Tag: NARTO

  • Fuel tanker owners to lose N300bn over proposed truck ban

    Fuel tanker owners to lose N300bn over proposed truck ban

    The National Association of Road Transport Owners (NARTO), has expressed fear over the Federal Government’s plan to ban 60,000 litres capacity tankers, following the rising cases of accidents involving fuel tankers.

    NARTO President, Yusuf Othman in an interview NAN  in Abuja on Sunday, said such a move would cause a loss of N300b worth of investments by the tanker owners.

    The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is considering placing a ban on 60,000 litres capacity petroleum tankers, due to incessant accidents/deaths involving them in the country.

    The NMDPRA had proposed a restriction of petroleum tankers capacity to a maximum of 45,000 litres to reduce accidents ‘cases, explosion and fatalities.

    Apart from determining appropriate truck carrying capacity, the NMDPRA had put in place other safety measures, including installation of anti-spill safety valves in tanker trucks, public sensitisation against scooping at accident scenes and regular stakeholders’ meeting, among others.

    The regulator is of the view that the noncompliance with the established safety measures had led to the recurrence of these accidents.

    Othman, however, said the cause of the accidents was not the usage of 60,000 litres tanker capacity, but could be  attributed to the condition of the roads, condition of the vehicles and the drivers.

    He said that 2,000 trucks with 60,000 litres capacity worth N150m each, amounting to N300b investments were being involved in the transportation of petroleum products nationwide.

    Othman explained that some of these investments were being financed by the commercial banks, while some were personal investments of the tanker owners.

    “Every truck owner is an investor and every investment is done with a view to get a return.

    “We have about 2,000 trucks worth about N150 million each, which is about N300 billion.  It will not be fair for them to go down the drain; we are trying to see if there is a win-win situation.

    “We all are not happy with the recent development that led to loss of lives and we pray that it will not be repeated again. It’s a huge monumental loss, as well as a monumental loss of investments.

    “However, as much as we appreciate the concern of the public and government in this respect, we believe that the 60,000 litres tanker capacity is not the cause of the accidents because the weight is on the back axle.

    “In such an accident, people rush to start scooping and in the process of doing that the explosion occurs,’’ he said.

    He appealed to the Federal Government to consider a buy-back policy to help the investors, if it wishes to phase out completely the usage of 60,000 litres tanker capacity in the distribution of petroleum products.

    Speaking on safety regulations and measures, he said the association had ensured compliance by the members and strived to ensure that only licensed drivers who were physically and mentally okay with good health and vision plied the road.

    He further said that the association trained and retrained tanker drivers on regular basis, and also strived to ensure that the trucks were inspected twice a year to be road worthy.

    He maintained that the habit of scooping the petroleum products at the scene of the accidents had resulted in the monumental loss of lives, hence general public enlightenment became very apt.

    “If the capacity is reduced to 45,000, the truck cannot have a balance; reducing from 60,000 to 50,000 litres capacity could be fine, but not 45,000 litres capacity.

    “All the 60,000 litres trucks are new, that is why they are able to carry 60,000 litres of petroleum products. Old trucks cannot carry 60,000 litres of products and are phased out because they don’t make any economic sense.

    “We support the government and also want the government to support our private investments.

    “We are still talking with the Federal Government, and I believe we will resolve it amicably,’’ he said.

  • Implement VREG policy at no cost – Transporters beg FG

    Implement VREG policy at no cost – Transporters beg FG

    The Nigerian Association of Road Transport Owners (NARTO) has appealed to the federal government to implement the National Vehicle Registry (VREG) Policy at no cost to transporters.

    TheNewsGuru.com (TNG) reports Alhaji Yusuf Othman, National President of NARTO made the appeal at a sensitisation seminar focused on VREG on Friday.

    The seminar was attended by decision-makers, vehicle users, law enforcement agencies and other stakeholders from Lagos, as well as heads of agencies from Ondo and Ekiti States.

    Recall that the Federal Ministry of Finance launched the VREG policy in 2021 to enhance revenue generation within the motor vehicle administration ecosystem.

    The National Vehicle Registry (VREG) is a centralised database of all vehicles in Nigeria, using the unique Vehicle Identification Numbers (VIN) to store detailed information on vehicles.

    The VREG is connected to multiple global VIN databases and the network interconnectivity with Nigeria helps facilitation of global trade and crime fighting, amongst others.

    NARTO National President noted that the association, which controls 90 per cent of vehicles used for cargo transportation, is a key stakeholder in national revenue collection.

    Othman, represented by a member of the association, Mr Stephen Okafor, appealed for the implementation of VREG at no cost to transporters.

    Speaking at the seminar, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, however, said the National Vehicle Registry (VREG) Policy was envisaged to plug revenue leakages associated with vehicle importation and improve operational efficiency in motor vehicle administration across the country.

    In his keynote address at the sensitisation seminar, Edun explained that the policy would also offer stakeholders benefits such as improved access to credit, easier vehicle trade, better vehicle lifecycle management and enhanced insurance coverage.

    The Minister, represented by Hajia Jumai Katagum, Director of Public-Private Partnerships (PPP), called for stakeholder collaboration to optimise and achieve the objectives of VREG.

    He stressed the need for integration among key stakeholders, while explaining ongoing efforts to close existing gaps in vehicle administration.

    The minister noted that VREG addresses the challenges caused by Nigeria’s status as the largest importer of vehicles in Africa, with over 15 million operational vehicles.

    Edun explained that issues like customs duty evasion, inadequate data for vehicular policy, revenue leakages, vehicle theft and ineffective vehicle insurance coverage were tackled through VREG.

    Also, Gov. Babajide Sanwo-Olu if Lagos, represented by Oluwaseun Osiyemi, Commissioner for Transport, commended the government for bringing stakeholders together to enhance understanding of VREG.

    He noted that VREG would provide all levels of government with an accurate database for real-time vehicle assessment and crime prevention.

    Sanwo-Olu added, “We are confident that with continued support, VREG will revolutionise vehicle management across the country, driving economic growth and development.”

    The Comptroller General of Customs, Adewale Adeniyi, represented by Deputy Controller of Customs, Rahmon Akintola, also highlighted the potential for enhanced customs operations through collaboration with other stakeholders.

    Mr Emenike Nwokeoji, President of the Association of Nigeria Customs Licensed Agents, pledged the association’s support for VREG’s success, saying,”no imported vehicle in the country is beyond traceability”.

    During a presentation titled “Optimising Nigeria’s Vehicular Ecosystem for National Economic Development”, Mr Dennis Obeto, Managing Director of Fourcore Technology Solutions Ltd., stressed the need to make Nigeria’s motor vehicle ecosystem safer and more efficient.

    Obeto, a private sector collaborator on the VREG project, explained more on the the platform’s functionality and its role in transforming the vehicular ecosystem.

  • UPDATED: Real reason NARTO called off strike

    UPDATED: Real reason NARTO called off strike

    The Nigerian Association of Road Transport Owners (NARTO) has called off its strike as the Federal Government has announced payment of their bridging claims.

    The Federal Government said though NARTO’s issues were purely commercial but its intervention and transportation claims payment (though figure undisclosed) became necessary to ensure fuel availability nationwide and maintain a business friendly environment.

    Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), announced this after a meeting with some major oil marketers, hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday in Abuja.

    The oil marketers included members of NARTO, Petroleum Tankers Drivers (PTD), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Energies Marketers Association of Nigeria (MEMAN).

    Others are: representatives of the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Depot and Petroleum Marketers Association of Nigeria (DAPMAN), among others.

    The meeting was a continuation of the meeting which began on Monday to resolve issues hindering the operations of the oil marketers who embarked on strike.

    Fuel queues and emerging scarcity were witnessed at fuel stations in the FCT and nationwide as a result of the suspension of fuel transportation and distribution by NARTO.

    The strike was in fulfillment of their threat to suspend lifting of petroleum products nationwide and down tools from Monday due to high cost of operations and maintenance.

    NARTO and the oil marketers had complained of the high cost of diesel being used by their trucks to transport products across the country and challenges facing their freight rate payment (bridging claims) among others.

    The minister, however, said after due consultation with all stakeholders, they resolved to call off the strike, adding that all the issues they raised had been addressed.

    “Going forward we will keep our commitments, we have started payment of some bridging claims as they raised; as we get more money, we will continue to pay them.

    “We are also committed; by March we would have been done with the reconciliation to ascertain the level of liability, that will reveal members who have supplied products across the country,’’ he said.

    The minister, while thanking the oil marketers for their patriotism and commitment in the industry pledged that the engagement would be sustained to ensure friendly environment for businesses to thrive.

    The Chief Executive, NMDPRA, Mr Farouk Ahmed, said the increase in the bridging claims (freight rate) was as a result of the high cost of diesel to fuel trucks to transport fuel.

    He said the rate was last increased in March 2022 during the subsidy regime, adding that the price of diesel which was N700 per litre as at that time has increased to N1, 400 currently.

    “So, they were requesting increase but as a regulator we are not going to enforce any price increase because the market is deregulated.

    “Therefore, they should reach out to the marketers and negotiate on one on one basis. But the marketers were reluctant to negotiate, which resulted to the strike.

    “After meeting with the minister, as much as we understand the issues of NARTO, the issues were resolved. We don’t want Nigerians to continue to suffer because they have sacrificed more because of the economic downturn,’’ he said.

    Also speaking, NARTO President, Yusuf Othman, said the engagement did not concern pump price of fuel as the price remained the same, but its agitation bothered on freight rate for the transportation of fuel.

    “Fuel has to be transported from the depot to stations before being sold, if the amount that is paid is not adequate to move the product to the station you will not find it.

    “Going forward, we will continue to negotiate with the marketing companies based on economic realities. The pump price of fuel does not affect the increase in the freight rate,’’ he said.

    Othman confirmed improvement in the new rate, though undisclosed, and expressed the hope of receiving the claims before week end.

    He urged members to ensure normalcy considering the pains of Nigerians.

  • BREAKING: NARTO suspends nationwide strike

    BREAKING: NARTO suspends nationwide strike

    The Nigerian Association of Road Transport Owners (NARTO) has suspended its planned nationwide strike following intervention by the Minister of State Petroleum Resources (Oil), Heineken Lokpobiri.

    NARTO members had threatened to shut down all over the country beginning Monday over the high cost of Automotive Gas Oil also known as diesel which is used to fuel their trucks for the movement of petroleum products across Nigeria.

    Like Premium Motor Spirit popularly known as petrol which now sells at over N600 per litre, the price of diesel has skyrocketed of late, no thanks to the forex crisis in the country.

    At the moment, diesel sells above N1,250 per litre in Nigeria.

    Details to follow…

  • NARTO lauds FG over review of petrol freight rate

     The Nigerian Association of Road Transport Owners (NARTO) has lauded the Federal Government over the upward review of the freight rate for Premium Motor Spirit (PMS).

    NARTO’s President, Alhaji Yusuf Othman, told newsmen on Friday in Lagos that the review would cushion the effect of the rising cost of diesel on the operations of transporters.

    Othman said: ” It is a very good development and it shows that government is being proactive.

    “It will go a long way in cushioning the effect of the diesel cost on our operations.

    “Like we keep saying, diesel is more than 70 per cent of our operational cost. So it was certain that the high diesel cost would affect our operations.

    “You cannot take products from Lagos to Abuja and other areas while running at a loss.”

    He said NARTO members had been struggling to operate, adding that normalcy would soon return to the petroleum products distribution sector with the intervention.

    While noting that the government was yet to communicate the new freight rate to marketers and transporters, Othman expressed optimism that the increment would help reduce operational losses.

    He also assured Nigerians that the scarcity of petrol being experienced in Abuja and other parts of the country would soon abate.

    “More of our members will resume bridging, which is the transportation of petroleum products from depots to other areas across the country following this development.

    “NARTO members are ready to reciprocate government’s gesture. We are very happy with this timely intervention which is a good development for the industry, ” Othman said.

    Newsmen reports that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had in a statement on Thursday said President Muhammadu Buhari had approved the upward review of the freight rate.

    The statement said the review was necessitated by the upswing in the global price of petroleum products, especially Automotive Gasoil (Diesel) and its implication on the cost of transporting PMS nationwide.

    It said the revised freight rate would take effect from June 1 while still maintaining the current regulated PMS pump price of N165.00 per litre.

    “We believe the increase in transporters freight rate will further encourage NARTO and other stakeholders to deploy more trucks to transport PMS nationwide to ensure adequate supply of the product,” the statement said. 

  • Petrol freight rate rises by N10 per litre

    The freight rate of petrol, otherwise known as Premium Motor Spirit (PMS) has been increased by the Federal Government by N10 per litre.

     

    It was gathered that a circular on the increase, which took effect June 1, would be issued today.

     

    President, Nigerian Association of Road Transport Owners (NARTO), Alhaji Yusuf Othman, said the increase was because most transporters could not afford the cost of diesel that used to be N600/litre as of last month.

     

    The transporters subsequently stopped lifting the product.

     

    This has culminated in its scarcity in the Federal Capital Territory (FCT) and its environs where queues around retail outlets have persisted in the last few days.

     

    It has also triggered black marketing of the PMS with some traders vending it for between N3, 000 to N4,500 per litre in plastic containers.

    Petrol

     

    According to the National Vice President- Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi, the reason why petrol scarcity remained unabated yesterday was due to the high cost of diesel, “It has soared to N800 per litre.”

     

    According to him, it is no longer sustainable to transport petrol with the present cost of diesel.

     

    He noted that it takes about 1,000 to 1,100 litres to fuel a truck with diesel from Lagos to Abuja.

     

    Maigandi explained that when multiplied by N800 per litre, it becomes N800, 000 or N880, 000 diesel for the trip, while the government had been paying N600,000 for the diesel.

     

    There was however some respite to that high cost yesterday as Othman revealed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved N10 per litre an increase in freight rates across the board for the transporters.

     

    He added that the association broke the good news to its members yesterday and asked them to resume work.

     

    In his words: “Cost of diesel has made so many transporters parked their trucks. But then the government has come to our rescue. The government has approved N10 across the board. “This is effective from 1st of June. So, the circular will be released tomorrow (today Monday) to that effect.

     

    “And we have called on our members to come out and reciprocate this kind gesture at this difficult time. That is the true situation. The government themselves will release an official circular tomorrow (Monday).”

    Petrol

     

    NMDPRA raised the freight rates to N25/litre owing earlier this year to transporters demand for an upward review.

     

    NMDPRA’s General Manager, Public Corporate Affairs, Mr. Apollo Kimchi, confirmed that the management of the authority was in a meeting yesterday working on the rate.

     

    He noted that the new rate would be made public by 10am (today) Monday. Kimch was however silent on the amount.

     

    ‘They said they are still working on it. They are working on something but it is not yet concluded. They said by 10:00am tomorrow they will be able to come up. Presently, they (management staff) are in the office,” the spokesman said.

  • NARTO, NUPENG-PTD suspend planned strike as NNPC intervenes

    NARTO, NUPENG-PTD suspend planned strike as NNPC intervenes

    The Nigerian Association of Road Transport Owners, National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum Tanker Drivers (PTD) have suspended their planned strike after an intervention by the NNPC Ltd.

    The parties also pledged collaboration on ensuring nationwide availability of petroleum products.

    The suspension notice was made known in a communique following a critical stakeholders engagement between the NNPC Ltd., the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), PTD, NARTO, and NUPENG on Thursday, in Abuja.

    The communique was jointly signed by Malam Mele Kyari, Group Managing Director, NNPC, Otunba Salmon Oladiti, National Chairman PTD , Mr Yusuf Otthman, NARTO President Comrade Williams Akporeha, NUPENG President and Abiodun Adeniji, Executive Director, Finance and Admin, NMDPRA.

    NUPENG and PTD had declared to embark on strike based on its investigations which revealed that officials of the Federal Ministry of Works and Housing were currently diverting the fund provided by NNPC Limited for the rehabilitation of 21 critical highways.

    On Road Rehabilitation, the communique said NNPC provided updates on the current status of the road construction and rehabilitation projects under the road infrastructure tax credit scheme.

    It said the NNPC assured the stakeholders that the funding earmarked for the 21 critical roads would be applied for the intended purpose only.

    ”To allay the fears of the stakeholders, NNPC and all parties commit to working together in the monitoring of the road projects,” it stated..

    On review of freight rate for transporters, the communique noted that the stakeholders requested for completion of the ongoing discussion on the review of the freight rates to cover operational costs.

    It noted that the stakeholders highlighted the precarious situation that truck owners faced in the light of current economic realities.

    It further noted that the NMDPRA informed the meeting that a committee was constituted to review the rates which included PTD, NARTO and NUPENG in addition to other stakeholders.

    It stated that all parties agreed to work expeditiously towards concluding the review of the freight rate and make recommendations to the Government.

    According to the communique, the Authority is to advise on definite close-out date during the week of Feb. 21.

    ”The parties also agreed to foster collaboration on ensuring nationwide availability of petroleum products.
    ”All parties agreed to work closely to ensure efficient distribution of petroleum products across the country,” it stated.

  • Fuel scarcity imminent as NARTO begins nationwide warning strike today

    Fuel scarcity imminent as NARTO begins nationwide warning strike today

    Petrol scarcity is imminent as the Nigerian Association of Road Transport Owners (NARTO) on Monday announced plans to proceed on a warning strike today (Tuesday).

    NARTO is the umbrella organisation of commercial vehicles owners engaged in the haulage of petroleum products, cargoes, and movement of goods and passengers within the country and the West-African sub region.

    Its National President, Alhaji Yusuf Lawal Othman, who spoke to reporters in Abuja, said the association was shocked by the recent Federal Government’s decision to ban petroleum trucks above 45,000 litres capacity from plying the roads.

    Owing to the ban, he said the association would proceed on a warning strike today and issue a 10-day ultimatum on September 24, which would be followed by an indefinite strike.

    The NARTO chief said: “In view of the above, we are, therefore, constraint to allow the decision of our members to park their trucks as from tomorrow 22nd to 23rd September 2020, prevail as warning, and furthermore, issue 10 days ultimatum with effect from September 24, 2020 for a full blown withdrawal of service.

    “If such scenarios occur, we earnestly plead with those who will lose employment, income and general public that will be negatively affected by this avoidable situation.”

    According to him, the sudden ban is considered highly insensitive and unappreciative of the efforts and contributions of the NARTO members as businessmen and investors in the very critical and sensitive distribution and supply chains of petroleum products across the country.

    He recalled that not too long ago and following the total collapse of petroleum products pipelines and strategic depots across the country as a result of the economic sabotage of the vandals, there was the painful era of petroleum products scarcity across the country.

    Othman said it was in response to the socio/economic challenges of the scarcity era that the government in power then pleaded with private investors to assist in ameliorating the situation by ensuring that product scarcity is brought to the barest minimum.

    He added that it was in response to the national call for service and in line with this mandate then that many of the association’s members took the initiative to invest heavily in expanding their fleet of various capacities to deliver products to all nook and crannies of this country.

    He said the members took loans from various commercial banks with very high interest rates and with no form of support from government.

    Othman said the measure was in national interest and the association achieved the desired goal of removing scarcity of petroleum products and its attendant long queues from the streets and communities.

    The ban, he said, “is therefore distressing and discouraging that when, it is discovered along the line that one of the side effects of our efforts to fix the problem is the fact that our roads were not built to accommodate vehicles that carry loads in excess of 30 tons and the new government now want to impose and introduce a new policy about maximum capacity on our roads, the government is doing so without any consideration for the plights of our members and other attendant effects.”

    The leadership of NARTO, according to him, is not in any way against the decision of the Federal Government to ban the use of truck more than 45,000 litres capacity in the conveyance of petroleum products considering the dilapidated state of Nigerian roads but it is particularly concerned about the sudden and prompt nature of the ban.

    He said the association considered the approach to be highly insensitive to the huge investments the Owners of these trucks have made and debts they incurred in executing the mandate given by previous administration.

    He said: “This move by the government will definitely be counterproductive considering the fact that sudden withdrawal of these trucks will impacts heavily and negatively on the operations of our members and the withdrawal will also create heavy gaps in the supply and distribution chains bearing in mind the fact that NARTO, being the owners of these trucks, are integral part of the supply and distribution of petroleum products across the nation.

    “We wish to also remind the government to be mindful of the coming ember months that is characterised by heightened activities, thus requiring the use of such high capacity trucks to curb the scarcity.

    “Most importantly, our concern is also the fact that the suddenness of the action is a great discouragement to any form of investment in the country in view of the fact that our members secured bank facilities for the procurement of these trucks which normally attracts high interest rates, thus adding extra financial burden on our members.

    “We also want to use this medium to draw the attention of the federal government that if these trucks are withdrawn suddenly and promptly as being demanded by the government’s decision, it would create another side effect of avoidable unemployment, as it is estimated that more than 40,000 drivers/drivers mate and artisans would lose their jobs.”

    Othman said NARTO members are already discouraged and distressed even with the fact that the transport sector which is one of the sectors that are worse hit by the COVID-19 pandemic because of the total restriction of movement, the Federal Government refused to extend some intervention to the sector as done to many sectors of the economy including aviation, agriculture and others.

    “In the light of the foregoing and the fact that we understand the reasons behind government decision, we equally demand that government should be more empathetic and sensitive to the plight of our members and the very harsh economic situation of the time by giving us ample time to source for money to re- engineer all affected trucks and operations accordingly.

    “We can assure you that none of the major transport companies across the country can continue any form of operations with this policy within this short time frame,” Othman said.

  • Edo Govt. to introduce scratch cards for revenue collection

    Edo Government says it is planning to introduce the use of scratch cards as a mode of collecting revenues in the transport sector, to eliminate revenue diversion and ensure transparency.
    The Deputy Governor, Mr Philip Shaibu, said this when he received state officials of the Nigeria Association of Road Transport Owners NARTO in Benin on Tuesday.
    He expressed optimism that the new system would also ease the process of revenue payment.
    Shaibu explained that the process would have a tracking system that would ensure remittance of all monies collected to government coffers and completely eliminate extortion.
    He thanked the association for its activities in the state.
    Shaibu urged officials of the association to study the harmonised revenue bill to see areas they could partner with the state government.
    Earlier, the Chairman of the association, Mr Anthony Oziegbe, said officials of the association were at the Government House to see areas of possible partnership with the state government.
    He said that the association was currently partnering with the Federal Government in road repairs across the country.