In a move that could disrupt supply chains and logistics nationwide, the Nigerian Association of Road Transport Owners (NARTO) has announced a temporary cessation of operations starting Monday.
The decision, revealed by Alhaji Yusuf Lawal Othman, NARTO’s National President, came through a press release from Abuja on Thursday, citing overwhelming financial challenges faced by truck owners.
Othman highlighted the stark reality of operational costs outpacing earnings, rendering the current situation unsustainable for members of the association.
“Our operational expenses have surpassed our revenue, leaving us with no choice but to take this step,” Othman stated, reflecting the gravity of the situation. He added, “Continuing to operate at a loss is simply not feasible. Many members have already halted operations, and more are likely to follow suit.”
Despite efforts to seek assistance from relevant authorities, including the Federal Government and industry stakeholders, NARTO has faced disappointment with a lack of response.
“We’ve reached out to key figures, including the Chief of Staff to President Bola Ahmed Tinubu and the Minister of Petroleum Resources, among others, but unfortunately, our pleas have gone unanswered,” Othman lamented.
Othman underscored the significant disparity between prevailing freight rates and escalating operational costs, emphasizing the unsustainable nature of the current situation.
“The discrepancies are glaring. While freight rates have remained stagnant over the years, operational expenses have surged, largely due to fluctuating dollar rates,” Othman explained, shedding light on the financial intricacies involved.
He further elaborated on specific examples, such as the rising costs of fuel distribution and expenses associated with bridging operations, which have contributed to the mounting financial strain on truck owners.
In conclusion, Othman emphasized the heavy investments required to maintain truck fleets, highlighting the economic burden borne by NARTO members.
