The Impact of Subsidy Removal: Transportation Costs Skyrocket by 98% in Nigeria

Find out how the removal of petrol subsidies in Nigeria has led to a whopping 98% surge in transportation costs, as revealed by the National Bureau of Statistics (NBS). Discover the implications of this development and the subsequent release of price lists by transport companies for intercity journeys.

In a major policy shift, Nigeria recently removed subsidies on petrol, which has had far-reaching consequences for various sectors. One area that has been significantly impacted is transportation, with costs soaring by an alarming 98% in just one month, according to the National Bureau of Statistics (NBS). This article delves into the effects of subsidy removal on transportation costs and highlights the release of price lists by transporters for intercity journeys.

Transportation Costs Surge by 98%:

The National Bureau of Statistics (NBS) has reported a staggering surge of 98% in transportation costs in Nigeria following the removal of petrol subsidies. In June, the average cost of transportation in Nigerian cities skyrocketed from N649.59 to N1,285. This increase of N636 in just one month has had a profound impact on the economy and the daily lives of citizens.

Intercity Journey Price Lists Released:

In response to the surging transportation costs, transport companies across Nigeria have released their price lists for intercity journeys. The aim is to provide clarity to passengers and ensure transparency in pricing. These price lists outline the breakdown of bus journeys within Nigerian cities per drop constant route and bus journeys charge per person, among other means of transportation.

Implications for Intra-City Transportation:

The removal of petrol subsidies has had a direct impact on intra-city transportation, with costs surging by 98%. This sudden increase has put a strain on commuters and businesses alike. The average citizen now has to allocate a larger portion of their income towards transportation expenses, disrupting household budgets and disposable income.

The Highest Cost of Transportation in Nigeria:

June 2023 has recorded the highest cost of transportation in Nigeria, as per the Transport Fare Watch list by the NBS. This indicates the severity of the situation and the urgent need for measures to mitigate the impact on the economy and the well-being of citizens.

The removal of petrol subsidies in Nigeria has led to a staggering 98% increase in transportation costs, according to the National Bureau of Statistics (NBS). This development has prompted transport companies to release price lists for intercity journeys, ensuring transparency and providing clarity to passengers. The surge in transportation costs poses significant challenges for both individuals and businesses, making it crucial for policymakers to address the issue promptly.