Economy: Expect 70 percent hike, we must survive – Inter-state transporters tell Nigerians | Nigeria Newspaper- Nigeria News| Naija News

19.8.16

Economy: Expect 70 percent hike, we must survive – Inter-state transporters tell Nigerians

By
Female-Driver
Weighed down by economic challenges and poor infrastructure, private transport companies in the country say they may have no choice but to increase fares by as much as 70 percent to stay in business. The transporters stated this at a stakeholders’ meeting in Lagosn put together by the Association of Private Transport Companies of Nigeria (APTCON) on Thursday.

DAILY POST notes that with the planned increment, a trip from Lagos to far Southern and Northern states, which currently costs at least 5,000 per trip will jerk up to 8,000 minimum.
Lamenting the high cost of maintaining their fleet, the transporters agreed that “as a means of survival, we will increase transport fares by 70%, beginning end of third quarter 2016, if no immediate help or support comes from government and its agencies”.
A communiqué released at the end of the APTCON stakeholders’ meeting noted the following: “That road transportation remains the most visible and effective means of moving people and goods within the Nigerian economy.
“That the road transport sector has, over the years, suffered severe neglect with poor attention paid by successive governments to development of appropriate infrastructure;
“That being in the throes of economic recession, road transport operators have seen their little margins completely wiped away by inflation, rising cost of funds, double taxation, unstable value of the Naira as well as unnecessary harassments and extortion by security operatives;
“That the prostrate state of the automotive industry has made importation of passenger buses not only prohibitive but unsustainable;
“That in the face of poor Return-on-Investment (ROI), the road transport business is in danger of imminent collapse with attendant job losses and damaging impact on the economy.”
The group, therefore, resolved as follows: “To alert government and its agencies on the continued relevance and strategic importance of the road transport sector to the overall well-being of the Nigerian economy.m
“To fully mobilize its members to press for urgent rehabilitation of dilapidated infrastructure hindering efficient delivery of service and value to the Nigerian public.
“To seek Federal Government’s immediate intervention by way of a bailout to cushion the harsh business climate and seek import reliefs, where necessary, as a short-term measure for fleet replenishment.
“As a means of survival, to increase transport fares by 70%, beginning end of third quarter 2016, if no immediate help or support comes from government and its agencies.
“To set up a committee for the harmonization of membership and to rally all operators for the execution of all defined tasks as may be resolved.”
Stakeholders at the meeting included the FRSC, LASTMA, NARTO, God Is Good Motors (GIGM), Chisco Transport, Libra Motors, Cross Country, Eagle Transport, GUO Transport, Ekeson EFEX Executive, First Tarzan Motors and Ecobus.
Others were Jetvan Automobiles, Toyota Nigeria ltd, Goddy Edosa Motors, Fairplus International, Greener Line, Harmony Transport, TRACAS, Okeyson Motors and Ohomba Line, as well as Access and Wema Banks, among others.

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