Tinubu cuts transport fares by 50 percent – President Bola Tinubu has mandated a 50 percent reduction in land transportation charges across the country from today to January 4, 2024.
During the same period, the President also approved a zero fare for train transportation in all federation states.
The Nigeria Labour Congress, NLC, rejected the plan as unrealistic, claiming that the government cannot dictate low fares by fiat.
Mr. Dele Alake, Minister of Solid Minerals Development and Chairman of the Inter-Ministerial Committee on Presidential Intervention, stated this to State House correspondents at the Presidential Villa in Abuja.
Alake, who was flanked by the Ministers of Information and National Orientation, Mohammed Idris, Transportation, Saidu Alkali, and Special Adviser on Information and Strategy, Bayo Onanuga, said all logistics for implementation had been worked out with the Minister of Transportation, transport unions, and luxury bus owners.
For interstate transportation, the luxury buses have 22 authorized routes.
“In the spirit of Christmas and the end of year festivities, President Tinubu, in another demonstration of his love for Nigerians, has approved that the Federal Government should intervene to bring down the cost of public transportation to allow our compatriots who want to travel to visit their loved ones and hometowns to do so without stress and the extra burden imposed by the high cost of transport around this period. he said.
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“The President is well aware of the recent increase in cost of inter-state transportation and even for air travel. Traditionally, our people love to travel during Christmas and the end of year to be with families and friends and this has been the practice for ages.
“We also know that globally, intra-country travels and movement of people, goods and services always peak around Christmas and end of the year because of socio-gravitational pull of the period which transporters always cash on to increase fares astronomically.
“In recognition of the economic situation of the country which he is working very hard to turn around, President Tinubu wants Nigerians to be able to travel within Nigeria to wherever they want to go to meet their loved ones without the extra burden of paying exorbitantly for inter-state public transportation.
“This special presidential intervention will commence Thursday, December 21. It will end on January 4, 2024.
“From tomorrow (today), Nigerians wishing to embark on inter-state travel to any part of the country from Abuja, Lagos, Kano, Kaduna, Enugu, Port Harcourt, Owerri, Ibadan, Akure, Maiduguri, Sokoto, and other major inter-state transportation hubs will be able to do so at half the cost.”
Saedu Alkali, Minister of State for Transport, said why he chose luxury bus unions: “Why we decided to use luxury buses unions is because they are more organized and more structured. So, we held a meeting with the president of the union and they gave us an idea of how much they charge on a normal day but during festive when the buses travel, they return empty and it is on that account that they have to increase the fair during festivities. That has been taken into account. We held several meetings with Mr President.
“And why we decided to have 50 percent for the land transport, when you have this kind of initiative or programme to implement, you have to be mindful of the security situation. If you say it is for free, even those that did not intend to travel will just go to the park and say I want to travel. But with this 50 percent, they have the ticketing system.”
NLC says a 50% reduction in transportation fares is unfeasible
The NLC, in response to the development, criticized the President’s 50 percent reduction in transportation charges across the country as unrealistic, claiming that the President cannot dictate reduced fares by fiat.
Mr. Joe Ajaero, President of the National Labor Congress, stated, “The question is whether the President or government has powers to decree how much should be charged by transporters throughout the country in the free market economy of which he is the chief proponent?”
“He clearly lacks such powers and cannot pretend to in any way prescribe what private transporters can or cannot charge when his ill-conceived policies are driving the cost of transportation out of the reach of ordinary Nigerians.
“If this is not the usual propaganda that I think it is, how would government want to implement such directive? Perhaps, pay for all the buses and ask Nigerians to use them freely or what?
“These are unworkable logistics and they know it. Very simple; the cost of PMS and other petroleum products have gone up which has driven the cost of every other thing up. You do not expect a transporter to buy Petrol at N630 per litre and not recover his cost through hiking transport fares.
“It is the poor masses like us that will always bear the brunt. If the government had listened to wise counsel from NLC to expedite action on the mass transportation system through the CNG alternative, which was our brainchild, perhaps, those buses would be on the road now providing cheaper services and low fares to Nigerians
“You cannot decree low fares by fiat. It does not work that way. Businesses are stimulated either positively or negatively by government policies. Tinubu’s economic policies have led to this mass suffering and the angst Nigerians are faced with.
“The government should stop lying to Nigerians and face the serious business of governance. Putting people first in all their policies and actions is what will solve the problem but when everything is sacrificed on the altar of politics, this is what you get – massive suffering all over the nation.”
Tinubu cuts transport fares by 50 percent, It’s a huge joke —Transportation companies
In addition, luxury bus operators in Abuja expressed surprise and pretended to be unaware of the development.
According to a correspondent who visited Young Shall Grow Motors, the executive bus fare from Abuja to Owerri and Umahia costs N35,100, Abuja to Enugu and Onitsha costs N35,100, and Abuja to Abia and Port-Harcourt costs N40,000.
Morning Hiace bus rates are N30,100 from Abuja to Port-Harcourt, Aba, Owerri, and Umahia, and N27,100 from Abuja to Enugu and Onitsha.
Night flights from Abuja to Lagos cost N26,100, N22,100 from Abuja to Onitsha, N24,100 from Abuja to Owerri, and N26,100 from Abuja to Abia and Port-Harcourt.
According to one of the top officials of Young Shall Grow Motors, Abuja Branch, who spoke to our correspondent on the condition of anonymity, the government’s move was a PR stunt, and they were not even contacted prior to the decision.
She stated that the aforementioned prices would not be reduced, but will be raised soon.
“They are not serious,” she stated, implying that the government had begun executing the directive on train services. This country is a farce. They believe that private operators like doing what government operators do. What fuel do trains use? And what fuel do busses use? Please allow us to be guided.
Another Ekeson transport employee, Emeka Ndubuisi, of the Abuja branch, stated, “I am actually not sure if they included the private sector in this.” They’d be humorous if they didn’t know we were watching. We would have been asked to a meeting to discuss this if we had been carried along by now, but no.
“However, reducing transportation fares by half is an impractical and unsustainable decision for interstate transportation operators.”This decision completely disregards the operational costs of running a transportation company. Fuel prices, maintenance costs, and employee pay have all been constantly rising, and lowering tickets by such a large amount will just put additional burden on our already stressed business.
Another God is wonderful Motors, GIGM, Utako, Abuja, counter personnel who chose anonymity said: “Even though the idea is good, it is not possible o.” We don’t have faith in this government. There are far too many lies.
“In fact, the decision to cut transportation fares by half appears hasty and uninformed.” They are unaware that interstate transportation companies have been facing financial difficulties for years as a result of increased 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.”
NRC, RTEAN, and NARTO will comply
Meanwhile, Mr. Fidet Okhiria, Managing Director of the Nigerian Railway Corporation, NRC, responded: “This is a good step in the right direction.” All preparations are being made to ensure that implementation begins tomorrow (today). This command will be carried out by all of my operational officers and partners.
“The method for this is for us to call on travelers to purchase their tickets online because it is the only way to prevent rowdiness at the station.” So, purchase your train ticket online to gain entry to the train. We expect Nigerians to arrive at the station without tickets.
“We continue to assume that people will get their tickets for free online.” We have instructed our partners to unlock the platforms so that people can obtain complimentary tickets. But I demand that you obtain your ticket beforehand before heading to the station tomorrow (today).”
The National Association of Road Transport Owners, NARTO, praised the government’s move and offered complete cooperation, stating that the organization would comply.
While praising the effort, NARTO’s Executive Secretary, Aloga Ogbogo, challenged the Federal Government with ensuring its successful implementation.
“Currently, we cannot confirm if that is the reality, but I know we were invited to a meeting by the Ministry of Trade and Commerce and we were briefed on how they intend to proceed,” he said. We provided feedback, and the policy is a start in the right way.
“It will make it easier for Nigerians to travel during the holiday season.” The administration is demonstrating concern for Nigerians’ well-being, which I believe is a step in the right direction if properly handled.
“The payment modalities will be devised by a consultant if travelers pay to the transport company and the company generates a manifest and the transport company receives a refund based on the manifest, which will contain the number of people and the discount.”
“In addition, a platform will be developed for transporters to login and present their details regarding where they are going and the amount paid.” Nigerians will benefit if it is properly executed.
Similarly, Yusuf Adeniyi, Secretary General of the Road Transport Employers’ Association of Nigeria, RTEAN, stated, “The government has good intentions of alleviating the hardships of commuters during this festive period.” We’ve been working on the modalities and how to do it successfully so that it can become a reality.
“To be honest, it is real, and I can assure you that anyone who boards our vehicles from various places and locations throughout this country beginning tomorrow (today) will enjoy such facilities.”
“All necessary machinery and compensation modalities have been installed.” The federal government is serious about this. They have reached a contract that everybody who boards a vehicle with the relevant information, all we strive to do is put correct transparent arrangements in place so that there will be no fraud, and the government has proven willingness to pay.”
Fares are skyrocketing
Meanwhile, with less than five days till Christmas, interstate travel prices levied by road transport operators have increased by around 50%.
There are also concerns that fares would rise above 100% as more people fly from large cities to their hometowns for the end-of-year festivities.
This comes just a few months after the tickets were raised in response to the increase in fuel prices caused by the loss of the fuel subsidy.
According to a Vanguard poll conducted yesterday, the cost of a minibus ride from Lagos to Onitsha had climbed from N20,000 to N30,000.
Transporters ascribed the increase in transportation rates to the fact that travel over the Christmas holiday season was typically one-sided, from major cities like Lagos to communities, particularly in the country’s east.
“According to Mr. Chijioke Mbaonu, a Toyota Sienna commercial driver, “the price increase is usually intended to offset the cost of fuel used to return to the city to pick up waiting clients in Lagos.”
“We transport a full load from Lagos and return empty because there will be no passengers returning to Lagos.” People choose to spend Christmas in the villages with loved ones they haven’t seen in ages at this time.”
He predicted that the tendency would be reversed after the Christmas and New Year’s celebrations, but not as dramatically as it had been because passengers would not be as rushed as they were during the Christmas week.
