Writer: ABHULIMHEN THERESA
President Bola Tinubu announced the complete removal of the controversial fuel subsidy during his May 29th, 2023 inauguration.
This announcement has since led to increased transport fares in Nigeria, especially in the South West region.
Public transportation systems, which include buses, minibuses, and shared taxis, rely a lot on fuel to run smoothly. When the fuel subsidy was removed, the cost of fueling these vehicles increased significantly, a Techeconomy investigation has shown.
As a result, transportation providers frequently raised their prices to compensate for the higher costs of operating their vehicles. This adjustment directly affected individuals who rely on road transportation, as they suddenly had to spend more money on getting around.
This report examines the increasing transportation costs in Nigeria’s South-West region, particularly on major routes like Lagos to Akure, Oshogbo, Abeokuta, and Ibadan. Furthermore, we will explore the viewpoints of road transport operators and traders who have directly experienced the repercussions of these adjustments.
Lagos to Akure: Then and Now
Before the removal of fuel subsidies, a journey from Lagos to Akure was relatively affordable for commuters. Transport fares were within reach for the average citizen. However, since the subsidy removal, prices have surged dramatically.
A trip that once cost ₦4,100 may now set passengers back ₦5,600 or more, representing a staggering 36% increase in transport costs.
Lagos to Oshogbo
Similar to the Lagos-Akure route, the Lagos to Oshogbo journey has witnessed a significant price hike.
Before the subsidy removal, travelers could expect to pay around ₦6,000 for this trip. Today, the fare has surged to approximately ₦7,200, signifying a substantial 20% increase in transportation expenses.
Lagos to Abeokuta
Lagos to Abeokuta, a crucial route for many commuters, has also felt the brunt of fuel subsidy removal. Previously, a journey to Abeokuta cost around ₦1,000. Now, passengers must budget for approximately ₦2,000, marking a notable 100% rise in transport fares.
Lagos to Ibadan
The Lagos to Ibadan route, one of the busiest in SouthWest Nigeria, has witnessed its fair share of increased fares. Before subsidy removal, this journey was accessible at roughly ₦1,500. Today, commuters have to allocate around ₦2,500 for the same trip, resulting in a 67% surge in transportation costs.
Lamentations by Transporters and Traders
To gain a deeper understanding of these transformations, Techeconomy reporter interviewed transporters and traders actively operating within the South West Nigeria.
A passenger, simply identified as Ogunrinde, said he paid ₦2,200 from Lagos to Abeokuta instead of the usual ₦1000.
“Before, I used to spend ₦1000 from Lagos to Abeokuta, but today I paid ₦2,200,” Ogunrinde said.
According to Mr. Adebayo, a transporter, the elimination of fuel subsidies has had a substantial impact on their profit margins. They are compelled to raise fares due to the rise in fuel prices, affecting other expenses such as maintenance and insurance.
Mrs. Jumoke, a trader who frequently travels between Lagos and Akure for business purposes, conveyed her discontent, stating, “The increase in transportation fares is causing difficulties for my business. I used to travel twice a week, but now I can only afford to go once a week. This is directly affecting my sales.”
Government’s Perspective
In response to the increasing transport fares, the government has stated that the removal of fuel subsidies was necessary to address economic challenges and promote long-term sustainability.
They argue that the subsidy was costly and prone to corruption, and its removal would free up funds for critical infrastructure development.
However, critics argue that the government’s approach has placed an undue burden on the average citizen, particularly those in the lower income brackets.
The sudden and substantial increase in transport fares has made it more challenging for people to access basic services and has led to increased inflation.
[Feature Image Credit]
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