Transport fares across most modes of transportation in Nigeria witnessed an increase in March 2024.
The Transport Fare Watch of the National Bureau of Statistics (NBS) revealed that the average fare paid by passengers for bus journeys within the city per drop increased from N951.76 in February 2024 to N969.32 in March 2024, representing a 1.85% increase on a month-on-month basis.
Similarly, the average fare paid by commuters for bus intercity per drop rose to N7,152.97 in March compared to N7,002.97 in February 2024, indicating an increase of 2.14%. The air transport fare increased to N88,964.86 in March 2024 from N88,000 recorded in March 2023, an increase of 1.1%.
However, transport fares for water transport recorded a decline in the period, falling by 0.82% from N1,395.81 in February 2024 to N1,384.32 in March 2024.
The rise in transportation costs in most modes of transportation is due to the high cost of fuel and related energy products, driven mainly by the depreciation of the currency. Rising transport costs are one of the major propellers that continuously fuel inflation, undermining all attempts by authorities, particularly the Central Bank of Nigeria (CBN), to control inflation.
The government should ensure that the exchange rate is stable and reduce the importation of petroleum products. Continuous importation of petroleum products will make the transportation industry vulnerable to fluctuations in the exchange rate and the global oil market.
The government should also increase its investment in the transport sector, especially in creating a more reliable and efficient rail transport system as it is an affordable means of transportation.
CSEA Africa
