Examining NARTO’s Role in Nigeria’s Economy

Registered in 1988, the Nigerian Association of Road Transport Owners (NARTO), is an amalgam of three hitherto region-based transport associations, whose business is to fight for a conducive environment for its members’ operations to thrive. Emmanuel Addeh writes that at its Annual General Meeting which held last week, the body, an umbrella of all commercial vehicles owners in Nigeria, renewed its vow to continue serving the country through its services, especially the haulage of petroleum products around Nigeria

Formed from the Northern Association of Licenced Buying Agents and Transporters (NALBAT), the Nigerian Transport Owners Association (NTOA) and Eastern Road Haulage Association (ERHA) for the north, west and eastern regions, respectively, NARTO, has recently gained prominence, following the important role it plays in getting fuel and other commodities to Nigerians.

NARTO is the umbrella organisation of all commercial vehicles owners in Nigeria engaged in the haulage of petroleum products, general cargoes, and movement of passengers, within the country and the entire West-Africa sub-region.

It is an association of all investors in the road transport business in Nigeria whose membership cuts across race, religion, ethnicity and geographical differences.

One of its objectives, the organisation says, is the protection, promotion, defence, articulation and representation of the views of all transporters and transport operators sub-sector of the Nigerian economy.

Now led by Alhaji Yusuf Othman, the body boasts of making significant contributions to the national economy as even a little sneeze by the organisation could effectively ground the country.
Aside accounting for a large percentage of revenue to government through taxes, rates and levies, NARTO, according to its members, remains the biggest employer of labour next to the federal government.

The body notes that for every sided truck, for example, about twenty people derive their livelihoods excluding their dependants i.e. from origin to destination.

Being the mouthpiece for the projection and articulation of transporters’ problems, the organisation has several times, set up machinery for the periodic review of freight rates with the federal government for the interest of all transporters in Nigeria.

As part of its achievements, NARTO maintains that it has successfully reacted against obnoxious policies in the past such as failed attempt by government to introduce obnoxious policies inimical to the operations of its members.

At a point, it posits that an attempt by the military junta of General Sanni Abacha to impose tools on the use of bridges in Lagos State was successfully resisted by the association.
“It has fought against multiple taxes, rates levies and extortion by local government in the country which led to the promulgation of decree No.21 of 1998 now Act,” NARTO notes on its website.

Taking this to a whole new level, in conjunction with NUPENG, NARTO has instituted a joint welfare insurance scheme for its tanker drivers so as to take care of drivers and their dependants in the event of accident during services and post services periods.

As a government partner, the body adds that it provides statistics to government, its agencies and parastatals on vehicle cost, operations and data and numbers of vehicles in circulation in the country from time to time.
At the organisation’s Annual General Meeting (AGM), the highest decision making body of the association whose resolve is final on all issues, held at the Zuma resort in Niger State, NARTO, again recounted some of its achievements in the previous years and how its challenges can be sorted out by the government.

Aside the AGM, the structure of the organisation also includes the National Executive Council (NEC), the policy formulation and action implementation level, which meets quarterly and reach consensus by means of ordinary resolutions.

At the lower level, NARTO has organised its members at the oil installation, depots and refineries, industrial complexes, ports and other loading points into unit officials which serve as the last tier of administration of the association, directly under the state branches.

At the well-attended event in Niger, following the request of NARTO, the federal government indicated that it was considering an increase in petrol freight, that is, the rate of transporting commodities, goods and cargo by land, sea or air, from N71.51 per litre of the product.

It noted that talks were already ongoing with representatives of organised labour to hike the rate to N9.11 for a litre, accounting for roughly 21 per cent increase in order to enhance the revenues of transport owners in the country.

In an address at the event, the 21st in the series, Othman, urged the government to implement the new N9.11 freight rate to enable the transport owners improve their services and increase the wages of their staff including the truck drivers.

He assured that NARTO would continue to work to improve the safety of their trucks and drivers.

“With the promise of the increase in freight rate, there will be more income that will allow more investments in the facilities and at the same time, our drivers will be happy because there is clamour from them to increase their package and allowances from now to next month.

“I believe if that freight cost is reviewed, we are going to assent to their clamour and things will be fine by the grace of God,” he stated.

He noted that the association had made significant contributions to the national economy, stressing that apart from accounting for a large percentage of revenue to government through taxes, NARTO remains the biggest employer of labour, apart from government.

In his response, the Executive Secretary of the Petroleum Equalisation (Management) Board (PEF), Mr. Ahmed Bobboi, noted that what was delaying the implementation was the federal government’s approval as well as the expected reversion of labour on the issue.

The plan if implemented, will amount to 21.30 per cent hike in freight, that is, the Petroleum Products Pricing Regulatory Agency (PPPRA) component of the total cost of petrol.

Bobboi also revealed that the federal government was expecting the labour unions to revert to it on the agreement it reached with the joint committee set up to negotiate the hikes in petrol and electricity prices.

“Two days ago, labour requested for three weeks, for them to go and study the technical report, so that when they agree with the technical report , they will come back and then get approval. So, we pray that labour will do what’s needful,” he stated.

Also, the Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Mallam Mele Kyari said upon the conclusion of the deliberations with labour, the government would announce the effective implementation date in line with the pricing template.

Kyari was represented by the Chief Financial Officer, NNPC, Mr Umar Ajiya, at the event which was attended by major stakeholders in the petroleum sector.

Kyari added: “The Executive Secretary of PEF made a statement that there is ongoing engagement between the federal government and the labour, and at the end of that process government will make adequate pronouncement as to the effective date of that figure as contained in the pricing template”.

The GMD also lauded NARTO for continuing to work despite the daunting challenges in the country.

“We are not unaware of the conditions of our roads, the insecurity, the highways, and also a number extortions do take place along these highways,” he told the union.

The NNPC boss urged the association to ensure that its trucks and drivers comply with safety standards always, for hitch-free operations at the depot and on the highway.

He promised that the NNPC will continue to cooperate with the association to resolve all the challenges impacting in the distribution of products in the country.

“We will continue to make payment to PEF for deductions of dues due to you so that PEF will continue to pay your members as at when due,” he assured.

On the occasion, there was also a flurry of goodwill messages, all of them eulogising the giant strides made by the body in the last couple of years.

Former General Secretary of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Deputy President of Nigeria Labour Congress (NLC) as well as two-term Federal House of Representatives member, Joseph Akinlaja, highlighted the role played by NARTO in the country.

“They supplied fuel throughout the Covid-19 period. It would have been difficult to move without them because if they had shut down fuel, even the medical officials won’t be able to move from place to place.

“That underscores their importance and I pray NARTO’s relationship with NUPENG and PTD will not sour. Today, everybody is here and praising you,” he stated.

In his comments, Chairman Logistics Committee of Major Oil Marketers Association of Nigeria (MOMAN), Olusegun Ogunaike, expressed delight that despite all the challenges, NARTO had continued to ensure unity within its ranks and among its partners’.

“We are happy to be part of this. There can’t be us without you, so we are happy with the cordial relationship that we have with NARTO. We hope for a better future,” he noted.

Also speaking, Manager, Reconciliation and Collections, Petroleum Equalisation Fund (PEF), Theresa George-Obe, explained that NARTO had been a reliable partner to the fund.

“I use this opportunity to congratulate NARTO. This is a laudable one, especially in this season with the current reality that we are living in. NARTO has been a strong stakeholder and they have a strong relationship with us. It is our hope that this relationship will get better because we are all in the same business of oil and gas” she said.

A representative of the Central Bank of Nigeria (CBN), Yusuf Yila, who further spoke on the role of NARTO in moving the economy, urged the body to continue to serve the country through its services.

“Our relationship is quite a fruitful one. NARTO came at a time we were having some difficulties. We needed to move some fertilizer across the country and NARTO came in and delivered. Dangote refinery is coming on stream, they are going to be using NARTO. NARTO is also helping with movement of agricultural commodities into the various silos,” he stressed.