Gradually, the impact of the surging inflation on the economy is sinking in following the decision of All Private Transport Company Owners (APTCON) ti increase fares by 25 per cent to reflect the rising cost of operation.
This decision announced Tuesday via a memo titled, Notification of price increase, becomes effective from 25th August.
The increase will spike up the price of every item such as foods, commodities, household goods, and others as road transportation is the most popular and accessible option, moving about 96 percent. of the over 200 million Nigerian population from one point to another.
It is also only the option for moving goods from seaports and manufacturing firms which the majority are located in the South to up North and the hinterlands.
Christian Edeh, a spare part seller in Abuja said the fare rise will again cause him to increase the price of his goods.
“I will have to increase the price of my goods and it is the customers that will bear the brunt”, he said.
Railway transportation is just revving up and the terrorist attacks on the Abuja-Kaduna route have created fears, driving passengers away from traveling by rail.
Airline operators have frequently threatened to shut down operations over the increasing cost of operations
The rise which the board of (APTCON) said is to protect the operators from running at a loss is contained in the memo that read: ‘’This is to formally advise all private interstate passenger transport company owners of Nigeria to increase bus fares across all interstate routes by 25 per cent effective 25th August 2022.
‘’Sequel to the prevailing harsh economic situation as well as the recently announced increase in petrol pump price across the country, the board of APTCON, in collaboration with its member companies, have deliberated and have unanimously agreed that a marginal increase in interstate transportation fares is inevitable.’’
Sola Atkinson, who operates small poultry in Oyo town said he will have to adjust the prices of his poultry items that he always moves to Ibadan or Ogbomosho to sell.
“This is worrisome because Nigerians are complaining already about the state of the economy. This will worsen their plights”, Atkinson who is pressured by the repayment of loans lamented.
APTCON while justifying the increase, said: ‘’ Nigeria is facing a downturn that has greatly affected all sectors of the economy especially transportation. In response to the high cost of operations, while many trade associations have increased charges as a means of survival, some others, like the elitist airlines, have received post-pandemic intervention funds from the government.
‘’Unfortunately, our industry, which moves 96 per cent of Nigerians, is not exempt from the crisis as our operating costs have risen significantly without any form of government support or incentive.’’
Operators in the sub-sector are challenged by incessant fuel price rise which currently sits at between N165 and N179, representing 7 per cent increase, Diesel has shot up from an average of N250 a year ago to over N800 today or 220 per cent increase, while the inflation rate which currently peaked at 18.6 per cent, a 65-months high in June 2022, significantly increase the cost of operations by at least 50 percent.
The forex crisis which has seen the Naira crashing to N670 against the dollar has also increased the prices of spare parts, pushing vehicle maintenance to as high as 80 percent, while acquiring a new vehicle is increasingly becoming difficult.
The operators said: ‘’These challenges have taken a significant toll on the revenue of private transport company owners across Nigeria as most transporters are either operating at a loss or test. While some have had to shut down operations completely, many others have expressed their inability to pay salaries much less run profitably.
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