Lokoja Flood Paralyses Business For Transport, Logistics Companies

The fragile investments environment in the transportation and logistics sector of the Nigerian economy could be worsen by the Lokoja floods.

Investments are now at risk as big transport companies are decrying huge revenue losses due to the flood that had blocked the Lokoja-Abuja expressway linking Southern Nigeria to the Federal Capital Territory.

The flood began late September with over 200 communities submerged and extended to the Lokoja axis.

Lokoja sits at the confluence of the Niger and Benue rivers and is the capital of Kogi State.

The state governor, Yahaya Bello, has described the disaster as a “serious humanitarian tragedy.”

Nigeria’s transport sector has only grown by 51.6 per cent in the second quarter of 2022, dropping by 25.15 per cent compared to the same quarter of last year.

Transport and logistics are among the factors fueling inflation which has grown to 20.52 and experts believe it may grow worse if the flood persists.

Logistics companies and e-commerce businesses are also trapped as the companies are already losing millions on a daily basis.

Big transport companies like God Is Good Motors (GIG), GUO, ABC Transport PLC and Chisco are seeing their revenue dwindle as passengers’ traffic has dropped by half.

Luxury buses used by the likes of Chisco have either been abandoned at the scene of the flood or packed in their various parks in Abuja, Lagos and the South East.

“A trailer just arrived, but it has slept on the road since Sunday, and there are some buses that have been on the road since Sunday, they are still there. So, there is a huge suffering there. Drivers spend at least five days before landing here.

“You can see that our park is empty. We are still loading but we are no longer using the regular road, but Jebba. Some of the passengers had to cross with a boat, to the other side to enter small cars to journey to Abuja,” a Chisco driver, Mike, who takes the route from Utako Park, told THE WHISTLER.

Mike said they had reviewed their transport fare N14,000 to N15,000 due to the flooding.

Mike also revealed that the management of Chisco has approved additional 50 litters of fuel to the normal amount.

ABC Transport that has over 14 busses travelling to seven destinations including Lagos, Port Harcourt and Aba is struggling to do seven trips due to drastic drop in patronage.

A staff of ABC Transport who is familiar with the matter told THE WHISTLER that the flood “is really affecting the revenue of the company.”

The company is now charging N20,000 to Lagos, up from N14,500 previously charged, while passengers heading to Port Harcourt will pay N15,400, formerly N13,400.

He narrated, “Actually, the flooding at Lokoja is affecting our business. There is no easy route as it stands. Drivers are finding it difficult to take the route. Now we have resorted to taking Nasarawa which passengers are skeptical of using due to security.

“In fact, we have reviewed our prices upwards and it is difficult for customers. For instance, the price to Lagos is now N20,000, before it was N14,500. From Abuja to Aba used to be N10,500, but as we speak it is now N12,500. From here to Port Harcourt used to be N13,400, but it has risen to N15,400.”

According to him, the worse passenger drop recorded is the Lagos, Ibadan routes, while passengers heading to the East are lamenting due to the price of the fares and the stress of passing through the longer Nasarawa route.

He explained, “We have even cancelled our night trips since Monday. We used to run 7 trips daily and the busses fully loaded. Each day, we used to have two busses for the seven destinations- Lagos, Aba, Port Harcourt, Calabar and others. But with this flood, we hardly get a full bus, because the passengers are scared of travelling especially through the Nasarawa route due to insecurity.

“This is dragging the revenue of ABC down. Today being Saturday, we know how many passengers we do take to Lagos with the sprinter plus buses that carry 52 passengers. Since last week, we have not had even one of the busses on the road.”

Okoro said using the old price of N15,000, the company makes N78,000 from a single 52-seater bus if fully loaded.

He added that, “The most pressing challenge for ABC is the revenue which has really dropped. We are struggling with the trips. There are lots of waybills that should have been moved to Lagos and other parts of the country, but they are being delayed due to the flood.

“Their owners have been calling. Some of the waybills have stayed here for four days. Drivers are also struggling with sourcing for fuel. The company now spends more on fuel. Before now, drivers were given N190 per litre, but since the incident, we are giving them N220 per litre.”

At God Is Good Motors in Utako, a senior staff familiar with the company’s operations told THE WHISTLER that the” current situation has eaten deep into the business of GIG because there are no passengers.”

He said passengers’ traffic has dropped because the roads are bad and customers do not want to take the risk of spending longer time on the road.

He added, “It is definitely weighing hard on our revenue. But people are still travelling. We have alternative routes like for those going to Lagos, they have to take Jebba- Mokwa to Ibadan or they follow Keffi and cut out Lokoja to Okene.

“The problem is that longer time is spent on the way and it is costing the company more. We have reviewed our prices to suit current condition. It is a wise decision for us to review our price. The passengers are not finding it funny, but there is no body to blame. It is a natural disaster that led to it.”

At GUO in Utako, drivers are already getting discouraged as the risk and stress of the journey is biting hard.

For instance, a driver said he spends longer time on the road and it is costing both him and the company more.

GUO have slightly reviewed their transport fare to reflect current reality. For instance, Abuja to Lagos cost N18,000 before the flood, but they currently charge N25,000.

He noted, “We are taking a longer route and normally from Lagos to Abuja, I used to get here 4pm, now, if I follow the longer route, I will get to Lagos between 11pm and 1 am.”

Popular buy now, pay later e-commerce business based in Lagos, CDCare, wrote its customers that it had suspended delivery to Abuja due to the flood.

“There may be a delayed delivery of items shipped to the North due to flood situation in Lokoja,” the company wrote in a letter to a customer seen by THE WHISTLER.