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Average Transport Fare Surges 98% After Fuel Subsidy Removal
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.
By Adedapo Adesanya
Mobility fintech, Moove, has raised $250 million in a Series C round, valuing the company at $2.1 billion, finally attaining a long-pursued unicorn status.
The round was led by Mubadala Investment Company and co-led by Woven Capital, Toyota’s growth fund, and Ion Pacific. New backers BlueCrest Capital Management, Sona Asset Management and The Raptor Group also joined, alongside existing investors BlackRock, MUFG, Franklin Templeton, Uber and others.
The funding will help Moove expand its autonomous vehicle business by investing in fleet ownership and its robotics-powered depots, known as “Nests,” where autonomous vehicles are charged, maintained, serviced and managed for continuous operation.
Through its partnership with Waymo, Moove is already a leading third-party autonomous fleet operator, with operations live in Phoenix and Miami, and future operations in London.
The capital will also support the company’s expansion into new global markets. As part of the growth plan, Moove expects to increase its autonomous vehicle workforce by more than 220 per cent by the end of the year, growing from about 150 employees to around 500.
Moove said scaling autonomous mobility requires more than just self-driving vehicles. It also needs investment in fleets, charging infrastructure, maintenance facilities and operational systems. The company is building this supporting infrastructure to make autonomous transport reliable and scalable across cities.
Moove started in Africa in 2020 by financing cars for drivers working on ride-hailing platforms. It later entered the UAE, India, the US and the UK. The company also works with Uber, which joined a $100 million funding round in 2024 that valued Moove at $750 million. The new valuation is 2.8 times that level.
Speaking on the deal, the co-chief executive and Advisory Board Chairman of Moove, Mr Ladi Delano, said, “Every major technology revolution becomes an infrastructure race. The internet required data centres. AI required compute. Autonomy requires fleets, charging, maintenance, data systems and 24/7 operations in every city – and that is what Moove is building. In our view, as autonomy scales, infrastructure ownership and operations will define the category leaders. We are building to be one of them.”
On his part, Mr Ali Eid AlMheiri, Executive Director of Diversified Assets, UAE Investments Platform at Mubadala, said: “As autonomous mobility moves from innovation to scaled deployment, the infrastructure supporting it becomes increasingly important. Moove is building an integrated operating platform that combines fleet ownership, operational capability, and technology to support the next phase of growth in autonomous mobility. This is particularly important for the UAE.”
Adding her input, Ms Betty Lee, Principal at Woven Capital (Toyota’s Growth Fund), said, “Moove has demonstrated an exceptional ability to execute across markets, building a global platform across traditional and autonomous vehicle fleets. The next wave of mobility is an infrastructure problem as much as a software one, and Moove is building the foundational layer to solve it.”
For Mr Michael Joseph, co-CEO & Co-Founder of Ion Pacific Limited, said: “We’ve partnered with the Moove team for more than five years, and their execution has consistently impressed us. As autonomous mobility moves from possibility to reality, Moove is building a critical infrastructure layer for the sector – one that is complex, adaptive and essential to scaling AVs. We’re excited to be part of that journey.”
By Aduragbemi Omiyale
The corporate mobility solution from Bolt, Bolt Business, has expressed its desire to strengthen relationships with existing customers in Nigeria by introducing solutions tailored to industries with frequent employee mobility needs, including healthcare, financial services, legal services and logistics.
This is as the organisation, over the past 12 months, delivered double-digit growth in the country, driven by expanding adoption across multiple industries, growing demand from small and medium-sized enterprises (SMEs), and an increasing number of firms seeking cost-efficient alternatives to managing in-house transport fleets.
The Country Manager for Bolt for Business Nigeria, Mr Isaac Iroko, disclosed that the smarter mobility solutions being planned will improve visibility, simplify expense management and support business growth.
“Our focus remains on building products that create value for organisations of every size while delivering a seamless experience for their employees,” he stated.
Bolt Business has continued to experience an increasing demand from businesses seeking smarter, more efficient ways to manage employee transportation and business travel.
It serves organisations across a broad range of industries, including financial services, technology, healthcare, professional services, manufacturing, logistics, media, real estate and fast-growing consumer businesses.
The growth reflects a broader shift in how Nigerian businesses approach corporate mobility. Rather than maintaining expensive vehicle fleets or relying on fragmented transport arrangements, more organisations are adopting digital mobility platforms that offer greater transparency, control and operational efficiency.
“Businesses today are looking beyond transportation; they’re looking for smarter ways to optimise operations and manage costs.
“We’ve seen organisations across different sectors embrace Bolt Business because it gives them a simple, reliable and transparent way to manage employee travel, whether it’s daily commutes, client meetings or business trips.
“This growth demonstrates that corporate mobility is becoming an increasingly important part of business efficiency in Nigeria,” Mr Iroko stated.
Unlike traditional fleet management, Bolt Business enables companies to centralise transportation through a single platform, providing features such as centralised billing, trip reporting, spending controls and real-time visibility into employee travel. These capabilities help businesses improve oversight while reducing the administrative burden associated with corporate transportation.
By Modupe Gbadeyanka
To boost economic activities in Lagos Island and support residents, the chief executive of the Lagos State Lotteries and Gaming Authority, Mr Bashir Are, sponsored the training of eight persons at the LagRide Drivers Academy through the LagRide Partner Programme.
Mr Are funded both the academy training and the vehicle costs, removing the two barriers that most frequently prevent qualified drivers from entering formal, structured employment in the mobility sector.
The beneficiaries were handed over keys to their vehicles at a ceremony in Lagos on Tuesday, July 21, 2026.
They now operate a LagRide vehicle under the platform’s Drive To Own programme, which allows a Captain to earn daily income while working towards full ownership of the vehicle at the end of the agreed payment term.
“The initial capital required to be onboarded was never going to come from these young men, so we provided that intervention financially so that they can have good employment.
“Lagos is a megacity. My agency runs the largest gaming and fintech conference on the continent every year, and when those delegates arrive, we do not want them driven around in poor vehicles. This is also employment for our own people, and we have a great deal of unemployment and underemployment in this country.
“These Captains are from Lagos Island Local Government, and they can now take care of their own families. Let me be clear about one thing. This is not a project. It is a programme, and it continues,” Mr Are stated.
Also speaking, the chairman of LagRide, Ms Diana Chen, said, “Today is just a new beginning, and more and more people will come. More local governments will join us, and one day we want to bring the Governor here so that this programme runs across the state.
“LagRide is a platform where a person comes to take a job and ends up owning the vehicle. It is also a platform that any government, or any organisation with a social development or CSR mandate, can use to empower the people they want to support. The people get their own asset at the end of it.”
On her part, the lawmaker representing Lagos Island Constituency I in the Lagos State House of Assembly, Mrs Omolara Oyekan-Olumegbon, said, “Everyone keeps saying there are not enough jobs for our youths. This is our own way of ensuring that they are empowered.
“When you give a person money, it is money, and it finishes. This is the difference between giving a man a fish and teaching him how to fish. You are giving these young men something they can use to take care of themselves, their families and their homes.
“We must thank the chief executive of the Lagos State Lotteries and Gaming Authority for doing this, and I must also thank Chief Diana Chen. Lagos Island is a commercial hub, and we intend to keep the flag flying. This is the beginning, and we will be coming back to ask for more.”
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