The Nigerian Association of Road Transport Owners (NARTO) has announced its decision to halt operations starting today (Monday). Yusuf Othman, NARTO’s national president, conveyed this information through an official press statement from Abuja. Othman emphasized that the decision to suspend truck operations is due to the association’s financial challenges, stating that operational costs exceed total income, both locally and in bridging.
Othman explained, “We cannot continue to operate at a loss. Most people have parked. A lot more are going to the park. But from the point of view of the association itself, we are going to suspend operations on Monday.”
The national president highlighted the financial struggle faced by NARTO members, indicating that sustained losses have rendered their operations unsustainable. Despite efforts to seek intervention from key stakeholders in the Federal Government and the industry, there has been no positive outcome. Letters expressing the association’s concerns have been sent to officials, including the Chief of Staff to President Bola Tinubu, Minister of Petroleum Resources, Director General of the Department of State Services (DSS), CEO of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), CEO of the Nigerian National Petroleum Company Limited (NNPCL), and major marketers.
Othman revealed, “We have written letters up to the level of the Chief of Staff. We have written to the Honourable Minister of Petroleum Resources. We have written to DG SSS. We have written to the GCEO. We have written to the Authority Chief Executive. We have written to the Major Marketers.” Despite these notifications, there has been no response.
The national president expressed dissatisfaction with the unchanged freight rates, noting that the same rates that existed during President Muhammadu Buhari’s administration persist. He pointed out that the N32 freight rate for transporting goods from Lagos to Abuja, set when the dollar was N650, remains unchanged even with the current exchange rate of N1,615.
Othman elaborated on the financial challenges, citing examples such as the cost of distributing Automated Gas Oil (AGO) within Lagos. He highlighted that the existing freight rates are insufficient to cover operational expenses, leading to substantial financial losses for NARTO members.
In conclusion, Othman emphasized the need for a reevaluation of the freight rates and operational costs to ensure the sustainability of road transport operations in Nigeria.
News Reporter: Tobi Adetunji: From The News Source: Techeconomy
