As Christmas approaches, Nigerian travelers are grappling with a record-high transport inflation rate of 30.54% in November 2024, according to the National Bureau of Statistics (NBS). This means an escalation in travelling costs for both individuals and businesses.
The surge in transport costs has been fueled by economic policies and external factors. The main reason is that in May 2023, the government stopped helping with the cost of fuel. This caused the prices of petrol and diesel to go up a lot. Petrol and diesel are very important for cars and buses.
The devaluation of the naira, from ₦769 per US dollar in June 2023 to ₦1,550 per dollar in December 2024, has further exacerbated costs, impacting fuel imports and spare parts prices.
Persistent challenges, such as poor road infrastructure and limited rail transport options, have compounded the inefficiencies and costs in the sector.
Transport inflation has risen from 23.87% in May 2023 to 30.54% in November 2024, an increase of 6.67 percentage points in 18 months. During the same period, Nigeria’s headline inflation rate surged from 22.41% to 34.60%, the highest in nearly three decades.
To ease the financial burden, President Bola Tinubu approved free nationwide train rides from December 20, 2024, to January 5, 2025. Also, the government said it will cut interstate bus fares by 50% by working with major transport companies.
