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Average Transport Fare Surges 98% After Fuel Subsidy Removal

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Transport Fare

By Adedapo Adesanya

* Cost of other alternatives transport soar in Review Month

** Ripples of fuel subsidy spur rise in food, rent, others

*** President Tinubu launches palliative measures to cushion effect

The average fare paid by commuters for bus journeys within the city per increased by 97.9 per cent from N649.59 in May 2023 to N1,285.41 in June 2023 as Nigerians grapple with a rise in prices after President Bola Tinubu announced the removal of fuel subsidy.

This was contained in the Transport Fare Watch June 2023 released by the National Bureau of Statistics (NBS) over the weekend, confirming the grim reality that the average commuting Nigerian faces on a daily basis.

In the report seen by Business Post, it was shown that on a year-on-year basis, the average cost of bus fare rose by 120.63 per cent from N582.61 in June 2022 to N1,285.41 in the review month.

In another category, the average fare paid by commuters for bus journey intercity rose by 42.1 per cent on a month-on-month basis to N5,686.49 in June 2023 from N4,002.16 in May 2023. On a year-on-year basis, the fare rose by 55.3 per cent from N3,662.87 in June 2022.

President Tinubu during his inauguration speech on May 29 announced that fuel subsidies, which gulped N4.3 trillion alone in 2022, were no more since the administration of Mr Muhammadu Buhari did not make provisions beyond June 2023 in the budget.

This caused an instant surge of over 40 per cent, creating a ripple effect in other basic needs like food, shelter, and other transportation alternatives over demand increase.

In air travel, the average fare paid by air passengers for specified routes’ single journeys increased by 4.9 per cent from N74,948.78 in May 2023 to N78,640.54 in June 2023. On a year-on-year basis, the fare rose by 40.2 per cent from N56,082.64 in June 2022.

The average transport fare paid on commercial motorcycle, otherwise known as Okada transportation was N618.52 in June 2023, 33.1 per cent higher than the rate recorded in May 2023 (N464.55). On a year-on-year basis, the fare rose by 48.3 per cent when compared with June 2022 (N416.97).

For water transport (waterway passenger transportation), the average fare paid in June 2023 increased to N1,366.22 from N1,045.15 in May 2023. On a year-on-year basis, it increased by 44.8 per cent from N943.26 in June 2022.

On state profile analysis, Bauchi state recorded the highest bus journey within the city (per drop constant route) in June 2023 with N1,700.00, followed by Jigawa with N1,570.00. On the other hand, Imo state recorded the least with N710.00, followed by Adamawa with N840.00.

For intercity bus travel (state route charged per person fare), the highest fare was recorded in Abuja with N8,500.00, followed by Anambra with N8,000.00. The least fare was recorded in Kwara with N3,400.00, followed by Zamfara with N3,700.00.

Similarly, Delta State recorded the highest air transport charges (for specified routes single journeys) with N87,000.00, followed by Kebbi with N83,500.00. Conversely, Abia recorded the least fare with N70,000.00, followed by Niger with N73,000.00.

Also, Lagos state had the highest motorcycle transport fare in June 2023 with N900.00, followed by Taraba with N850.00. The least fare was recorded in Edo with N250.00, followed by Bayelsa with N300.

In terms of water transport fare, the highest was in Rivers with N5,000.00, followed by Bayelsa with N4,500.00, while the least fare was recorded in Borno with N450.00, followed by Kebbi and Gombe with N500.00 each.

Analysis by zone showed that in June 2023, transport fares of bus journeys within the city recorded the highest in the South-South with N1,411.67, followed by the North-East with N1,318.33, while the South-East recorded the least with N1,162.00.

In terms of bus journey intercity, the South-East had the highest fare with N5,950.03, followed by the South-West with N5,916,67, while North-Central recorded the least with N5,398.57. The North-East recorded the highest fare of air transport in June 2023 with N80,650.00, followed by the South-South with N80,000.00, while the North-Central had the least with N76,357.14.

Also, commuters on a motorcycle (Okada) paid the highest fare in the North-East and South-West with N690.00 each, followed by the North-Central with N667.14, while the North-West recorded the least with N473.57. The South-South zone had the highest fare on water transport with N3,533.33, followed by the South-West with N1,275.00, while the North-East had the least with N783.33.

President Tinubu in a television broadcast on Monday, July 31, announced over $500 million financial package to assist households hurt by his economic reforms.

He defended his decision to scrap the fuel subsidy, saying it only benefited a few so-called elites, saying he was aware of the hardships that the decision caused citizens and promised his government was working to help.

The latest measures announced by the president include allocations for a review of the minimum wage, support for micro-, small- and medium-scale enterprises, and the purchase of 3,000 gas-powered buses to reduce the cost of transportation.

President Tinubu also ordered the immediate release of 200,000 metric tons of grains to households, in an effort to lower prices and 225,000 metric tons of fertilizers, seedlings and other inputs to farmers.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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inDrive Backs Smart Mobility Innovation With AOT Lagos 7.0 Sponsorship

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inDrive The Heart That Drives Us

By Modupe Gbadeyanka

The 2025 edition of the Art of Technology (AOT) Lagos is going to be bigger and better with the inclusion of inDrive as its official sponsor.

The AOT Lagos 7.0, themed Future Technologies and a Sustainable Lagos, is scheduled for Thursday, December 4, 2025, at the Landmark Centre, Lagos.

inDrive, a leading global ride-hailing platform operating in nine African countries, is partnering with the Lagos State government to bring together policymakers, innovators, tech founders, investors, and global industry leaders to shape the future of technology and digital transformation in Lagos.

Through this collaboration, inDrive aims to contribute to high-level conversations on driver empowerment, sustainable transport models, safety, and affordability, key challenges affecting millions of daily commuters and mobility service providers in the state.

According to the Country Representative of inDrive Nigeria, Mr Timothy Oladimeji, the sponsorship underscores the company’s deep commitment to advancing equitable mobility systems and supporting conversations that drive long-term impact across the transportation ecosystem.

He noted that inDrive sees AOT Lagos as a critical platform for addressing mobility challenges and accelerating innovation within the state.

During the event, inDrive will be participating in one of the key sessions, discussing the topic From fuel to future: the rise of e-mobility in Lagos.

Aside from this, inDrive will also be hosting a side workshop themed The Market Share Victory – How inDrive Became Nigeria’s Second-Largest Ride-Hailing Player.

“We are proud to sponsor AOT Lagos 7.0 because it aligns perfectly with our vision to democratise mobility and ensure fairness for both drivers and riders.

“As Lagos moves toward a smarter, more sustainable mobility future, inDrive is committed to supporting solutions that prioritise affordability, safety, driver empowerment, and technological readiness.

“Through this partnership, we hope to contribute meaningfully to shaping policies and ideas that will redefine how millions of people move across the state,” he said.

Now in its seventh edition, AOT Lagos has evolved into a premier platform for advancing smart-city innovation, showcasing emerging technologies, and influencing the policy frameworks that shape the digital economy in Africa’s largest city.

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FG to Open Section of Lagos-Calabar Coastal Highway December 12

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Lagos-Calabar Coastal Highway

By Adedapo Adesanya

The federal government is set to open Section 1 of the 700 km Lagos-Calabar Coastal Highway for public use from December 12 to 17, 2025.

The Minister of Works, Mr Dave Umahi, gave the assurance on Sunday in Lagos during a review of outstanding works on Section 1 of the highway project.

The section 1 is 47.47km long and has six lanes and two carriageways.

Mr Umahi said: “We also set aside April next year to have Section 1 and half of Section 2 fully completed and commissioned,” adding that the contractor handling the project, Hitech Construction Company Limited, had achieved more than 80 per cent of the reinforced concrete pavement.

“We are very grateful to God Almighty for his mercies, and to the President and to the contractor.

“If we are to pay for everything they have done, it will be very difficult to have this job done because there are places we didn’t envisage that we were going to be removing pits up to a depth of 20 metres.

“They had to do that because they are partners in progress for the development of the country.

“We have just about three kilometres to complete the entire sand filling from Ahmadu Bello Way to Eleko Junction, and we are excited at the work and the quality of what has been done,” the former Governor of Ebonyi State, said.

The new Controller of Works in Lagos, Mr Olufemi Dare, told the minister that a lot of settling was ongoing at Chainage 33 of the highway project, praising the contractor for high quality of work.

“Sir, it may interest you to know that the building standing is the palace of this community, and you saved this building, and they are extremely happy,” he said.

On his part, the Managing Director of Hitech Construction Company Limited, Mr Dany Abboud, said that the company would still backfill from Chainage 34 to Chainage 37.

“Dredging is ongoing, we are on track to deliver.

“We are monitoring the settlement in the swampy areas and the water body areas due to the change of alignment,” he said.

The highway, which commenced construction in March 2024, has generated a lot of controversy, with critics raising concern around cost and procurement structure.

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Nord Vehicle Owner Accuses Nigerian Bank of Economic Sabotage

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nord motion owner oluwatobi ajayi

By Modupe Gbadeyanka

A Nigerian lender has been accused of frustrating local business owners by not financing Made-in-Nigeria vehicles but promoting the purchase of foreign vehicles.

This allegation was made by the owner of a local vehicle assembly firm, Nord Motion, Mr Oluwatobi Ajayi, in a post on X, formerly known as Twitter.

He described this as an economic sabotage, stressing that this action does not encourage local investors.

“A business owner in the oil and gas sector approached us that he would like to buy two units of the @nordmotion Max pickup for his company. Apparently, he was impressed with the vehicle after some rides with his peers in the sector.

“To my shock, yesterday, my team told me that the bank, a bank operating in Nigeria told him that they do not finance Made-in-Nigeria vehicles, and they even suggested to our customer that he should go for foreign brands instead.

“The most provocative part of this is that all of the brands they suggested to him identified as Made-in-Nigeria brands in their filings with the Bureau of Public Procurement (BPP), which means they decide who they want to be whenever it suits them.

“This is yet another example of the needless sabotage and institutional bias against Nigerian manufacturers and assemblers that we experience in this sector.

“The President aims to grow us into a $1 trillion economy. Nigerians want to buy Made-in-Nigeria products, we are working very hard to produce world-class vehicles, but some banks, who should play the role of credit facilitators, are displaying open prejudice against locally made vehicles.

“What sort of economic sabotage is this?

“Many of us who continue to assemble and manufacture vehicles here do so not just for profit, but out of patriotism and belief in the long game. We see this as a marathon, not a sprint.

“We cannot continue using Nigerian resources to strengthen foreign factories while starving our own indigenous companies of opportunities.

“If we truly want this country to be better, then we must support goods and services made in Nigeria, especially those of us who have shown we can deliver world-class standards. The support has to be real, not just in words, but in policy, in finance, and in action.

“Every time we deny support for local production, we export jobs, skills, and economic growth that should belong here,” he narrated.

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