Interstate travellers in Nigeria should brace-up to pay more from August 25, following the decision of transporters to increase fares by 25 percent over rising costs of operation.
This was the resolution after a meeting of the operators and board of All Private Transport Company Owners, (APTCON), which was contained in a memo it issued yesterday addressed to operators under its aegis.
An internal memo, titled: “Notification of price increase effective 25th August 2022“, said the move is to prevent a situation where the operators run at a loss, and directed that private interstate passenger transport company owners of Nigeria are mandated to “increase bus fares across all interstate routes by 25% effective 25th August, 2022.
“This is sequel to the prevailing harsh economic situation as well as the recently announced increase in petrol pump price across the country, the board of APTCON, in collaboration with its member companies, have deliberated and have unanimously agreed that a marginal increase in interstate transportation fares is inevitable”, the memo further clarified.
The body also explained that this increase was borne out of the “downturn that has greatly affected all sectors of the economy especially transportation. In response to the high cost of operations, while many trade associations have increased charges as a means of survival, some others, like the elitist airlines, have received post-pandemic intervention funds from the government”.
Listing challenges facing the sub-sector, the explained fuel price has risen from N165 to N179, a percentage increase of 7%, cost of diesel has risen from an average of N250 a year ago to over N800 today (percentage increase of 220% while the inflation rate hits a 65-month high of 18.6% in June 2022 significantly increasing cost of operations by at least 50%.
The operators said: “These challenges have taken a significant toll on the revenue of private transport company owners across Nigeria as most transporters are either operating at a loss or at cost. While some have had to shut down operations completely, many others have expressed their inability to pay salaries much less run profitably.
In order to mitigate losses by transport operators, the body implored “all private interstate passenger transport company owners of Nigeria to increase bus fares by at least 25% effective 25th August, 2022”.
