FG offers N25bn lifeline to mass transit companies

Mass transit companies in Nigeria may soon have cause to smile, as the Federal Government has said it has set up a N25 billion revolving loan scheme for them.

The loan scheme, which comes at zero percent interest rate, is expected to enable the transit companies access funds to purchase mass transit vehicles.

This was disclosed by the Minister of Industry, Trade and Investment, Mr Okechukwu Enelamah, on Tuesday at a two day workshop for chief executive officers of mass transit companies by the National Automotive Design and Development Council, NADDC and the National Institute for Transport Technology, NITT, in Abuja.

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According to Enelamah, the loan would also encourage the companies to patronize local vehicle assembly plants.

The minister said: “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 focusing on local content development.

“Many of the new assembly plants produce buses and mini-buses. I hereby call on all Nigerians to patronise the products of these assembly plants,’’ he said.

By Timothy Enietan-Matthews….

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