10% of Fuel Subsidy Can Improve Transport System, Says Firm

Emameh Gabriel in Abuja.

Nigeria’s Indigenous tech-powered mobility company, Nairaxi has stated that 10 per cent of the current N6.4 trillion being spent on fuel subsidy could go a long way to improve or support road transport systems in Nigeria.

The Co-founder/CEO of Nairaxi, Kingsley Eze made this disclosure in a statement made available to journalists in Abuja.

He stressed that an integrated and Intermodal Transport Scheme would do more than expected, not only by resolving the crisis that might trail the removal of fuel subsidy but also create new opportunities in the country.

He added that the Nairaxi Transport system would be capable of servicing everyone, both VIPs, top executives, workers, students and even last mile commuters.

 “The final planned removal of fuel subsidy by the federal government in June 2023 may awaken new hopes for Nigerians and especially the public transport system, as Nigeria’s Indigenous tech-powered mobility company Nairaxi, suggests the adoption of her Integrated and Intermodal Transport Scheme powered by smart technology.

“Recall that the Minister of State for Transportation, Prince Ademola Adegoroye, said President Muhammadu Buhari has already approved the proposed special scheme for mass transit to be driven by transport operators for ease of transportation across the country, especially with the proposed removal of fuel subsidy.”

According to National Bureau of Statistics, transportation cost is the second most expensive cost among households in Nigeria, after housing cost.

He stated that interventions in road transport affects more Nigerians directly, saying while the government was spending so much to improve the rail system, road transport must also be properly considered.

He further explained that the impact would be impressively commendable in directly supporting Nigerians, especially through partnerships with private transport operators like Nairaxi and others that have distinguished themselves in delivering value-services through technologies on the mobile app.

“We all know that revamping the road transport system will have a direct, immediate and positive impact on Nigerians. I therefore advice that if a fraction of 640billion naira is spent on road transport which is just 10percent of the N6.4 trillion spent annually on fuel subsidy, there will be better impact and improvements in road transport system.”

He further stated that the N5,000 proposed by the Minister of Finance, Mrs. Zainab Ahmed for transport allowances would work better if there was a verifiable and transparent structure like the, “pre-loaded transit cards given out to beneficiaries and service fulfillment by Nairaxi.”

He, however cited instance on the Abuja Mass Transit Scheme which may have failed as a result of bad management systems.

He, therefore encouraged federal government and the Federal Ministry of Transportation to engage private transport operators with fundamental and developmental vision that have the required structures, expertise and technology to drive the implementation of President Buhari’s interest on special scheme for mass transit to be driven by transport operators for ease of transportation across the country.

“Hundreds of thousands of vehicles are currently using the smart and affordable Nairaxi Mobile application in the city of Abuja, and with several motorbikes readily available to deliver on-demand services anywhere and at any time in the Federal Capital Territory, Nairaxi is sure ready to assist the federal government to ameliorate the harsh economic conditions that experts have projected to be a direct consequence of the removal.”