Rising Energy, Spare Parts Cost Threaten Haulage Business In Nigeria



LAGOS MARCH 11TH (NEWSRANGERS)-Nigeria’s rising energy cost and prices of spare parts are threatening haulage business, with operators incurring more losses and struggling to break even.

The removal of petrol subsidies and naira devaluation have caused a further surge in prices of vehicle spare parts and diesel, thereby worsening truckers’ woes.

BusinessDay findings show that a year ago, diesel was sold at between N800 and N850 per litre, but it now goes for between N1,600 and N1,700, depending on the marketer and the state.

This represents a 100 percent increase in the price of diesel on a year-on-year basis.

According to the National Bureau of Statistics (NBS), the average retail price of Automotive Gas Oil, also known as diesel, paid by consumers increased by 39.11 percent on a year-on-year basis from N828.82 per litre in January 2023 to N1,153.01 per litre in January 2024.

On a month-on-month basis, the price increased by 2.34 percent from N1,126.69 in December 2023 to an average of N1,153.01 in January 2024.

Bala Mohammed, a haulage operator, told BusinessDay that the present economic headwinds are negatively impacting haulage operations amid dwindling imports and declined revenue arising from job scarcity at ports.

According to him, with diesel presently selling for between N1,600 and N1,700/litre, haulage operators can hardly make a profit.

“Truckers can hardly make any significant profit after paying for costly diesel,” he said.

Kazeem Olatunji, another trucker, said most truckers who are doing business in Lagos Ports are struggling to survive because the bulk of money charged for haulage is used to fuel trucks.

“We are calling on the government to proffer a solution to the rising cost of energy for the progress and survival of the trucking business and also review import tariff on truck parts to cushion the effects of the rising cost of truck parts and enable truckers to meet up with the minimum safety standard.”


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