Nigerian Government Approves 50% Fare Reduction for Yuletide Travellers Amid Rising Transport Costs

As Nigerians embark on yuletide journeys to their hometowns and various destinations, a significant surge in transportation costs has left many travelers frustrated and financially strained.

THISDAY findings revealed that fares have increased substantially across major transportation companies in Lagos State compared to just a month ago.

Therefore, to lessen the cost burden on the citizens during the festive period, the federal government through the Minister of Transportation Sa’id Alkali, on Friday signed a memorandum of understanding (MoU) with the transport union to commence a 50 percent discount on road fares during the 2024 yuletide season.

The agreement followed directives by President Bola Ahmed Tinubu that passengers should board buses to their destination for only 50 percent of the fares.

The Permanent Secretary, Ministry of Transportation, Adeleye Adeoye, on behalf of the Minister, signed the MoU between the federal government and the leadership of the National Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN).

He also signed the agreement with the Association of Luxurious Bus of Nigeria (ALBON) and God is Good Motors (GIGM) as part of the government’s efforts to offer transportation palliatives from Abuja, Federal Capital Territory (FCT) and Lagos (Oshodi) to other parts of Nigeria.

He stated that people going for celebrations of Christmas and New Year respectively could have affordable transportation with the agreement.

“Before this, the federal government also provided free train rides for passengers during the festive season.”

Meanwhile, findings by THISDAY prior to the signing of the MoU, revealed that transport fares had increased substantially across major transportation companies in Lagos State compared to just a month ago.

According to THISDAY survey across major transportation companies operating from Lagos State, including, ABC Transport, God is Good (GIG), GUO, Chisco, Libra Motors, Ekesons, Faith Motors, and Greener Line, among others, fares from Lagos to other regions of the country, and outside Nigeria, had skyrocketed by at least 15 percent to 35 percent, compared to what they used to be a month ago.

Transportation to Ondo, Benin, Asaba and Onitsha which used to range between N28, 000 to N35, 000, a month ago, depending on the transportation company, now cost between N46, 500 to N60, 000.

Transportation to Port Harcourt, Yenegua, Uyo, Calabar, Enugu, Abakaliki and Aba, which used to range between N30,000 to N43,500, a month ago, depending on the transportation company, now cost between N51,700 to N68,300.

Transportation to Lokoja, Abuja, Katsina, Kano and Kaduna (Command Junction) which used to range between N32,000 to N55,000, a month ago, depending on the transportation company, now cost between N48,500 to N68,000.

Transportation to Minna, Zamfara, Jalingo, Sokoto, and Kebbi, which mostly doesn’t have a direct one-way transport route from Lagos, and used to range between N35, 000 to N47, 000, as of last month, now costs between N56, 500 to N73, 000.

However, Niger State Owned transportation Company NSTA, picks passengers up from the Oyingbo area of Lagos State to Minna at a government-subsidised rate of N13, 000.

Transportation to Ibadan or Abeokuta from regular parks around Lagos State which used to be between N4,800 and N5,500 depending on the location in Lagos, now costs between N5,500 and N7,500.

Transportation to Accra in Ghana, and Lome in Togo which used to range between N79, 000 and N120, 000 a month ago, now costs between N120, 000 and N230, 000.

Speaking with THISDAY, an Economist, Francis Durojaye, attributed the surge in prices of transportation to the high demand for transportation services during the holiday season, as well as the limited availability of vehicles and drivers.

According to him, “The surge in transportation prices during the yuletide season is a perennial issue in Nigeria, and this year is no exception. I’ll attribute it to the fundamental principle of supply and demand.

“During the yuletide season, there is a significant increase in the demand for transportation services as people travel to their hometowns and various destinations to celebrate the holidays. This increased demand, coupled with the limited supply of transportation services, results in higher prices.

“Another factor contributing to the surge in transportation prices is the lack of investment in Nigeria’s transportation infrastructure. The country’s roads, railways, and waterways are in various states of disrepair, making it difficult for transportation operators to provide efficient and affordable services.

“As a result, transportation operators are forced to increase their prices to compensate for the additional costs incurred in navigating the country’s poor transportation infrastructure.

“Also, if our waterways were working efficiently, and railways were better connected interstate, people would rarely use road transportation as the market shares for all the means of transportation would be evenly spread. This means that our roads will be decongested, and people can patronise a cheaper means of transportation to get to their destination, and not just road transportation enjoying monopoly.”

He added: “To mitigate this, the government needs to invest in Nigeria’s transportation infrastructure and implement policies that promote competition and efficiency in the transportation sector.

“Additionally, the government should establish price regulatory mechanisms to prevent transportation operators from charging exorbitant prices. By taking these measures, the government can help to reduce the financial burden on travellers during this yuletide season.”

Sunday Ehigiator and Kasim Sumaina

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