Transporters cry foul over alleged diversion of N10bn COVID-19 bailout

There is growing discontent among transport operators over reported disbursement of N10bn funds promised them by the Federal Government to ease the effects of last year’s prolonged COVID-19 lockdown on their business.

While the Federal Government claimed to have released the money to transporters, luxury bus owners and city bus operators said none of them had received the intervention funds.

The transport operators said they had continued to wait for the funds in vain after submitting documents to the Federal Government for verification as requested.

PTONA had earlier in 2020 estimated a loss of about N200bn in revenue just in 10 weeks of the lockdown.

Another major operator who spoke under anonymity said that when they approached the Federal Ministry of Transportation, they were directed to the Ministry of Industry, Trade and Investment.

On getting to the Ministry of Industry, Trade and Investment, the source disclosed that they were told that the money had been disbursed to Keke-Napep riders

Road Transport Employers Association of Nigeria also claimed its members had not benefited from the fund.

Confirming their position, the National President of RTEAN, Alhaji Musa Muhammed, said he was not aware of the funds disbursement.

“I am not aware of any N10bn palliative. We have not seen anything. The only money which some of our members got was the N30,000 MSME fund and not many people got the money,” Muhammed said.

It was learnt that among the operators who have been asked to submit documents for verification were the interstate luxury bus operators under the aegis of the PTONA.

Having lost billions of naira due to the 98-day lockdown due to the COVID-19 pandemic, they had expected they would deploy the palliative to beef up their business but they are yet to benefit.

In a letter dated March 28, 2021 addressed to the Minister of State for Transportation,

Gbemisola Saraki, and signed by the Deputy President, Emeka Mamah, the group pleaded for the verification of two key issues as it concerned the funds.

First, PTONA asked the minister to correct apparent confusion in treating the N10 billion covid-19 palliative fund approved for Road Transporters as MSME Survival fund domiciled with the Federal Ministry of Industry, Trade and Investment.

The group also asked for immediate disbursement of the N10bn COVID-19 palliative fund to their members to prevent imminent collapse of interstate passenger transport companies in Nigeria.

According to PTONA, efforts made to secure an appointment to pay a working visit to the minister to discuss issues relating to the undue delay in disbursing the funds to road transporters was not granted.

“However, in your reply to our letter dated 3rd March, 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,” the group stated in the letter.

Lamenting further, PTONA insisted that the N10 billion Covid-19 palliatives fund approved by the Federal was totally different from the N60 billion MSME Survival Fund domiciled with the Federal Ministry of Industry, Trade and Investment, adding 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 with 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),” PITONA added.

Several efforts were made to reach the Director of Press in the Federal Ministry of Transportation, Mr Eric Ojiekwe, but he neither answered his calls nor responded to a text message sent to his phone.