As NARTO worries over extortion along the Apapa port axis

By Olasunkanmi Akoni

The Lagos State Government, United Bank for Africa, UBA, in partnership with Nigerian Association of Road Transport Owners, NARTO, on Thursday, reviewed and finalized the N150 billion loan agreement for Compressed Natural Gas, CNG truck financing, and executed the Memorandum of Understanding, MOU, between the relevant parties.

The meeting brought together representatives from Lagos State Government, UBA, and NARTO executives to conclude discussions and formalize the agreement.

Speaking at the signing of the MoU at the NARTO Office, Apapa, the Special Assistant to the Governor on Transportation Logistics, Hassan Adekoya, added that the intervention will be implemented in phases, beginning with an initial N50 billion commitment as part of efforts to replace rickety trucks.

The Lagos State government, in partnership with NARTO, has initiated a N150 billion, 2,000 CNG truck replacement program to eliminate old, unsafe vehicles.

The project, supported by UBA, starts with an initial N50 billion phase to replace rickety trucks with new compressed natural gas (CNG), vehicles, aiming to enhance safety, reduce breakdowns, and cut transit times.

The key aspects of the Initiative are: Funding and Structure. The initiative is an asset-purchase scheme financed by UBA that allows operators to replace, not just repair, trucks.

Phase one: An initial N50 billion commitment is being deployed to begin the replacement process.

Infrastructure impact: The new trucks are intended to reduce container accidents and traffic congestion, aiming for 48-72 hour turnaround times for goods in transit.

The scheme, structured as an asset-purchase programme through UBA, will allow operators to acquire new trucks and repay under a structured plan.

According to Adekoya, “The State Government had intensified efforts to modernise freight movement in and out of the ports, and reduce accidents on major highways, by approving a N150 billion intervention geared towards the roll-out of 2,000 CNG trucks.

“The intervention is to be implemented in phases, beginning with an initial ₦50 billion commitment as part of efforts to replace aging trucks with cleaner, more reliable CNG-powered trucks.”

NARTO leaders at the ceremony expressed optimism that the programme would strengthen transport operations and contribute to Lagos’s vision of becoming a safer, more efficient logistics hub.

The National President of NARTO, Yusuf Othman, commended both the Lagos State Governor and the Federal Government for policies promoting cleaner energy and improved transport infrastructure.

He noted that there are ongoing training programmes for operators expected to handle the new CNG fleet.

“The initiative is a welcome development that would enhance safety in the haulage operations in the state.”

While applauding the Governor’s commitment to modernising the sector, Othman urged members to support the transition.

NARTO President, however, expressed concern over the continued extortion by state and non-state actors in port areas.

According to Othman, “By the time these trucks are in use, there will be improved turnaround and efficiency, loading and discharge of goods. Also, all the breakdowns on the road will be drastically reduced. As well as heavy traffic on the axis.

“We want to ensure that these state and non-state actors extorting money and making unnecessary collections on the road are eliminated. Now there will be new facilities, with vigorous efforts to ensure they work by clearing all bottlenecks.

“We want to collaborate with government officials to ensure this menace is cleared. It is a very serious extortion. We are losing a lot of money. And we cannot continue in this manner with new, expensive trucks coming in; the act of extortion will not be tolerated.

“At least they collect N20,000 per truck daily. And we operate at least 1,000 trucks per day. If you calculate how much has been extorted per day from our members. All this nuisance must stop immediately because it’s affecting innocent citizens.”

Meanwhile, representative of the UBA, Ernest Omoregie, commended the State government for the initiative.

According to him,“We just discussed the pending MoU for funding of brand new trucks initiated by the State government to see how we can quickly push the implementation of the MoU.

“The purpose of the meeting was for Lagos State to support transporters that want to buy brand new trucks through NARTO, so that members can take advantage of this and remove all those rickety vehicles from plying Lagos roads.

“UBA has also made provision to disburse over N50 billion in this regard to members who qualify and meet our terms. We are just trying to make sure we tidy up this and start disbursing the loans to qualified members.”