Drivers decry high cost of Edo cab scheme

by Alexander Okere

Some Comrade Cabs on display.
| credits: Alexander Okere

Beneficiaries of the Comrade Cabs Scheme, an initiative of the Edo State Government to cushion the effect of the ban on commericial motorcycle operation in Benin, on Tuesday decried the high payment levied on them by the leasing company.

The spokesman of the taxi drivers, who were formerly commercial motorcyclists (okada riders), Peter Adoroh, told PUNCH Metro that the cabs were given to them at the cost of N1.5m at the inauguration of the scheme by Governor Adams Oshiomhole on May 14, 2014.

The former okada riders said they were later told that the cost of the cabs was N2.6m by the leasing company, C & I Leasing Plc; an amount which they said would “enslave” them.

The beneficiaries therefore urged the governor to intervene so that the cost, which they said was likely to work against the scheme, could be reversed.

Adoroh said, “Today, the beneficiaries are compelled to pay a total sum of N2.6m and daily balance of N3,000.

“The irony of it all is that the same leasing company supplied Ikpoba-Okha Local Government Area, where the beneficiaries are paying N2,000 daily to effect N1.9m in three years lease period.

“The total we are expected to pay should be made known to us the beneficiaries. The environment should be made conducive for us to work.”

The beneficiaries said several attempts to get the intervention of the ministry of transport proved abortive.

The governor, who inaugurated the scheme on May 14, 2014, provided a 15 per cent subsidy for the beneficiaries, which he said the drivers were not expected to pay back.

Oshiomhole had said, “Government gave 15 per cent subsidy on the price of each vehicle and the subsidy is a grant that the Edo State Government is giving to each of the beneficiary.

“We are not expecting them to pay back to the government of Edo State.”

But the Commissioner for Transport, Omo Ojo, told our correspondent in a text message on Tuesday that the government contributed 16 per cent on each car to support the beneficiaries.

Ojo said beneficiaries were meant to pay the balance for the cabs in addition to an interest charged by the leasing company. He, however, said government was looking for ways to make further reductions.

“The scheme is in partnership with C & I leasing. Edo State contributed 16 per cent on each car to support the beneficiaries. The balance is to be paid by the leasing company.

“However, government is finding a way to support the cab owners with further contribution to reduce their total payment at the end of the repayment,” the commissioner said.

The C & I Leasing Operations Officer, Prince Okoro, said the cabs cost N2,595,000, including other charges ranging from five percent insurance to 18 per cent interest rate from a private commercial bank.

Okoro said that although the government paid 15 per cent of the cost of each of the cabs (N1,750,000), excluding the sundry charges, the beneficiaries were to pay the remaining 85 per cent for which they signed.

He said, “We have a comprehensive insurance on each of the vehicles.

“After the government paid 15 per cent cash to C & I leasing, the balance of 85 per cent was sourced from a bank through a loan with an interest of 18 per cent.

“When we summed up all these, we came up with N3, 000 daily; from Monday to Saturday.”

Okoro added that the 15 per cent paid by the government only covered the cost of each cab and not the total cost for the scheme.

@punchng.com