Waste managers name for brand new tariff construction in Nigeria to offset rising prices 

The Affiliation of Waste Managers of Nigeria (AWAMN) has urged the federal government to implement a cost-reflective tariff for waste administration companies, citing rising operational prices and a widening income hole.

This name was made by the affiliation’s President, Mr. Olugbenga Adebola, throughout an interview with the Information Company of Nigeria (NAN) on Tuesday in Lagos.

He described the present tariff regime as unsustainable, noting that whereas sectors like telecommunications and energy regulate costs for inflation and trade charges, waste administration continues to depend on outdated tariffs.

Adebola confused that with out a tariff construction that enables for correct value restoration, waste administration companies within the nation will face collapse.

“The Affiliation of Waste Managers of Nigeria (AWAMN) has referred to as on the federal government to implement value reflective tariff for enterprise sustainability. 

“Mr Olugbenga Adebola, President, AWAMN, disclosed this in an interview with the Information Company of Nigeria (NAN) on Tuesday in Lagos. 

“Adebola described value restoration as essential to the preservation of any enterprise.He mentioned efficient and environment friendly waste administration can’t be achieved with out value cost-reflective tariff. Adebola famous that any enterprise with out value reflective tariff would die a pure loss of life,” the NAN report learn partially.

Adebola highlighted the latest surge in diesel costs, a key value for waste assortment. Whereas the final tariff adjustment in low-income areas was in 2022 when diesel value N600 per litre, costs have since soared to N1,700 earlier than dropping to N1,300 following intervention from Dangote Refinery. Regardless of these fluctuations, waste service tariffs haven’t been adjusted.

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Adebola additional defined that waste administration operations are dollarized, with truck prices calculated primarily based on the prevailing trade fee.

• He revealed that AWAMN has secured a €50 million Memorandum of Understanding (MoU) for infrastructure upgrades, together with truck acquisitions and recycling methods. Nevertheless, he cautioned that such investments can’t be sustained with out a correct cost-recovery mechanism.
• He additionally criticized the present subsidies, noting that operators obtain as little as N200,000 to N500,000, whereas the price of a single truck tyre can attain N400,000. A 2023 value evaluation confirmed that working a waste truck in Lagos for one journey prices between N167,000 and N180,000, however operators typically earn lower than N70,000 per journey, making a extreme monetary imbalance.

Adebola confused that these points should be urgently addressed for the sector to thrive, advocating for a tariff system that precisely displays the financial realities of Nigeria.