The Federal Government of Nigeria has proposed a 50% reduction in interstate transport fares for the Yuletide season, aiming to alleviate the financial burden of holiday travel for citizens. This initiative, originally slated to begin on December 20, 2024, has been tentatively rescheduled to December 24, 2024, due to logistical and financial hurdles. The program encompasses both road and rail transport, with the rail component, managed directly by the government, already underway, offering free transportation to an estimated 340,000 Nigerians. However, the road transport aspect, involving partnerships with private transport unions, has encountered delays.
The road transport fare reduction hinges on a collaborative agreement between the Federal Ministry of Transportation and key stakeholders in the sector. These include major transport unions such as the National Union of Road Transport Workers (NURTW), the Road Transport Employers Association of Nigeria (RTEAN), and the Association of Luxurious Bus Owners of Nigeria (ALBON). Under this Memorandum of Understanding (MoU), the government commits to subsidizing 50% of the transport fare for passengers traveling from designated departure points – Abuja and Oshodi (Lagos) – to various destinations nationwide. Participating transport companies would then charge passengers only half the usual fare.
The postponement of the road transport fare reduction stems primarily from funding challenges. Although the MoU has been signed, the disbursement of funds to the participating transport unions has been delayed, hindering the program’s launch. The Minister of Transportation is reportedly engaging with the Ministry of Finance to expedite the release of the necessary funds, which are also intended to cover the costs of the free rail transportation. A source within the finance ministry indicated that the delay is partly due to the Minister of Finance’s insistence that funds be released to the transport unions upfront to ensure accurate record-keeping and accountability.
The government’s objective is to empower the transport unions to manage the subsidized road transport scheme, ensuring transparency and effective implementation. Unlike the rail component, where the government directly operates the trains, the road transport program relies on private operators. The government intends to pay the participating unions 50% of a pre-agreed average fare for each route, covering trips from Abuja to various state capitals and from Oshodi, Lagos to other destinations. This approach aims to leverage the existing network and infrastructure of private transport operators while providing financial support to ensure affordability for passengers.
The delay in fund disbursement has left the transport unions unable to mobilize their vehicles for the subsidized service. The original plan involved assembling the participating vehicles at Eagle Square in Abuja to mark the program’s launch. However, without the promised funds, the unions cannot commence operations. Despite the setback, there is optimism that the funding issue will be resolved imminently, with the Minister of Transportation actively pursuing the matter with the Ministry of Finance. The initiative carries the weight of a presidential directive, which is expected to accelerate the release of the required funds.
The proposed transportation palliative reflects the government’s commitment to easing the financial strain on citizens during the festive season. By subsidizing both road and rail transport, the initiative aims to facilitate smoother and more affordable travel for a significant number of Nigerians. While the road component has faced initial delays, the government’s ongoing efforts to secure funding and collaborate with transport unions suggest that the program is poised to commence shortly, allowing travelers to benefit from the reduced fares. The success of this initiative will depend on the timely release of funds and the effective collaboration between the government and the private transport sector.
