Business

Inflation Pushing Truckers Out Of Business, Group Laments

Published

3 years ago

September 1, 2022

As the inflation rate bites harder, truckers have said that about half of their members are leaving the job for other businesses.

In an exclusive chat with The PUNCH in Lagos on Wednesday, former Dry Cargo Chairman of the Nigerian Association of Road Transport Owners, Abdullahi Inuwa, said that the sector was riddled with a lot of challenges.

Inuwa fingered drop in cargoes, high cost of truck maintenance and diesel as reasons for the dwindling fortunes of the sector.

“From my own side, the work is not friendly because of drop in activities. This is coupled with the high cost of maintaining trucks, diesel and other activities. Some people who have, for instance, 10 trucks may be managing to maintain five now to have money for other businesses. I have to park 0my trucks for now. I am currently not doing port operations now. So, about 50 per cent truckers have parked their trucks pending when things will improve. Some are looking for other ways of survival. I started seeing this development in November 2021. You are aware that earlier this year, there was scarcity of empty containers in Europe, coupled with lack of access to forex.”

He also accused the Federal Government of focusing more on generating revenue than encouraging trade.

“Our government’s approach to tariffs, especially the Customs, is not encouraging. They don’t think of encouraging the industry because they are always increasing tariffs and targeting gaining more revenue.”

Inuwa said that the situation is worse for truckers who were not resident in Lagos because they had to pay for parking for the number of days they would stay, with little or no cargo to go back with.

Corroborating Inuwa’s submission, the Head of Operation, NARTO, Mr Stephen Okafor, said that truckers were not breaking even, noting that other sectors had increased their rates except the trucking sector.

According to him, “I know a whole lot of people have actually left the business. People are actually going out of business and if it continues like that, a whole lot of people will still leave.”

Also speaking, the President of the Council of Maritime Truck Unions and Associations, Mr Adeyinka Arowoyewun, said, “The level of importation has drastically reduced due to so many factors which have to do with the exchange rate, war in Ukraine and Russia, and the policies of government vis a vis increase in tariff. I agree that importation has reduced and a lot of truckers have actually abandoned that business.”

Business

Naira Depreciates Against Dollar

Published

9 hours ago

July 4, 2025

Editor

The Naira experienced a slight depreciation on Friday at the official market, trading at N1,528.56 to the dollar.

Data obtained from the website of the Central Bank of Nigeria (CBN) showed that the Naira lost N2.73.

This represents a 0.17 percent loss compared to the N1,525.82 recorded on Thursday.

The Naira, which opened the week on Monday with a gain of N9.52 against the dollar, held steady gains until Thursday.

On Wednesday, the local currency gained N3.42 against the dollar and received commendation from the International Monetary Fund (IMF).

The IMF, in its 2025 Article IV Consultation report on Nigeria, commended the CBN for its reforms to the foreign exchange market, which supported price discovery and liquidity.

Business

JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

Published

2 weeks ago

June 20, 2025

Editor

Nigerians may soon pay more for petrol as the Dangote Petroleum Refinery on Friday increased its ex-depot price for Premium Motor Spirit to N880 per litre, raising fresh concerns over fuel affordability and price volatility in the downstream sector.

Checks on petroleumprice.ng, a platform tracking daily product prices, and a Pro Forma Invoice seen by The PUNCH confirmed the hike, representing a N55 increase from the previous rate of N825 per litre.

The increment would ripple across the entire fuel distribution chain, likely pushing pump prices above N900/litre in some parts of the country, especially in areas far from the distribution hubs.

The hike comes despite global crude prices falling. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. The decline in benchmarks offers little relief due to persistent fears of sudden supply disruptions.

The refinery has increased its reliance on imported U.S. crude and operational costs amid exchange rate instability, which adds to its pricing pressure.

On Thursday, the President of the Dangote Group, Aliko Dangote, said his 650,000-barrel capacity refinery is “increasingly” relying on the United States for crude oil.

This came as findings showed that the Dangote Petroleum Refinery is projected to import a total of 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered in the past two months, amid ongoing allocations under the Federal Government’s naira-for-crude policy.

Dangote informed the Technical Committee of the One-Stop Shop for the sale of crude and refined products in naira initiative that the refinery was still battling crude shortages, which had led it to resort to imports from the United States.

On Monday, the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, accused oil marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of PMS should range between N700 and N750 per litre.

He criticised the disparity between falling global crude oil prices and the stagnant retail price of petrol in Nigeria.

“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre.”

He asserted that if Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing.

His forecast of increased costs now appears spot on, considering the latest developments.

Marketers are already adjusting. Depot owners and fuel distributors in Lagos and other cities anticipate a domino effect, with new price bands expected to follow Dangote’s lead.

Many had held back pricing decisions since Tuesday, when the refinery halted sales and withheld fresh PFIs. The delay fueled speculation, allowing opportunistic price hikes across various depots.

Business

Naira Appreciates At Official Market

Published

1 month ago

May 24, 2025

Editor

The Naira, which has seen steady appreciation against the Dollar all week, closed stronger on Friday, trading at ₦1,580.44 in the official forex market.

Data from the Central Bank of Nigeria’s website show the Naira gained ₦4.51k against the Dollar on Friday alone.

This marks a 0.28 per cent appreciation from Thursday’s closing rate of ₦1,584.95 in the official foreign exchange window.

The local currency maintained consistent strength throughout the week, recording gains daily.

On Monday, May 19, it traded at ₦1,598.68; on Tuesday, at ₦1,590.45; and on Wednesday, at ₦1,584.49.

These gains suggest increased investor confidence and improved forex supply, contributing to the naira’s performance.

Meanwhile, the CBN, at its 300th Monetary Policy Committee meeting held Monday and Tuesday, retained the Monetary Policy Rate at 27.5 per cent.