Intra-City Bus Fares in Nigeria Decline for Second Consecutive Month Despite Rising Fuel Costs
Despite the increasing pump prices of petrol and diesel in Nigeria, intra-city bus fares dropped for the second consecutive month in November, according to the National Bureau of Statistics (NBS) transport fare report. The average fare for bus journeys within the city per drop decreased by 6.23 percent, reaching N1,047.6 from N1,117.3 in October. The report suggests that the decline may be attributed to lower demand for transportation services in certain states, possibly due to rising transportation costs.
Key Points:
- Intra-city bus fares in Nigeria declined by 6.23 percent in November, marking the second consecutive month of decrease.
- The average fare for okada (motorcycle) transportation also dropped by 6.74 percent in November.
- Analysts suggest that the decline in fares may be due to lower demand for transportation services in states where data were collected, particularly in northern states facing rising transportation costs.
- President Bola Tinubu’s removal of the petrol subsidy in May led to a significant increase in pump prices, affecting public transportation providers and causing fare hikes.
- Despite the drop in bus fares, many Nigerians still allocate a substantial portion of their salaries to cover commuting expenses.
- The average retail price of petrol rose from N238.1 per litre in May to N648.9 in November, while the average retail price of diesel increased from N844.28 to N1,055.6.
- The removal of the subsidy impacted the transport and storage industry, contracting by 35.9 percent in Q3, pushing it into recession for the first time in 30 months.
- Road transport, a major contributor to the industry, is also in recession, contracting by 43.65 percent in Q3.
Source: BusinessDay