The Federal Government’s proposed 50% reduction in interstate transport fares, initially scheduled to begin on December 20, 2024, may now commence on December 24. The fare reduction is aimed at easing high transport costs during the festive season.
Last Thursday, the Federal Government, through the Ministry of Transportation, announced an agreement with road transport sector stakeholders to support Nigerians traveling during the holidays. As part of the initiative, the government will cover 50% of the transport fares for travelers, alongside the launch of free rail transportation, which began on December 20, 2024.
According to Olujimi Oyetomi, the Director of Press and Public Relations at the Federal Ministry of Transportation, this effort is part of a broader initiative by President Bola Tinubu to provide transportation palliatives for Nigerians celebrating Christmas and New Year.
The agreement was signed between the Federal Government and key transport stakeholders, including the National Union of Road Transport Workers, the Road Transport Employers Association of Nigeria, and the Association of Luxury Bus Owners of Nigeria, among others.
Oyetomi further explained that under the arrangement, passengers traveling from Abuja and Lagos (Oshodi) to various destinations across the country will pay only half of the usual fare.
However, a source close to the Ministry of Transportation revealed on Sunday that while the 50% road fare reduction was initially set to start on December 20, it was delayed due to documentation issues that are currently being addressed. The official also mentioned that although the rail initiative targets the transportation of 340,000 Nigerians during and after the holidays, details of the road transport plan remain unclear.
“The minister will most likely unveil the scheme tomorrow (Monday) at the Eagles Square and detailed information on the development will be given accordingly.
“We were supposed to commence on the (December) 20th but for some imperfection. By God’s grace, it should commence on Tuesday. But the MoU and others have been adequately signed.”
When contacted, the Chief Executive Officer of God is Good Motors, Enahoro Ekhae, confirmed signing the MoU, but noted that the scheme had yet to start.
“Yes, we indeed signed an MoU but we are yet to start the implementation,” he said.
When asked about the reason for the delay he replied, “It is the government that can tell that. We as GIGM, will commence once we agree with the government to start.”
Meanwhile it was gathered from the Federal Ministry of Finance on Sunday that the initiative was delayed due to funding challenges.
The programme, which was expected to commence on December 20, had been stalled as transport unions await payments promised under the scheme.
Impeccable sources at the finance ministry told one of our correspondents that efforts to secure funds from the were ongoing, with stakeholders optimistic about a resolution in the coming days.
The initiative, which aims to provide subsidised transportation through partnerships with transport unions, was to commence at the Eagle Square in Abuja but failed to take off.
“We have signed the MoU, but the thing is that the minister is of the opinion that the transport unions ought to get their money before they start so that we can have accurate records,” a source at the finance ministry stated
“The thing is that the transportation minister has been going to the finance ministry to get the money, which includes that of the rail.”
While the rail component of the initiative continues because it is exclusively managed by the Federal Government, road transport remains stalled due to the absence of government-owned buses.
“The route involves transportation unions. The Federal Government does not have buses that it can put out to run the show. We want the transport unions to take ownership and run. Account for the money that is given to you because we have some monitoring instruments,” the source explained.
Despite efforts to secure funds, the process has been slow. “He (the minister) has been going to finance. He couldn’t get the money So, that’s why we couldn’t start.”
The plan includes a payment of 50 per cent of an agreed average fare to transport unions for each route, covering road trips from Abuja to state capitals, and from Oshodi in Lagos to other destinations.
“The government is supposed to pay the transport unions 50 per cent of the average that we already arrived at for each of the routes,” the source clarified.
However, no funds have been disbursed yet, leaving transport unions unable to mobilise. “All transport unions that we signed the MOU with will have to bring vehicles to Eagle Square. So nobody has been given money yet. And therefore, everybody has been asked to be on hold.”
