Passengers travelling by road to various cities in the country have been told to brace-up for a 40 per cent increase in fares with effect from September 19, 2016, THISDAY has reported.
The transporters under the aegis of Association of Private Transport Company Owners of Nigeria (APTCON) made the announcement in a notice to its members recently. The group said it was constrained to markup transport fares by 40 per cent because of the prevailing harsh operating business environment which has seen cost of operations rise by more than 80 per cent.
The association’s secretariat noted that it was compelled to implement the increase as the local economy was showing no signs of stability while international transactions were becoming increasingly difficult to close.
“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 stated.
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 Tax (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.
The group also noted that many of its members had expressed their inability to pay salaries much less run profitably, while some others have had to shut down operations completely.