INDEPENDENT
President Bola Tinubu on Wednesday announced a 50% cut in transportation conveying passengers for the yuletide season on inter-state routes for only Luxury buses.
The announcement made through Mr Dele Alake, Minister of Solid Minerals, noted that all train routes are free beginning from Thursday December 21st 2023 to 4th January 2024, explaining that the initiative was a presidential intervention on public transportation targeted at the masses and the gesture was in the spirit of Christmas and the end of year festivities.
The announced 50% reduction in the cost transportation was taken as a joke by many travellers who knew that the transporters engaged are infinitesimal to the huge numbers of transporters involved in transporting people and routes covered does not cover places mostly visited by the poor of the poor in the society.
Meanwhile, some luxury bus operators in Abuja, expressed shock and feigned ignorance over the development.
Recall on May 29, when President Tinubu was being sworn in, he announced the removal of fuel subsidy, which many gleefully said was overdue only to wake up on the following morning to the rude shock of finding transport fares increased by over 100 percent across board.
The cost of a litre of petroleum that used to be less than N200 before the removal of the fuel subsidy, initially rose to N530 but now sold for between N600-N680 in most filling stations in Lagos, while diesel is oscillating between N1450-N1600 per litre, obviously the highest cost of buying the products in the history of transportation in Nigeria.
Resulting in the high cost of transportation, especially in this yuletide season, coupled with the callous reason given by transporters who claim that most of the trips in the season is one sided, stressing that they mostly return with empty vehicles on the return trips.
Adetayo Olaniyi of the Department of Transport Management Technology, Federal University of Technology, Akure, Ondo State, in his research finding, said Fuel is a major factor among many others influencing transport costs and transport rates in Nigeria.
“It plays a significant role in the production of goods and services in all sectors of the economy, which is why countries find it necessary to subsidize and ensure citizens have access to fuel which is of national importance. Fuel in Nigeria is an inelastic product both at demand and supply sides, which means that it is very difficult for consumers to find alternatives to the use of it in their daily lives.
“For a developing country like Nigeria, fuel subsidy is considered as a major tool to enhance citizens welfare most especially the middle and low income earners, meanwhile, the disbursement of fuel subsidy must be properly monitored to guide against corruption as shown in the past administrations.
Among other major factors that influence transport costs and transport rates in Nigeria is fuel. Fuel plays a significant role in the production of goods and services in all sectors of the economy, that is why countries find it necessary to subsidize and ensure citizens have access to fuel which is of national importance, Olaniyi said.
Femi Olasiyun, a stockbroker, said, “Any slight increase in the pump price of fuel without a palliative measure in place inflicts economic hardship on Nigerians and usually generates resistance and protest from the organised labour, civil society coalition and the masses in general.
The reason being that the fuel subsidy is the principal way ordinary Nigerians benefit from the country’s oil wealth. Fuel subsidy often leads to increase demand for fuel due to over use and waste arising from reduced
In the few days to Christmas when the rate of journeys, travelling, commuting, movements and hustles quadrupled in most cities, fuel queues resurfaced, resulting in panic buying while motorists and commuters groan over product unavailability and increase in the pump in most stations.
A trip from Lagos to Onitsha via a minibus, which hitherto attracted N20,000 had risen to N30,000, with fears that the fares would go further up beyond 100 percent as more people travel from the major cities to their hometowns for the end of the year’s festivities.
Transporters attributed the hike in transportation fares to the fact that movement within the Christmas festive period was usually one-sided, from the main cities like Lagos to the villages, especially the eastern parts of the country.
“According to Mr. Chijioke Mbaonu, a Toyota Sienna commercial driver, “The hike in price is usually designed to cushion the cost of fuel used to return to the city to pick waiting passengers in Lagos.
“We carry full load from Lagos and drive back empty because there won’t be any passengers returning to Lagos. At this period, people prefer to celebrate Christmas in the villages with their loved ones who they have not seen for ages.”
He said that the trend would also be reversed after the Christmas and New Year celebrations but not as high as experienced because passengers do not rush like during the Christmas week.
One of the top officials of Young Shall Grow Motors, Abuja Branch, who spoke to Journalists on condition of anonymity, said government’s 50% cut is a mere publicity stunt, stating that they were not even consulted prior to the decision.
Also, another staff of Ekeson transport, Emeka Ndubuisi, Abuja Branch, said: “I am actually not aware if they carried the private sector along in this. They are funny if they didn’t because we are not aware. If we were carried along by now we would have been called for a meeting to discuss this but no.
“On the other hand, reducing transport fare by 50 percent is an impractical and unsustainable decision for interstate transport operators. This move completely disregards the operational costs involved in running a transport business. Fuel prices, maintenance expenses, and employee salaries have all been steadily increasing, and reducing fares by such a significant amount will only further strain our already struggling industry.
Another counter staff of God is Good Motors, GIGM, Utako, Abuja, who preferred anonymity, said: “Even though the idea is a good one, but, it is not possible. We don’t trust this government. The lies are too much.
“In fact, the decision to reduce transport fare by 50 percent seems like a hasty and uninformed move. They fail to realise that interstate transport operators have been grappling with financial challenges for years due to rising operational costs.
“Instead of offering feasible solutions to address these issues, implementing such a drastic fare reduction will only lead to further financial instability for transport operators.”
Meanwhile, reacting, the Managing Director of the Nigerian Railway Corporation, NRC, Mr. Fidet Okhiria, said: “This is a good step in the right direction. All preparations are underway to ensure that the implementation commences tomorrow (today). I will call all my operational officers and partners to carry out this directive.
“The modality for this is us calling on the travelers to get their tickets online because that is the only way to prevent rowdiness at the station. So, get your ticket online to have access to board the train. We are expecting Nigerians to come to the station without tickets.
“We still assume that people will get their tickets online free of charge. We have told our partners to open the platforms, so that people can get the tickets for free. But, I insist you must first get your ticket before coming to the station from tomorrow (today).”
