The House of Representatives Committee has raised concerns over the non-repayment of a N16 billion loan allocated for the Urban Mass Transit Schemes.
This loan was facilitated through the Subsidy Reinvestment and Empowerment Programme (SURE-P) funds.
The ad hoc committee, tasked with investigating the Failure of Federal Mass Transit Schemes in Nigeria since 1999, has highlighted the inability of beneficiaries to meet their repayment obligations. Afam Ogene, the Chairman of the Committee, released a statement on Monday underscoring this issue.
Ogene emphasized that a substantial number of the beneficiaries who received government intervention failed to fulfill their loan repayment commitments. The SURE-P scheme was introduced by former President Goodluck Jonathan following the partial removal of the subsidy scheme.
The scheme facilitated the release of 1,179 vehicles to beneficiaries, with a repayment plan spanning four years. However, records indicate that many beneficiaries defaulted on their repayment obligations, despite the contractual agreements signed between them and the Trustfund Pensions Plc (TIB).
Chairman Ogene pointed out that by December 2015, only two beneficiaries, ABC Transport PLC and The Young Shall Grow Transport Limited, managed to successfully repay their loans. The remaining beneficiaries have not adhered to the stipulated repayment terms outlined in the contractual agreements with TIB.
In spite of the setbacks from the previous intervention, the administration of President Muhammadu Buhari attempted to introduce various transportation interventions. The committee, under Mr. Ogene’s leadership, is committed to investigating the efficacy and outcomes of past interventions within the transportation sector.
