President Muhammadu Buhari’s administration has delivered a total of 4,116 buses to beneficiaries nationwide under the Public Mass Transit Revolving Fund (PMTF) Scheme; the Managing Director of The Infrastructure Bank has disclosed.
A total of 4,116 buses valued at N37 billion has been delivered to beneficiaries nationwide under the Federal Government’s Public Mass Transit Revolving Fund (PMTF) Scheme.
The Managing Director of the bank, Adekunle Oyinloye, stated this in a paper he presented at a National Workshop for Chief Executive Officers of Mass Transit Companies in Abuja.
Oyinloye said the buses were released to mass transit companies to provide cheap and affordable road transport services to Nigerians across the six geo-political zones and the FCT.
According to him, the vehicles were provided under Phases I and II of the N25 billion PMT scheme being managed by his bank.
He said the scheme had also empowered over 50,000 Nigerians, including bus drivers, bus assistants, auto technicians and booking clerks, through direct employment. The scheme has thrived in reducing poverty and enhancing regional integration, as more people are able to move easily across different regions of the country, and across the West African sub-region,” he said.
“The PMTF Scheme offers a single digit interest rate regime of five per cent per annum in Phase 1 and zero per cent per annum in Phase II.
“This has resulted in cost savings of about N10 billion when compared with the prevailing interest rate of about 25 percent per annum obtainable in other financial institutions.”
Oyinloye said: “ the PMTF beneficiaries were investing those cost savings in providing allied transport infrastructure like motor parks, service centres, ICT platforms, fleet maintenance, among others”.
He explained that his bank has continually managed the PMTF in line with international best practices.
“These are premised on a sound internal credit procedure and robust risk mitigating strategies that ensure beneficiaries fulfil their loan obligations, as and when due.
“This is the foundation upon which the successes so far achieved by the Fund were built.
“We are on standby to assist the federal government and any agency to successfully launch and sustain an intervention fund programme for transportation and other economic sectors,” he said.