The current economic downturn being witnessed
in Nigeria and the rising inflation figure is taking
another dimension in the road transport sector,as
players said their operations cost increased to a
record high of more than 80 per cent in recent
time.

The players, under the aegis of Association of
Private Transport Company Owners of Nigeria
(APTCON), said in Lagos yesterday that a 40 per
cent increase on road transport fare effective
Monday, September 19 is inevitable if the
sector must remain in operation.
According to the group, the prevailing harsh
operating business environment has pushed
compelled them to implement the increase as
the local economy was showing no signs of
stability while international transactions were
becoming increasingly difficult to close.

Convener of the association, Henrietta
Onwuegbuzie, had said though the road transport
sector remain one of the major alternatives to
movement of goods and people in the country, lack
of regulation crippled its contribution to national
development.
“As we are all aware, the global economy is
currently facing a downturn that has greatly
affected most countries in the world. As an
industry, we are not exempt from the crisis as in
recent months, our operating costs have risen
significantly”, the group said in a statement.
This is coming after the Association of
Luxurious Buses owners of Nigeria (LUBAN)
announced an increase in bus fares by 35 per
cent for all their routes.

APTCON lamented that the biggest challenges
facing its members were the price of fuelling,
cost of spare parts for vehicle maintenance,
unit cost of buses, diesel costs for powering
terminals, Value Added Taxes (VAT) as well as
increase in bank interest rates.
“These identified increments, to name but a
few, have taken a significant toll on the
revenue of private transport company owners
across Nigeria,” the statement noted.
In fact, many of its members have expressed
their inability to pay salaries, while some
others had to shut down operations
completely, the statement said.