The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to involve local automobile companies in the production of the proposed 3,000 units of 20-seater buses fueled by compressed natural gas (CNG).

This measure aims to improve transportation efficiency throughout the country.

While making this appeal, MAN also applauded President Bola Tinubu's commitment to allocate N75 billion over the next eight months to support the manufacturing sector. This move is part of the government's broader plan to mitigate the impact of fuel subsidy removal on Nigerian citizens.

In a recent nationwide broadcast, President Tinubu specifically pledged to reserve N75 billion for 75 manufacturing enterprises, allowing them to access N1 billion credit at an interest rate of 9% per annum from August 2023 to March 2024.

This financial intervention is expected to accelerate growth and transformation within the manufacturing sector.

The Director-General of MAN, Segun Ajayi-Kadir, expressed his positive reaction to the broadcast, highlighting that such interventions will alleviate hardships faced across various socio-economic segments.

Furthermore, he emphasized that these initiatives will lead to widespread and far-reaching benefits for the nation.

His words: “We had indicated that the best palliative is to remove the binding constraints that have bedevilled the productive sector so that jobs can be created and guaranteed, salaries can be paid and production capacity boosted, with the attendant lower prices and improved availability.

“This is far more beneficial than palliatives that would only give nominal relief.”

Ajayi-Kadir further stated: “The promise that 75 manufacturing enterprises will access N1 billion credit at 9% interest rate per annum and working capital is commendable. It is a good start to address the dearth of loanable funds in the face of rising lending rate occasioned by the continued increase in the monetary policy rate (MPR) by the Central Bank of Nigeria (CBN).

“It is however very important and critical that the vehicles for the delivery of these loans should be carefully selected and the implementation diligently monitored. The Bank of Industry (BoI) has shown excellent performance as an appropriate transaction structure for such facilities.”

On the procurement of 3,000 buses, the MAN DG said: “It is equally important to ensure that the promised 3000 units of 20-seater buses be procured from indigenous automobile Industries.

“This is a golden opportunity for the federal government to demonstrate unfailing commitment to the implementation of the subsisting Executive Order 003, which prioritizes the patronage of made in Nigeria products.”