Nigeria's leading finance and market intelligence news report.

FG plans N10bn palliative for transport operators

The Federal Government of Nigeria has approved a N10 billion survival fund for transport workers and operators in the country.

Gbemisola Saraki, minister of state for transportation, made the disclosure when Isaac Uhunwagho, president, Public Transport Owners of Nigeria Association (PTONA), led the association’s national executive committee and trustees to pay her a courtesy visit in Abuja.

In a statement made available to journalists in Abuja by the director of press of the ministry, Eric Ejiekwe, Saraki informed the delegation that the funds, which will help cushion the sufferings encountered by road transport workers and operators as a result of the COVID-19 pandemic, is domiciled with the Federal Ministry of Industry, Trade and Investment.

She said that the Ministry of Transportation is currently working on the modalities for its disbursement.
The minister stated that the government will soon initiate a master plan that will reform the sector and solicited the buy-in of all stakeholders.

Reacting to challenges operators face from state governments and other stakeholders, the minister gave the assurance that she will discuss the issues through the National Transport Commissioners’ Forum.

Stating that 90 percent of Nigerians travel by road, she disclosed that talks are ongoing with the Federal Ministry of Works and Housing on the concessioning of some routes which she thinks is the best way to go so as to increase government revenue.

Saraki enjoined them to avoid duplicity and formalise their structure in an organised manner for better engagements with the ministry and other relevant agencies.

Responding, Uhunwagho stated that their visit was in respect of challenges being faced by the body and also to appreciate the minister’s efforts towards tackling the challenges and the cooperation and protection which the ministry is now ready to provide for public transportation in Nigeria.

He further pleaded for COVID-19 financial palliatives for the association members to prevent their businesses from folding up.

He further lamented that despite PTONA members being the major investors in the transportation sector, it is ironical that their companies are the prime target for state and local government authorities who impose taxes, levies and other ridiculous conditions on their members.

These challenges, among others, necessitated the visit on the minister and hoped their pleas would be looked into.

PTONA members he said felt the impact of the lockdown the most as their branded buses could not operate due to the ban on interstate travel.

The general motor parks, he said, did not comply with the ban on movement, as their parks enjoyed black market transportation boom.

Whatsapp mobile

Get real time updates directly on you device, subscribe now.