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Truck Owners Under NARTO Threaten Strike from Monday
By Adedapo Adesanya
Members of the Nigerian Association of Road Transport Owners (NARTO) have vowed to suspend their operations from Monday, February 19 due to challenges in their businesses.
The National President of the group, Mr Yusuf Lawal Othman, in a statement in Abuja, declared that his members would park their trucks as the operating environment was no longer favourable to them.
“What we spend on the operation is more than what we get in total: both in local and bridging,” he said, noting that his members have been operating at a loss and it is no longer sustainable for them to endure the losses.
NARTO’s National President said, “We will have to suspend operations latest from now till on Monday. 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 the association itself, we are going to suspend operations on Monday.”
He stated that efforts were made to solicit the intervention of all the key stakeholders without any positive result, stating that letters were written to the Chief of Staff to President Bola Tinubu; Minister of Petroleum Resources; Director General, Department of State Services (DSS); Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) Chief Executive Officer; Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer; and the marketers.
“We have written letters up to the level of the Chief of Staff. We have written to the Minister of Petroleum Resources (Oil) I will send you a copy,” he added.
“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.”
He stressed that despite the notification to the above stakeholders, there had been no response.
He recalled that the same freight rate that was in force while former President Muhammadu Buhari was in government is still subsisting, adding that members have been enduring for several months
According to him, the previously fixed N32 Lagos to Abuja freight rate that was implemented while the dollar was N650 is still retained now that the Dollar was trading as high as N1,615.
He said, “Everybody is aware that all our consumables in terms of operation are not produced in the country.
“So, with the rate of dollars, every consumable has increased. But the freight they are paying us has been the same even during Buhari’s time.
“So, how is that feasible? During Buhari’s time, the dollar was N650. Today, the dollar is now N1,615. The average freight from Lagos to Abuja is N32.”
He further explained, “What I mean by local, you load Lagos, you discharge in Lagos. And bridging, you load from Lagos, you come to Abuja. Lagos to Lagos, we are paid N120,000.
“AGO (diesel) alone to distribute fuel within Lagos is N140,000 because it is N1,400 per litre. So, they give you N120,000 and you spend N140,000. So, how do you want to operate?” he quipped, “Talk less of cost of vehicles, cost of loading, driver’s allowance. That is for local. For bridging, Lagos to Abuja, they gave us N32.
“If you have a truck of 40,000 litres, you are talking of N1,280,000-N1,216,000. Less 5 per cent of the amount of N1,280,000 Withholding Tax N64,000. Less than 55,000 loading expenses and 15,000 driver allowance.
“Total expenses N134,000 while balance is N1,146,000. AGO is N1400 for 900 litres, totalling N1260,000. There is a total loss of N114,000. The diesel that you use from Lagos to Abuja is 900 litres. So when you use 900 litres at 1,400, that will be N1,260,000. So it is by far more than what is paid.
“Meanwhile the cost of a truck New truck head and tank is N95 million and used is N50 million. So imagine the Amount invested on each truck?”
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Lagos to Reform Korope, Danfo
By Adedapo Adesanya
The Lagos State Government has said it is ready to integrate mini and midi buses, popularly known as Korope and Danfo, into the state’s Bus Reform Initiative.
The Special Adviser to Governor Babajide Sanwo-Olu on Transportation, Mr Sola Giwa, made this known in a statement on Thursday in Lagos.
In the statement signed by the Director of Public Affairs of the ministry, Mrs Bolanle Ogunlola, the governor’s aide said the project was in the planning phase.
“The documentation process for bus operators interested in the scheme is ongoing, with 10 operators having submitted letters of intent to the state Ministry of Transportation, of which six have already been confirmed.
“All participating buses will undergo physical verification by the Vehicle Inspection Service and Motor Vehicle Administration Agency to ensure their roadworthiness and proper documentation.
“Once verified, the buses will be branded in the Lagos Metropolitan Area Transport Authority colours and will be equipped with validators,” he said.
Mr Giwa also said that a framework was being developed to integrate union dues deductions into an e- ticketing system, while addressing activities of hoodlums extorting money from transporters.
He said that the initiative would be test-run for three months before full implementation.
He said that full implementation of the reform would prevent mini buses from operating on the Lekki-Ajah Expressway.
Mr Giwa said that the buses would be deployed to inner routes and communities.
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Nigeria Gets €245m Chinese Loan for Kaduna-Kano Rail Project
By Adedapo Adesanya
China Development Bank (CDB) has recently granted the first tranche of a loan worth €245 million ($255 million) to support the Kaduna-Kano railway in Nigeria.
This will provide crucial financial backing to ensure the smooth construction of the transportation initiative, the CDB said on Tuesday.
The railway is on the list of practical cooperation deliverables released during the third Belt and Road Forum for International Cooperation in 2023.
The project has been making steady progress so far, the CDB said, adding that going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.
The Kaduna-Kano railway, spanning 203 kilometres in total, is set to provide a direct rail connection between Kano, an important northern city in Nigeria, and the country’s capital Abuja upon its completion, according to the CDB.
In July 2024, the Senate Committee Chairman on Land Transport, Mr Adamu Aliero reaffirmed the commitment of the National Assembly in ensuring that funds are made available for timely completion of the project.
Mr Aliero, while speaking to the press on the sidelines of the inspection at Maikarfi, Kaduna State, explained that the joint committee of both the House and also the Senate were on site to inspect the construction of a rail line between Kaduna to Kano.
“We have just taken a ride from Kano to Maikarfi. So far, we are impressed with what we have seen. We have seen a lot of dedication by the ministry and also by the contractor trying to deliver the project in time, I think 2025, they said.
“We understand that the deadline given to them is 2025 or 2026. But we are hoping that by 2025 if they sustain the tempo, they will be able to deliver. We will lobby our colleagues in the National Assembly to ensure that this project does not suffer from inadequate funding.
“There are other challenges connected with the project, particularly the funding arrangement, which we intend to discuss with the Minister of Finance, the Attorney General of the Federation, and also the Minister of Transportation,” he added.
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Future of Transportation is Electric Not Fuel, is Africa Ready?
By Timi Olubiyi, PhD
The year 2025 comes with a lot of hope and many aspirations, one of such is the increased benefits and possibilities around electric vehicles (EVs).
Even though, it is no more news and that it does not come as a surprise that the petrol and diesel-powered automobile/cars we have long been accustomed to still dominate the motoring landscape and indeed Africa with all the innovations and developments around mobility and transportation.
No doubt, the world is advancing clean and renewable energy options in particular around electric vehicles (EV) adaptations. More so the popularity of EVs is growing and the disruption is already rapid in developed economies. But what baffles the author is that Nigeria seems not to be bothered and we continuously move on with our daily tasks without referencing what happens around us globally.
It is a common knowledge that the way to go is net zero emissions by 2050 across all business units and supply chains including transportation. This is a key priority and a growing renewable energy footprint around the world but Africa is to the contrary from context observation.
From the records and with a follow up survey by the author in 2024 across the Republic of Ireland a small country with a population of less than 6 million, as it stands four out of every five homes now power their cars with 100% electric because the future of energy is electric.
Such acceptance can promote energy security, zero-emission, reduced energy cost and sustainable future easily without any economic concerns. Is this achievable in Nigeria in the nearest future? Achieving net-zero emissions in Africa presents significant challenge due to factors like limited access to reliable electricity, reliance on traditional fuels, and underdeveloped and old infrastructure.
In Nigeria and indeed most countries in Africa transportation sector is one of the largest contributors to global carbon emissions, with traditional gasoline(fuel) and diesel vehicles being primary sources of air pollution and environmental degradation.
In response to these concerns, the rise of electric vehicles (EVs) could represent a significant shift towards more sustainable and eco-friendly transportation options yet we are at the infant stage of adoption on the continent. As the world grapples with climate change and the depletion of fossil fuels, electric vehicles offer a promising solution to reduce pollution, enhance energy efficiency, and promote sustainability.
Therefore, this piece presents key benefits, and the need to explore policy options for future potential of electric vehicles in Nigeria and indeed on the continent of Africa.
From observation, one of the most compelling benefit of wide spread usage of electric vehicles is their environmental impact. Unlike traditional vehicles that run on internal combustion engines, EVs are powered by electricity stored in batteries, which means they produce zero emissions. This can significantly reduce air pollution, particularly in urban areas like Lagos, Port Harcourt, Abuja and the likes where traffic congestion and poor air quality are major concerns.
By shifting from gasoline(fuel) to electricity, EVs can help reduce the number of harmful gases, such as carbon dioxide (CO2), nitrogen oxides (NOx), and particulate matter, which are linked to health challenges and serios climate change. Emissions, primarily carbon dioxide is a key driver of climate change. The gas is usually trap heat in the atmosphere gradually warming up the planet and causing intense heat wave and disruption of the ecosystems.
So, to reduce the emissions of CO2 from combustion engines, working by burning fuel and overheating with high engine noise, electric vehicles are desirable. Because they more energy-efficient compared to their gasoline-powered counterparts, more so, EVs are with less maintenance culture and repair expectations are low.
In fact, EVs are more cost-effective in the long run, despite high initial purchase price because over time the operational costs of running are lower. Believe it or not, EVs have fewer moving parts compared to conventional cars, where there is no need for oil changes, oil filters and radiator or coolants.
In fact, the brake systems tend to last longer because of regenerative braking technology, a feature common in many electric vehicles. The cost of electricity for charging is also typically lower than the cost of the usual fuel or diesel, further reducing the lifetime costs of owning an EV.
With all the aforementioned the future of electric vehicles looks promising but technological advancements in battery storage, such as solid-state batteries and faster-charging technologies, are expected to improve to enhance the overall EVs performance, its affordability, and convenience.
As the global demand for clean energy grows globally, it is the hope of the author that governments in Africa in particular Nigeria will step up their efforts to encourage the adoption of electric vehicles. Though effort on Compressed Natural Gas (CNG) promotion is high in Nigeria in recent times which is a clear alternative to high cost of fuel currently but the real global standard and future of transportation is electric.
Many countries have now introduced stricter emissions regulations, offering financial incentives such as tax credits, rebates, and subsidies to make EVs more accessible to consumers Nigeria should not be an exemption, our government can also initiate similar policies.
Additionally, several governments have set ambitious goals to phase out the sale of new gasoline and diesel vehicles in favor of zero-emission models EVs within the next few decades, Africa can also start promoting this.
In addition, businesses and investments drive can be channeled into this developing critical area. Such as investment in home charging solutions, public charging infrastructure,wide spread charging stations, encouraging car manufacturers and private companies to set up assembling plants in Africa countries.
Investing inhome charging solutions, will make it easier for individuals to charge their vehicles overnight. Theseinvestment options and widespread infrastructure will help reduce range anxiety and make electric vehicles a more viable option for everyday consumers in Africa.
While challenges such as charging infrastructure, battery costs, and range limitations remain, ongoing advancements in technology, along with supportive policies and growing consumer demand, are driving the transition toward a cleaner, more sustainable transportation systemthios can also happen in Africa.
As electric vehicles become more affordable and accessible, they have the potential to significantly reduce our reliance on fossil fuels, improve air quality, and create a more sustainable future for generations to come. Good luck!
How may you obtain advice or further information on the article?
Dr Timi Olubiyi, an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University, Nigeria. A prolific investment coach, adviser, author, columnist, seasoned scholar, Member of the Institute of Directors, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: [email protected], for any questions, reactions, and comments.
The opinions expressed in this article are those of the author- Dr Timi Olubiyi and do not necessarily reflect the opinions of others.
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