TRUCK LOADING FEE: GOVERNMENT INTERVENTION AIMED AT PROTECTING BUSINESSES AND RESIDENTS — ALABI
The Ondo State Government has clarified that its intervention in the truck loading fee controversy was aimed at achieving a fair balance between the rising cost of doing business and the need to protect residents from excessive increases in the cost of construction materials.
The Commissioner for Energy and Mineral Resources, Engr. (Dr.) Johnson Jaiyeola Alabi, made the clarification in response to a statement by the African Democratic Congress (ADC) calling for a review of the recently agreed ₦220,000 truck loading fee involving quarry and tipper operators.
The Commissioner noted that the position of the ADC appeared to overlook the circumstances that necessitated the intervention of the State Government.
According to him, the quarry and tipper operators had initially proposed a truck loading fee of ₦250,000, before the State Government intervened and brought the relevant parties together for discussion, negotiation and consensus.
He said the eventual figure of ₦220,000 was therefore not imposed by the State Government, but was the outcome of engagement with the operators and relevant stakeholders.
“It is important to ask: Was the ADC not aware that the operators had proposed ₦250,000 before the government intervened?
“If the government had not intervened, would the proposed ₦250,000 have been more acceptable to the ADC?
“The government’s intervention was precisely to ensure that the matter was negotiated and that no party was subjected to an unreasonable position,” Alabi said.
The Commissioner also questioned the suggestion that government was insensitive to the rising cost of diesel and other operational expenses confronting quarry and haulage operators.
He explained that the government could not ignore the significant increase in the cost of diesel, maintenance, spare parts, vehicle operations and other inputs required to keep heavy-duty trucks and quarry operations running.
“Government must be responsible to both sides. We cannot pretend that the cost of operating these businesses has remained the same. At the same time, we cannot allow increased operational costs to translate into arbitrary charges that become unbearable for the people.
“That is why government intervened, to ensure a balance between the sustainability of businesses and the economic interests of the people,” he stated.
The Commissioner further clarified that the negotiated truck loading fee should not be confused with statutory haulage charges previously published by government.
He said the reference by the ADC to earlier government rates ranging from ₦500 to ₦4,000 per trip does not, in itself, establish that the ₦220,000 agreed truck loading fee is a replacement for those statutory charges.
He urged the public and political organisations to distinguish between government-imposed statutory charges and an industry-related loading fee negotiated among stakeholders.
Alabi stressed that the primary objective of the State Government was to create a healthy and sustainable business environment in which legitimate businesses could operate profitably while residents were protected from unnecessary economic hardship.
“Our responsibility is to create a business environment where investors and operators can survive and make reasonable returns, while ensuring that the people are not subjected to excessive economic pressure.
“Government is not against businesses making legitimate profits. Neither is government insensitive to the plight of ordinary citizens.
“What we are pursuing is a balance; a situation where businesses do not run at a loss and where the cost of doing business does not become an unbearable burden on the masses,” he said.
The Commissioner therefore welcomed constructive contributions from political parties, industry stakeholders and members of the public, noting that the government would continue to engage stakeholders in the interest of the State.
He assured residents that the Ondo State Government under the leadership of Governor Lucky Orimisan Aiyedatiwa would continue to pursue policies that promote investment, economic growth, job creation and a conducive business environment, while remaining responsive to the welfare and concerns of the people.
