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NARTO Seeks Speedy Contract Awards

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The Nigerian Association of Road Transport Owners (NARTO) has called on the federal government to speed up the awards of the contracts under the NNPC Tax Credit intervention of N621billion and exercise extreme care in the supervision, monitoring  and payment so as to ensure value for money in contract execution

The group also threatened to park its trucks if the current rising cost of operation is not addressed by the federal government.

National president of NARTO, Alhaji Yusuf Lawal Othman, who revealed this at a press briefing in Abuja yesterday, noted that members are groaning under intense and harsh operating conditions, occasioned by acute shortage of working capital for the efficient running of operations.

He continued, “Another serious problem affecting our operations is the condition of the roads, many of which are in precarious condition.

Although we commend the federal government for the NNPC Tax Credit intervention of N621billion for the repair of 21 roads, they should speed up with the awards of the contracts and exercise extreme care in the supervision, monitoring  and payment so as to ensure value for money in contract execution.

This becomes imperative to avoid substandard or poor work execution. In fact, we recommend that a committee comprising of stakeholders should be set up to help in the supervision and monitoring exercise to ensure speedy completion of the work before the rainy season.”

Othman explained that in the year 2020, the cost of truck head was N20 million, while the present cost of truck head is N35 million, even as the cost of tank in 2020 was N8 million, as against the present cost which stands at N15 million.

He added that the present cost of tire for trucks is N150, 000, as against N35,000 it was sold in 2020, while battery presently costs N120, 000, as against N32,000 in 2020, excluding the cost of maintenance, such as spare parts, gear oil, lubricants and overheads, among others.

The national president of the association stated that the current freight rate payable is not only inadequate but unsustainable for members continued operation, adding that transporters would find it difficult to operate under this condition.

Othman maintained that the current PMS scarcity in parts of the country is partly caused by lack of funds to run the trucks profitably, adding that many transporters have decided to park their trucks, while many more would park theirs in due course if something drastic about the increasing freight rate is not promptly addressed.

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