Inter-state transporters unite, rue hike cost of automobiles …say luxury bus now costs N125M

All inter-state road passenger bus owners/operators in Nigeria have resolved to come together as one unifying body to develop strategies to tackle the challenges facing the sector.
They said the cost of vehicles used in their commercial operations have skyrocketed, requiring government’s intervention to save the sector from collapse.

Their resolution was contained in a communiqué issued at the end of the inaugural conference of ALBON & AMTO coalition on the Nigerian economy and road passenger transport, at the Lagos Airport Hotel, Ikeja, recently.

At the end of the conference, the forum resolved that the Association of Luxury Bus Owners of Nigeria (ALBON), the Association of Mass Transit Operators of Nigeria (AMTO), the Benin Transport Owners Association (BTOA) and other inter-state road passenger transporters nationwide, should be invited at the next meeting of ALBON & AMTO coalition with a view to fusing all the various inter-state passenger transporters/associations into one strong formidable association for all the inter-state bus owners/operators in Nigeria within the next sixty days.

They concurred that Inter-state Road Passenger Transporters nationwide have common challenges that require concerted efforts of all the inter-state bus owners/operators in Nigeria to resolve.

In the communique jointly signed by ALBON representative, Sir Dan Okemuo; AMTO representative, Chief Greg Inyaba and Benin Transport Owners Association (BTOA), representative, Engr. Isaac Uhunmwagho, it was also unanimously agreed that a Steering Committee, involving all the inter-state road passenger associations in the country should be set up immediately to commence the urgent work of fussing all the inter-state bus owners/operators together in Nigeria.

In addition, it was also resolved that the coalition, as well as, the proposed new association should retain the services of a suitable member of the Chartered Institute of Logistics of Nigeria (CILT), as their consultant.

Speaking at the conference at Airport Hotel in Lagos, Chairman of the Steering Committee of ALBON and AMTO, Sir Dan Okemuo said that the coalition is not restricted to ALBON and AMTO members alone, adding that membership of the coalition is open to all the bus owners, operators, associations or groups throughout the country.

According to Sir Okemuo, the sole aim is simply to bring together all bus owners nationwide into one united organization to tackle their common problems, emphasising that unless they come together to address their common problems, no one else will come to their rescue.

Okemuo, who listed their challenges to include: poor infrastructure, poor road networks, insecurity on the highways said, “The high interest and rise in foreign exchange rates have resulted in the high cost of imported buses, such that today’s landing cost of one luxury bus is about N125 million from N85 million and the cost of a Toyota mini-bus is now over N27 million as against the N14 million it was sold two years ago.”.
He regretted that, the bus owners’ response to the above challenges “have largely remained ineffectual principally because we are un-coordinated.”

In his keynote address, an expert from the Chartered Institute of Logistics and Transport (CILT), Mr Alban Igwe said that the Federal Government has a crucial role to play in the development and success of road transportation, adding that government should take ownership and make provisions for roads’ infrastructure, which are critical to their operations.

Listing transporters’ challenges, as lacking government’s support; lack of protection, bad road networks, multiple taxation, insecurity on the highway, high operational costs, fake motor parts, amongst others, Mr Igwe blamed the government for not showing enough interest in the plight of road transport operators.

Calling for a state of emergency in the road transport sector, the CILT boss advised that the auto sector has a lot of potentials to create jobs but has not been developed optimally. He therefore, pointed out that the reasons for auto policy was to develop the sector in the areas of employments, local manufacturing, conservation of forex, technical acquisition.

Igwe, who urged government to also extend the ease of doing businesses through Executive Order issued to other sectors, road transport sector, and challenged stakeholders to do more in developing the industry by themselves. “I challenge Sir Dan Okemuo and other stakeholders in this organization, to wake up and take bold steps so that the authorities can hear your voices. You are in the biting times; and this is the time to deliver,” Igwe said.

Emphasizing that Nigeria is not ready for vehicle manufacturing at this time, the transport and logistics expert urged the nation to lay more emphasis on proper road networks across the country.

He, however, recommended that the government should provide a clear roadmap for the sector, while infrastructure should be fixed. Others things he wanted the government to address are; long-term plans, capacity building, tax relief, fuel subsidy for operators, provision of data banks, enhanced passenger information and increased accessibility to buses, mandatory industry forum conferences and research and development.
He said thjat manufacturing of buses and coaches and protection of the industry in areas of capital flight and taxation, are also recommended to move the sector forward.

In his views, Managing Director of ABC Transport Plc, Mr. Frank Nneji, urged road transporters to come together, as they doing now, adding that the inaugural conference is a right step in the right direction.

Nneji, who said that the industry needs government’s intervention, added; “We should come together and that is the purpose of the gathering. Other associations get subsidies and grants, but we don’t get. There is need for intervention in the industry, but that can only be achieved, if the sector is able to convince the government about its needs.”
He added that, “I believe we can build buses locally and save ourselves cost. Why can’t we have a union that is very powerful in terms of the large people that we are employing? We should be looking at how we form a strong association. How can we make ourselves visible and make our problems known to the government?”