Investigation Launched Into Delayed Resolution of ‘Taxi Nafa’ Loan Issues

Transport Minister Mohamed Saeed has assured that a fair resolution will be reached regarding public concerns over the “Taxi Nafa” loan scheme, amid complaints that participants are being asked to repay loans for vehicles that remain unregistered.

The minister’s remarks were made in response to a letter circulated on social media by Adam Saleem of Mutheegē, HA. Dhidhdhoo, who stated that the issue has remained unresolved for more than a year.

In his letter addressed to the Minister, Adam Saleem said lenders have repeatedly urged individuals who obtained vehicles through the scheme to begin repayments despite the vehicles not being registered. He highlighted the financial hardship faced by borrowers and called for urgent intervention, also requesting a meeting with the Minister to discuss the matter.

The “Taxi Nafa” loan scheme was introduced to support Maldivian citizens in establishing taxi services within the Greater Malé Region. However, registration delays linked to administrative setbacks within relevant government institutions have prevented many vehicles from becoming operational. Borrowers argue that repayments are unreasonable as they are unable to generate income without the necessary permits to operate.

The Minister stated that he considers it a priority to examine the concerns raised and to identify the fastest possible solutions to move the matter forward. He also confirmed that officials responsible for transport administration have been instructed to investigate the issues raised.

The letter further outlined legal and financial challenges faced by loan recipients due to the prolonged delay in vehicle registration and called for a prompt and lasting resolution.

The Drivers Association of Maldives has previously described the situation as a “scam”, stating that drivers are being required to repay loans for vehicles that remain unused and unregistered for more than a year.

The loan scheme was introduced by the former SME Development Finance Corporation on 4 September 2023. However, funds were disbursed only after the change in administration, coinciding with parliamentary elections.

Despite continued complaints, the vehicles remain unregistered and unusable. Taxi drivers staged protests over the issue as recently as late 2024.

The Drivers Association has stated that some participants have incurred loans of up to MVR 179,000 without receiving usable vehicles, describing the situation as a failure of state institutions to properly support taxi operators. More than a year on, affected drivers say no concrete solution has yet been implemented to address their grievances.