Fuel Subsidy: Transport Fares Rises By 283% – NBS

The average cost of bus transportation within Nigerian cities, according to the National Bureau of Statistics, rose from N122.83 in January 2017 to N470.83 in December 2021.

Based on the latest data of Transport Fare Watch report, Prime Business Africa can report that the cost of intra-city bus transportation has risen by 283 per cent or N384 in four years.

In 2017, for an instance, Abuja had the highest intra-city bus transport cost at N290.55 while Borno had the lowest at N50.

Also in 2021, Zamfara had the highest intra-city bus transport cost at N700.22 while Abia had the lowest at N294.44.

The data showed that the lowest cost in 2021 is 2.4 times higher than the average cost in 2017.

However, despite the massive increase in the cost of bus transportation, the average price of petrol increased by only 11.48 per cent within the period under review.

The average price paid by consumers for premium motor spirit increased from N148.7 in January 2017 to N165.77 in December 2021.

Like the cost of bus transportation, the cost of fuel subsidy has also been increasing.

In 2017, the Nigerian National Petroleum Corporation said that it spent N144.53bn in subsidising premium motor spirit.

A breakdown of the amount spent on subsidising petrol on a monthly basis in 2017 showed that in January, February, March, April, May and June, N37.26bn, N6.3bn, N8.207bn, N8.207bn, N7.743bn and N11.79bn were spent by the NNPC respectively; while for the months of July to December, the NNPC spent N10.25bn, N7.939bn, N7.522bn, N6.849bn, N16.785bn and N15.677bn, respectively.

In 2021, the NNPC said fuel subsidy gulped N1.43tn, although there was no record for under-recovery in January.

In July, August, September, October, November and December, the NNPC spent N103.28bn, N173.13bn, N149.28bn, N163bn, N131.4bn, and N270.83bn, respectively. Within the four-year period under review, the cost of fuel subsidy rose by 889.41 per cent.