RTEAN Asks FG To Establish Bank of Transportation, Offers Loans at 4% Interest
- The Ogun State chapter of RTEAN called on the Federal Government to establish a dedicated bank to provide affordable loans to road transport operators
- The association said conventional bank lending rates of about 25% make it difficult for transport operators to remain profitable
- RTEAN also trained 20 members in conflict resolution and screened more than 100 people during a medical exercise
PAY ATTENTION: Mark Legit.ng as a preferred source, and our content will appear higher in your Google feed!
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Ogun State chapter of the Road Transport Employers Association of Nigeria (RTEAN) has called on the Federal Government to establish a Bank of Transportation to provide road transport operators with affordable loans.
The association's State Secretary, Aare Tiwalade Akingbade, made the appeal on Tuesday at its secretariat in Abeokuta, Ogun State.
Source: Getty Images
He said the proposed bank should offer loans at interest rates of between 4% and 9% to help operators acquire vehicles, expand their businesses and improve service delivery.
Akingbade said RTEAN had submitted several proposals to the Federal Government and expressed optimism that they would be considered, particularly the establishment of a dedicated financial institution for the transportation sector.
Why RTEAN wants lower lending rates
The state secretary said conventional banks' lending rates were too high for transport operators to repay loans and maintain profitable businesses.
He questioned why transport businesses should obtain loans at rates comparable to those charged to operators in sectors such as oil and gas.
“If you are in the road transportation business and have to obtain loans from the same financial institutions that lend to operators in sectors such as oil and gas, at interest rates of 25%, how do you expect to repay such loans and remain profitable?” he asked.
Akingbade stressed that the association was not seeking free money but affordable financing tailored to the needs of transport operators.
He said:
“We are not asking for free money. All we are asking for is a dedicated platform that will give transportation operators access to loans at affordable, single-digit interest rates of between four and nine per cent."
He added that an efficient, reliable and affordable transportation system was essential to economic development, noting that road transport connects passengers to other modes of transportation, including rail, water and air, DailyTrust reports.
RTEAN trains members, screens more than 100 people
In a related development, 20 members of the Ogun State chapter of RTEAN received certificates after completing a three-day conflict resolution training programme organised in collaboration with the Federal University of Agriculture, Abeokuta (FUNAAB).
The programme was facilitated through FUNAAB's Institute of Communication and General Studies under its Peace and Development Studies Programme.
Source: Getty Images
The certificates were presented at Tuesday's meeting by the association's Deputy Chairman (Administration), Otunba Segun Johnson, on behalf of the State Chairman, Alhaji Akibu Titilayo Efele.
Akingbade said the training was designed to help members resolve disputes, improve their relationships with passengers and manage their responsibilities as transport operators and employers.
He added that participants could further their education through advanced certificate and diploma programmes in conflict resolution.
Zenith, GTB, UBA, others release new interest rates for loans
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has released the latest lending rates following its decision to cut the interest rate by 50 basis points to 26.50% from 27%.
The apex bank announced the new MPR rates during its 304th Monetary Policy Committee (MPC) meeting.
The CBN governor, Olayemi Cardoso, said all members of the MPC unanimously agreed upon the decision.
Source: Legit.ng
