By Ayomide Otitoju
The Federal Government’s proposed 50% reduction in interstate transport fares, initially scheduled to commence on December 20, 2024, has been delayed and is now expected to start on December 24. This initiative, aimed at easing high transport costs during the festive season, has faced administrative and funding hurdles.
The scheme, announced by the Ministry of Transportation last Thursday, is part of President Bola Tinubu’s broader plan to provide palliatives for Nigerians celebrating Christmas and New Year. Under the arrangement, the government will cover half of the transport fare for travelers, while offering free rail transportation, which began as planned on December 20.
Agreements with Key Stakeholders
The Ministry of Transportation, through its Director of Press and Public Relations, Olujimi Oyetomi, disclosed that the agreement was signed with key stakeholders, including the National Union of Road Transport Workers, the Road Transport Employers Association of Nigeria, and the Association of Luxurious Bus Owners of Nigeria. Passengers departing from Abuja and Lagos (Oshodi) to destinations nationwide are expected to benefit from the subsidy.
Delay in Implementation
Sources within the ministry revealed that the delay stemmed from documentation issues and funding challenges. A senior official, speaking anonymously, explained that while the scheme was supposed to launch on December 20, final arrangements were incomplete.
“The minister will likely unveil the scheme on Monday at Eagle Square, with detailed information to follow,” the official stated. “By God’s grace, implementation should commence by Tuesday.”
Stakeholders Await Funding
Enahoro Ekhae, CEO of God is Good Motors (GIGM), confirmed the signing of a memorandum of understanding (MoU) but noted that implementation had yet to begin. “We signed the MoU, but it’s the government that can explain the delay,” he said.
Officials at the Ministry of Finance cited funding challenges as the primary cause of the delay. Transport unions, essential to the scheme’s success, are yet to receive the promised payments.
“The transport unions must receive funds to ensure transparency and accountability,” a finance ministry source disclosed. “Efforts to release the funds are ongoing, with the transportation minister engaging the finance ministry to expedite the process.”
Rail Operations Continue Uninterrupted
While the road transport subsidy remains stalled, the rail component of the initiative has been operational, as it is exclusively managed by the Federal Government. The road subsidy’s dependence on private transport unions has complicated its rollout.
“We want transport unions to take ownership and run the operations, but no funds have been disbursed yet, leaving them unable to mobilize,” a source explained.
Optimism for a Swift Resolution
Despite the delays, stakeholders remain optimistic. The transportation minister is reportedly working closely with the finance ministry to resolve the funding bottleneck.
“It’s a directive from the President, and we believe the funds will be released soon to ensure the program begins as planned,” a finance ministry source stated.
The initiative is expected to cover road trips from Abuja and Lagos to state capitals, with the government paying 50% of the average agreed fare for each route. Transport unions will also be required to bring vehicles to Eagle Square for monitoring purposes.
Conclusion
The Federal Government’s transport subsidy initiative represents a critical effort to ease the financial burden on Nigerians during the festive season. While administrative and funding challenges have caused delays, authorities are working to ensure the scheme begins by December 24, providing relief to millions of travelers.
