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Mentioning that each of the over 20 million residents of the State generates a minimum of 0.65kg, averaging 13,000 metric tonnes, in all demanding no less than 650 heavy-duty trucks to evacuate them, he said the Agency has been straightened to the task to ensure “delivering excellent services to clear every thing on daily basis.”
According to him, poor attitude to waste management, recent rainfall, and particularly the recent cost of diesel has posed huge challenges to the cost of operation.
He mentioned that while the number of PSP trucks operating in the State has been upscaled under the present Governor Babajide Sanwo-Olu-led Administration from about 627 to over 1,100, higher than those of New York, about 150 of which are operated by LAWMA, he lamented that the rising cost of diesel from the 1st quarter of this year has posed huge challenges for operators.
“Of the key things we face as challenges for the PSP, the first of it is the rising cost of operation, the cost of overheads, majorly diesel, and spare parts for those trucks that PSP use,” he said.
He disclosed that in reality, a tariff review is under consideration, mentioning that the pricing review to commence 1st October this year with critical engagement with stakeholders, is projected for about a 50 per cent increase, which he said would, however, be variable subject to peculiar circumstances.
“Also, we are in the process of extensive and consultative pricing review for PSP services that will offer in households, knowing fully well that we are trying to recognise the economic trend in Nigeria, but we are trying to ensure that we are not introducing any change that will automatically disenfranchise people and cause the menace of Waste in our immediate society,” he said.
To meet up with changing demands such as the rising cost of diesel and the demands of clean energy, he disclosed the Agency has commenced processes of duel fuel systems for trucks, disclosing that two trucks had already been converted to dual fuel systems – 50 per cent diesel and 50 per cent gas for efficiency.
He, however, said to keep the operators afloat, the State Governor, Babajide Sanwo-Olu, has concluded to make fuel subsidy arrangements for the operators, which according to him, was to cushion the impacts of the high cost of diesel bitting hard on operators.
According to him, the fuel subsidy was in addition to subsidies offered to the PSP operators “in areas where we have challenges.”
“We are giving them additional subsidies to share among all operators that we feel the impact is bitting hard on so that they continue to deliver the level of service we expect them to deliver,” he said.
Also at the event, Chairman, of the Association of Waste Managers of Nigeria, David Oriyomi, assured Lagosians that with the support of the state government, efforts would be harmonised to address the prevailing challenges, particularly those relating to the exchange rate and rising diesel price which have informed the high cost of operation.