of you expect to keep the nation running for your kids and future.

So this is the Federal Assisted Transportation scheme Nigerians were promised? Fuel Subsidy is removed so that money from the program can be used for yet another Federally managed scheme.