Nigeria’s National Association of Road Transport Owners (NARTO) controls over 80% of petroleum transportation in the country. Amid the current economic downturn in Nigeria, NARTO has taken a significant decision to withdraw its services nationwide.
Efforts to negotiate with the Major Energy Marketers Association of Nigeria (MEMAN) and other industry stakeholders for appropriate freight rates have been unsuccessful. In a letter addressed to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), signed by its national president, Yusuf Lawal, NARTO expressed its frustration at the lack of positive responses and the high cost of operations.
Due to the challenging economic conditions, NARTO stated that continuing operations is no longer feasible. The association has urged its employees, who are members of NUPENG, to cooperate and support its efforts for the sustainability of the petroleum haulage business. Immediate compliance with the directive is requested to ensure effective service delivery.
As a result of its National Executive Council (NEC) resolution, NARTO has instructed all its members to withhold their petroleum trucks from loading activities starting from Monday, February 19, 2024.
Notifications regarding the suspension of operations have been dispatched to the Nigeria Midstream and Downstream Petroleum Regulatory Agency (MMDPRA), the Department of State Services (DSS), and the executive secretary of MEMAN.
The decision by NARTO to suspend petroleum transportation services underscores the severity of the economic challenges facing Nigeria and raises concerns about the potential impact on the petroleum supply chain and related industries.
