Transporters bemoan non-disbursement of N10bn COVID-19 bailout

Indication has emerged that the N10bn COVID-19 bailout intervention fund to operators in the Nigeria’s auto industry which is expected to rescue ailing companies and firms to reposition the sector seems to be shrouded in controversy as operators continue to lament about their inability to cope with the challenges of providing adequate services to the citizenry.

Transport operators across the country have therefore urged the federal government to urgently disburse the N10 billion COVID-19 palliative fund to their members to avert imminent collapse of the sector.

Gentechnews gathered that the huge fund earmarked as bailout for the transport operators is causing ripples as some operators are alleging that they were side-lined in the disbursement.

It was also learned that among the operators who have been asked to submit documents for verification were the inter-state luxury bus operators, under the aegis of the Public Transport Owners of Nigeria Association, (PTONA).

The transporters who had lost billions of naira due to the 98-day COVID-19 pandemic lockdown had expected that they would deploy the palliative to  boost their business but are yet to benefit.

Deputy President of PITONA, Emeka Mamah in a letter dated March 28, 2021 addressed to the Minister of State for Transportation and Federal Ministry of Transportation pleaded for the verification of two key issues as it concerned the fund.

First, PITONA appealed to the Minister to correct apparent confusion in treating the N10 billion COVID-19 palliative fund approved for Road Transporters as MSME Survival fund domiciled in the Federal Ministry of Industry, Trade and Investment.

PITONA also asked for immediate disbursement of the fund to their members to prevent imminent collapse of interstate passenger transport companies in Nigeria.

PITONA lamented that all efforts made to secure an appointment to pay a working visit to the Minister to discuss issues relating to the delay in disbursing the fund to road transporters was not granted.

“However, in your reply to our letter, dated March 3, 2021 (a copy is attached) our request for the visit was neither approved nor rejected. On the contrary, you simply advised our association to redirect its inquiry regarding the fund to the Federal Ministry of Industry, Trade & Investment since the intervention fund for the transport sector had been released to the ministry by the Federal Government”, PITONA stated in the letter.

PITONA argued that the N10 billion COVID-19 Palliatives Fund approved by the Federal Government was totally different from an aspect of the N60 billion MSME Survival Fund domiciled in the Federal Ministry of Industry, Trade and Investment.

The group posited that “the N10 billion COVID-19 Palliative Fund was meant to assist road transporters to resuscitate their businesses that were on negative income throughout the 14 weeks that the country was on complete lockdown for all interstate passenger movement due to COVID-19 pandemic.”

‘’On the other hand, an aspect of the N60 billion MSME Survival Fund domiciled in the Federal Ministry of Industry, Trade and Investment is a one-off grant designed to support vulnerable Micro Small and Medium Enterprises in meeting up their salary obligations under the Federal Government’s National Economic Sustainability Plan, (NESP),” the group added.