The National Association of Road Transport Owners (NARTO) has issued a stern warning that its members may suspend operations due to increasing operational costs, threatening a shutdown on Monday if no resolution is reached. Alhaji Yusuf Othman, the National President of NARTO, highlighted the unsustainable losses members are facing, emphasizing that operating at a deficit is no longer viable.
Othman explained that operational expenses exceed earnings, necessitating the suspension of operations. Despite efforts to seek intervention from various government agencies and officials, including the Chief of Staff to the President, Minister of Petroleum Resources, and others, no positive outcomes have been achieved.
He lamented that freight rates have remained unchanged despite shifting economic realities. The freight rate from Lagos to Abuja, set during President Buhari’s tenure, remains the same even though the exchange rate has significantly increased from N650 to N1,615 per dollar.
The discrepancy between operational costs and earnings is stark. For instance, the cost of diesel alone for distributing fuel within Lagos exceeds the earnings from freight charges. Othman provided detailed breakdowns, illustrating how expenses far surpass earnings, resulting in substantial losses for NARTO members.
He emphasized the significant investment required for each truck, highlighting the financial burden on operators. The disparity between operational costs and earnings underscores the urgent need for intervention to address the challenges facing NARTO members and prevent further economic strain.