The Senate yesterday asked Managing Director and Chief Executive Officer, The Infrastructure Bank (TIB), Abdulrazak Oyinloye, to explain how N8.9 billion Subsidy Reinvestment and Empowerment Programme (SURE-P) funds for the mass transit buses nationwide were being managed.
Chairman, Senate Ad-Hoc Committee on SURE-P, Abudul Ningi, specifically wanted to know how 807 buses bought so far under the scheme were distributed and to whom.
The funds were given to TIB in July 2012 to acquire high capacity buses under the Public Mass Transit Revolving Fund Scheme of the SURE-P.
Onyinloye told the lawmakers that N8.9 billion has so far been released to the TIB by SURE-P.
He said, “TIB received this amount on July 26, 2012, for payment to vehicle providers who had supplied vehicles since January 2012.
“It is interesting to note that TIB as the fund manager has been able to judiciously utilise and recycle the N8.9 billion received in July last year and make disbursements in the form of vehicles worth over N9.06 billion.”
He noted that the fund size could not grow beyond the N8.9 billion because interest rate is zero per cent.
He explained that of the 807 buses, ABC Transport Plc, representing the South, got 20 buses valued at N247 million, Afenmai Line Transport Limited, South-South, received 10 buses worth N118.75 million, Ajetunmobi Integrated Services Limited, South West, got 20 buses at the cost of N205.936 million, Ani B. Barak Nigeria Limited, North East, got five buses worth N42.54 million, and Annasai Nigeria Limited (FCT) fives buses worth N42.54 million.
Abuja Urban Mass Transport Company Limited, FCT, got 200 buses worth N2.47 billion, Autostar Travels and Tourism Limited, South East, got 32 buses valued at N373.44 million, Dabo Motors Limited, North West, got 25 buses worth N302 million, Mallam Madalla Enterprises, North East, got 10 vehicles valued at N85 million, Nigerian Association of Road Transport Owners (NARTO nationwide) got 42 buses at the sum of N403 million, LAGBUS Operators, Lagos, got 100 buses valued at N1.235 billion, Shaanxi Auto Limited (FCT) received 20 buses worth N247 million and Abuja Transport Cooperative Society (ATCS FCT) got 20 buses worth N247 million.
Other organisations that benefited from the 807 buses include the National Union of Road Transport Workers (NURTW nationwide), which got 234 buses worth N2.335 billion, Road Transport Employers’ Association of Nigeria (RTEAN nationwide) received 42 buses worth N370.73 million, Safetrip Limited, North Central, got 13 buses worth N227.62 million, while Dash Gold Nigeria Limited, A.M.D Nigeria Limited and Dabo Motors Limited all of North West received three vehicles each at the cost of N35.625 million respectively.
Oyinloye noted the first phase of the scheme has been successful so far with vehicles distributed across the six geo-political zones.