TheNewsGuru

Tag: Transportation hike

  • Subsidy Removal: UNILAG Management Addresses Surge in Campus Transportation Fares

    Subsidy Removal: UNILAG Management Addresses Surge in Campus Transportation Fares

    In response to the outcry from students over a significant increase in campus transportation fares, the University of Lagos (UNILAG) management has issued a directive to regulate the cost of transportation within the campus and urged other vendors to maintain their existing prices until the end of June.

    The surge in transportation fares on campuses across the country came in the wake of the removal of fuel subsidy by the Nigerian Government which informed the recent announcement of an increase in pump prices of petroleum products by the Nigerian National Petroleum Company Limited (NNPCL).

    During his inauguration speech as Nigeria’s 16th President on Monday in Abuja, President Tinubu emphasized that fuel subsidy was not accounted for in the 2023 budget beyond June.

    Tinubu justified the removal of the subsidy, stating that it had disproportionately favoured the wealthy over the poor, adding that his administration would redirect the funds towards investing in public infrastructure, education, healthcare, and job creation.

    The NNPCL subsequently raised the petroleum pump price from N185 to a range between N488 and N557 and among the consequences of the pump price hike is the surge in transportation fares on Nigerian tertiary institution campuses.

    Students across various campuses, including UNILAG, Usmanu Danfodiyo University in Sokoto (UDUS), Ahmadu Bello University in Zaria (ABU), University of Nigeria, Nsukka (UNN), and The Polytechnic Ibadan, Oyo State, have voiced their grievances regarding the increased fares.

    To address the issue and prevent arbitrary fare increases, UNILAG management has specified the amount that can be charged by intra-campus transportation shuttles as well as those operating between the campus and neighboring communities such as Yaba and Akoka.

    Unilag shuttle buses

    According to a statement issued by UNILAG’s Head of Public Relations Unit Adejoke Alaga-Ibraheem, the approved fare for intra-campus shuttles has been increased from N50 to N70, while motorists plying the campus-Yaba and other routes are now permitted to charge N150 instead of the previous N100. The statement also highlighted that food vendors should maintain their pre-fuel price hike prices.

    “These developments are to be in place till the end of June, 2023, when the situation will be reviewed again, and adjustments made if necessary.

    “Management implores all members of the university community and other stakeholders to remain calm and abide by the above decisions,” the statement read.

    As the fuel subsidy removal continues to spark concerns and protests among various stakeholders, the effects on transportation costs and the overall economy remain subjects of intense debate and scrutiny.

    The Nigeria Labour Congress (NLC) has strongly opposed the removal of the subsidy, deeming it a misplaced priority and has threatened to initiate industrial action if the new fuel pump prices are not reverted to their previous levels.

    The union has notified its affiliates of the industrial action scheduled to begin on Wednesday, June 7th, which aims to demand the reversal of the petrol pump price to N185.

    In the same vein, the Nigeria Union of Journalists (NUJ) has pledged its support to the NLC, saying that it will fully participate in the strike.

     

  • Subsidy Removal: Nigerians Groan Over High Cost of Transportation, Commodities

    Subsidy Removal: Nigerians Groan Over High Cost of Transportation, Commodities

    Following President Bola Ahmed Tinubu’s announcement on May 29 regarding the removal of fuel subsidies, the cost of petrol has experienced a notable increase and this surge has directly impacted transportation expenses.

    TheNewsGuru.com (TNG) reports that the subsidy removal policy is part of the government’s efforts to address economic challenges, streamline expenditures, and promote fiscal sustainability.

    However, its immediate impact has been felt in the transportation sector, leading to an increase in costs for both commuters and businesses.

    Public transportation operators, including bus, taxi, and tricycle services, have raised their fares to compensate for the higher fuel costs and commuters, particularly those relying on public transportation, are feeling the pinch of increased fares, leading to reduced disposable income for other essential expenses.

    As increase in transportation costs also affects the prices of goods and services across, commodities such as food, household items, and other essential goods are already witnessing a rise in costs, imposing an additional burden on households, especially those with limited incomes.

    One affected Nigerian Mino Tauri said: “Removing fuel subsidy without fixing the problems is like having a car without wheels, it’s going nowhere. The problem doesn’t go away.”

    Public Analyst Shoba Adebayo, noted that every time there is a proposal to remove fuel subsidy, fuel marketers swiftly respond by shutting down their filling stations, depriving Nigerians of access to the already subsidized fuel they have in stock.

    “This immediate scarcity results in a period of hardship, which we are currently witnessing. Consequently, while the marketers profit from this situation, they simultaneously fuel and provoke the Nigerian people against the federal government due to the difficulties they have created,” he said.

    The recent increase in the pump price of petrol by the Nigeria National Petroleum Company Limited (NNPCL) and other fuel stations from N195 to between N537 – N570 has been met with opposition from the Nigeria Labour Congress (NLC), who consider the new price unacceptable and demand its immediate withdrawal.

    President of the Nigerian Labour Congress Joe Ajaero, expressed dissatisfaction with the lack of consensus reached in the meeting.

    He specifically criticized the Nigerian National Petroleum Corporation Limited for releasing an official statement that revised the petrol pump price at its filling stations across the country, stating that this action had created a challenging situation for the labor unions during the negotiation process.

    “The subsidy provision has been made up to the end of June. And before then, conscious people, labour management, government, should be able to think of what will happen at the end of June. You don’t start it before the time,” Ajaero said.

    A spokesperson for the Federal Government Dele Alake, announced during a press briefing that the discussions would continue at a later date.

    “We are continuing talks at a later date, very very shortly. But the important thing is that talks are ongoing. It’s always better to keep talking with a view to arriving at a very amicable solution that would be in the interest of all Nigerians. That’s the much we can say now,” Alake said.

    The surge in transportation costs contributes to inflationary pressures within the economy, as Small and medium-sized enterprises (SMEs) that heavily rely on transportation for their operations face increased operational expenses.

    Proffering solutions to the situation, legal practitioner Adonye George, advised the government to consider measures to stabilize fuel prices, such as diversifying energy sources, improving refining capabilities, and encouraging investment in alternative energy solutions.

    He added: “Introducing targeted subsidies for public transportation services can help alleviate the burden on commuters and ensure affordable transportation options for the general public.

    “Implementing policies and initiatives to support small businesses affected by increased transportation costs can help them remain competitive and minimize the negative impact on employment.”

    Nigerians expect that the Tinubu-led administration would take proactive steps to address the challenges arising from this policy change, focusing on measures to stabilise fuel prices and provide the necessary support to mitigate the impact on the general public.