According to NARTO, it has made several attempts to negotiate fair and reasonable freight rates for its operations with the Major Energy Marketers Association of Nigeria (MEMAN) and other significant industry players, but it has not received any encouraging feedback.
The Nigerian Association of Road Transport Owners (NARTO), the country’s umbrella organization for petroleum truck owners, has insisted on discontinuing its services nationwide due to poor freight rates and high operating costs.
NARTO stated that it had made multiple attempts to negotiate appropriate and commensurate freight rates for its operations with the Major Energy Marketers Association of Nigeria (MEMAN) and other important industry stakeholders but had not received any positive responses. Over the weekend, Yusuf Lawal Othman, the national president of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), signed a letter to the organization.
With NARTO controlling more than 80% of Nigeria’s petroleum transportation, the notice of withdrawal of their services and activities signals grave consequences for the nation’s petroleum product supply and distribution.
With effect from Monday, February 19, 2024, NARTO claimed it was forced to notify NUPENG that its National Executive Council (NEC) had decided to order all of its members to refrain from using their petroleum trucks for activities related to loading petroleum products.
In order to ensure the sustained sustainability of the petroleum haulage industry and efficient service delivery, NARTO made an appeal to its employees, who are members of NUPENG, asking them to exhibit maximum collaboration, support, and understanding to its joint efforts by guaranteeing adequate and immediate compliance with the directive.
According to NARTO, given the current state of the nation’s economy, it was not feasible to continue in the industry.
The Department of State Services (DSS), the Executive Secretary of MEMAN, and the Nigeria Midstream and Downstream Petroleum Regulatory Agency (MMDPRA) were also copied on the notice of cessation of activities.
