Nigeria’s Federal Government has set up N25 billion revolving loan scheme for transport companies in the country to access funds for purchase of mass transit vehicles.
The Minister of Industry, Trade and Investment, Mr. Okechukwu Enelamah, who spoke today, Tuesday, in Abuja at the opening of a two-day national workshop for chief executives of mass transit companies, said that the initiative is aimed at boosting the country’s mass transit system as well as encouraging local patronage of local vehicle assembly plants.
According t him, the loan would be administered through the Infrastructure Bank at zero percent interest rate.
“Government is determined to develop the automotive industry because of its extensive linkages, impact on job creation, technology transfer as well as foreign exchange savings and earnings.
“The response by investors has been encouraging and we have brought back vehicle assembly and are now focussing on local content development. Many of the new assembly plants produce buses and mini-buses. I hereby call on all Nigerians to patronize the products of these assembly plants.”
Enelamah advised the workshop participants to come up with innovative solutions for the development of an efficient and affordable mass transportation system in the country.
The Minister of Transportation, Chief Rotimi Amaechi, said that the mass transit sector is one of the major engines driving the nation’s socio-economic and cultural development even as he said that in spite of this, the sector is facing huge challenges, including low operational capacity, broken down vehicles, obsolete facilities and poor maintenance culture.
The minister said that a vibrant local automotive industry would significantly address those challenges while at the same time depending on the mass transit sector for patronage.
“This workshop is, therefore, organised to appraise the mass transit perspective of the Nigeria Automotive Policy. It is a platform for stakeholders to meet and exchange ideas on the effective implementation of the policy and make recommendations for realising a sustainable mass transport agenda for Nigeria.
“The dynamic leadership of President Muhammadu Buhari is poised to address the challenges facing the transport sector. The Federal Government is willing to invest heavily in this sector.
“We are already seeing practical efforts in that regard, especially with the rail transportation system.”
The workshop was organized by the National Automotive Design and Development Council in collaboration with the Nigerian Institute for Transport Technology, Zaria.
The theme of the workshop is: “Nigeria Automotive Policy: A National Agenda for Sustainable Mass Transit Operation Development.”
NAN. [myad]
