Business and Economy

Transport fares became more expensive in the month March 2024

Transport fares in Nigeria experienced an uptick in March 2024. According to the Transport Fare Watch report by the National Bureau of Statistics (NBS), the average fare for bus journeys within the city per drop rose from N951.76 in February 2024 to N969.32 in March 2024, marking a 1.85% increase month-on-month. Similarly, the average fare for bus intercity trips per drop increased to N7,152.97 in March from N7,002.97 in February 2024, showing a 2.14% rise. Air transport fares also saw an increase to N88,964.86 in March 2024 from N88,000 in March 2023, a 1.1% increase.

However, water transport fares decreased by 0.82% from N1,395.81 in February 2024 to N1,384.32 in March 2024. The surge in transportation costs is attributed to high fuel prices and energy product costs, primarily influenced by currency depreciation. These rising transport costs contribute to inflation, challenging efforts by authorities, notably the Central Bank of Nigeria (CBN), to manage inflation rates.

To address this issue, the government should stabilize the exchange rate and reduce petroleum product imports to prevent the transportation sector from being vulnerable to exchange rate fluctuations and global oil market changes. Additionally, increasing investment in the transport sector, particularly in developing a more efficient rail transport system, is crucial as it offers a cost-effective mode of transportation.

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