For residents of Abuja and the entire Federal Capital Territory (FCT), daily transportation expenses—whether commuting to work, school, or the market—are a significant concern, often matching or even surpassing food as a major household cost. Three years after the removal of fuel subsidies and the implementation of various economic interventions, transportation costs in Nigeria’s Capital Territory remain stubbornly high. Many citizens report seeing little relief, as the weight of these expenses continues to strain household budgets and impede financial stability.
From the drivers’ perspective, the reality is more complex than fuel alone. Speaking at a loading point in Kubwa, Felix Azuka, a taxi driver, explained that determining transport fare goes beyond the fuel pump price.
“Nigerians think that transport fare should immediately come down once the fuel price is reduced by a small amount. It doesn’t work that way because fuel can increase again in a few days, and we still have other expenses,” he said. According to him, fares are informally set based on fuel costs, expected traffic conditions, daily operating expenses, and the number of trips possible within a working day.
From the civil servant’s perspective, the burden is direct and daily. A civil servant resident in Nyanya, who requested anonymity, said that transportation now consumes a larger share of his monthly income than before the subsidy was removed.
“Before the subsidy was removed, transportation was manageable. You could budget for movement and still have something left at the end of the month. Now, transport is one of the first things you think about when salary enters,” he said.
He disclosed that despite government publicity around CNG transportation initiatives, he has never benefited directly from the programme. “I have not used the CNG buses before. Maybe some people are benefiting, but I can’t say I have seen any direct impact on my own movement to work. Every day you spend more and just accept it because there is no option.”
When the Federal Government removed fuel subsidy in May 2023, it argued that the decision was necessary to save public funds and redirect resources to critical sectors of the economy. However, the policy immediately triggered a sharp increase in petrol prices, setting off a chain reaction that affected virtually every aspect of daily life. Among the hardest hit was the transportation sector.
Commercial transport operators across the FCT responded by increasing fares, citing soaring fuel costs and rising operational expenses. Three years later, despite periodic reductions in petrol prices and various government interventions to ease the burden on citizens, transport fares remain stubbornly high. This has left many commuters asking a simple question: If fuel prices can go down, why don’t transport fares follow the same trend?
At many filling stations, petrol currently sells between N1,300 and N1,390 per litre, with operators attributing the continued high transport charges to unstable pricing, operational expenses, and uncertainty about future market movements. The wider geopolitical tension involving the United States, Iran and Israel has also added pressure to global oil markets, creating concerns about possible future increases.
The federal government has rolled out several measures to cushion the effects of subsidy removal. These include promoting Compressed Natural Gas (CNG) as an alternative fuel source, supporting local refining, and selling crude oil to domestic refineries in naira to reduce pressure on foreign exchange and lower the cost of petroleum products.
Government officials have also pointed to the rollout of CNG buses and vehicle conversion programmes for public and commercial transport, expansion of local refining capacity to reduce dependence on imported fuel, direct crude supply arrangements to domestic refineries in local currency to ease foreign exchange pressure, and reforms allowing more direct market participation in petroleum supply as part of broader efforts to stabilise prices and improve fuel availability.
Authorities maintain that these interventions are intended to lower logistics costs in the long run and create a more sustainable energy market. While these interventions have been welcomed in some quarters, many Abuja residents say they have yet to feel any significant relief in their daily transportation expenses. Many commuters and operators interviewed said the expected reduction in daily transport expenses has yet to become visible in their day-to-day movement across the city.
A closer examination of the city’s transport system reveals a more complex reality. For many commercial drivers, fuel is only one component of their daily expenses. In addition to buying petrol, drivers must contend with vehicle maintenance costs and rising prices for spare parts, engine oil, tyres, and batteries, all of which have increased significantly in recent years. Vehicles that operate from morning till night need regular servicing, and despite relatively smoother roads in Abuja compared to other parts of the country, long hours of operation accelerate wear and tear.
Many drivers also do not own the vehicles they operate. Instead, they work under arrangements that require them to make daily or weekly remittances to vehicle owners before taking home any profit. These remittances have reportedly increased alongside the cost of living and the rising value of vehicles. Some owners collect between N80,000 and N100,000 weekly, depending on agreement and vehicle type.
Beyond this, transport operators pay various levies and loading fees, while some complain of unofficial payments demanded at different points along their routes. Drivers obtain daily operational tickets and maintain annual subscriptions, depending on their association and route arrangements.
One operator noted that regular renewal of documents with the National Union of Road Transport Workers (NURTW) had become more important amid government efforts to address security concerns and curb incidences of criminal activity in commercial transportation. Collectively, these expenses contribute to what drivers describe as an increasingly difficult operating environment. As a result, transport operators argue that reducing fares solely because petrol prices have temporarily dropped may not be economically sustainable. They insist that fares are determined not only by fuel costs but by the overall cost of running the business.
Commuters, however, see things differently. Many residents argue that transport fares rise almost immediately whenever petrol prices increase yet remain unchanged when fuel prices decline. They contend that the burden of economic adjustments is often transferred entirely to passengers, leaving ordinary Nigerians to shoulder the consequences. For commuters who move into the city centre daily, the impact has become increasingly difficult to ignore.
Sabo Renno, a businessman at Ushafa Ultra-Modern Market and someone who works around the Federal Secretariat area, described the increase in transport costs as one of the most difficult adjustments workers have had to make in recent years. “Dutse to Secretariat now can cost around N1,000 to N1,200, depending on the period and availability of vehicles. Before subsidy removal, that route was around N500 in many cases. Salaries did not double, but transport almost did,” he said.
Commercial drivers continue to stress that earnings are not what passengers assume. A driver at Kubwa explained that most drivers purchase between 25 and 30 litres of petrol daily. “At N1,360 per litre, if you buy around 25 to 30 litres, you are spending roughly N35,000 to N40,000 every day just to start work. Then calculate everything else.” The driver added that, contrary to public assumptions, earnings are not entirely retained by operators. “After fuel, small repairs, settlement and other expenses, your profit may just be between N5,000 and N10,000 if business is fair.”
Another commercial driver operating between Mararaba and the city centre said most transport operators work extended hours to remain profitable. “We leave the house around 6am, and some days close around 8pm or later. It is not because business is booming, it is because expenses are high and you have to stay out longer.” He further explained that many drivers do not own the vehicles they operate.
A ride-hailing operator, Linus Sunday, stationed around the Lugbe airport axis, said many drivers deliberately position themselves for airport pickups because city operations no longer provide sufficient returns.
“With airport pickups, one trip may equal several local trips. That is why many drivers stay around that area.” Asked whether government interventions such as CNG conversion had reduced operating pressure, he said uptake remains uneven. “Some people have switched, but many drivers are still waiting because conversion, availability and logistics remain issues.”
Another driver operating on the Gwarinpa–Central Business District route listed fuel, daily tickets, vehicle servicing, and remittances as expenses, keeping transport prices elevated. “People talk only about fuel, but there are many things involved. Vehicles that move from morning till night need regular servicing. Tyres, engine work and maintenance have all increased.”
The situation has sparked concerns about the effectiveness of existing interventions and whether the benefits are reaching the intended beneficiaries. Experts say the answer lies in understanding the full cost structure of commercial transportation. They argue that meaningful relief for commuters may require more than lower petrol prices. Measures such as affordable vehicle financing, expanded mass transit systems, improved access to CNG infrastructure, stricter regulation of levies, and better road transport policies may be necessary to achieve lasting reductions in fares.
From the union perspective, Sadiq Muthalib, a worker of the National Union of Road Transport Workers at the Utako district said operators are also responsible for daily route-related obligations and argued that transport fares do not automatically respond to small fuel reductions because operators plan against uncertainty. “When fuel increases, everybody sees it immediately. But when there is a small reduction, drivers are careful because nobody knows if the next week will bring another increase.”
The official maintained that government interventions may eventually stabilise the sector but acknowledged that most operators and commuters still do not feel sufficient relief. The situation reflects what economists call downward price rigidity, in which prices respond quickly to cost increases but adjust more slowly to cost declines.
As the FCT continues to grow and transportation remains essential to economic activity, the debate over transport costs is unlikely to disappear anytime soon. The key question remains: Have government interventions genuinely reduced transportation costs, or are structural challenges within the sector preventing those benefits from reaching the average commuter? The answer will not only determine the future of public transportation in Abuja but also reveal whether the promises made after subsidy removal are translating into tangible improvements in the lives of ordinary Nigerians.
For commuters and operators across Abuja, the consensus appears similar: while interventions may have prevented a worse outcome, the expected reduction in daily transport burden has yet to become visible in everyday movement across the city.
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