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FG’s 50% Transport Fare Subsidy Delayed, Likely To Start On Tuesday

Published

4 hours ago

Dec 23, 2024.

The Federal Government’s planned 50% reduction in interstate transport fares, initially scheduled to commence on December 20, 2024, is now expected to begin on December 24, 2024.

The initiative aims to alleviate high transport costs for Nigerians traveling during the festive season.

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EKO HOT BLOG reports that last Thursday, the Federal Ministry of Transportation announced an agreement with road transport stakeholders to provide financial relief for travelers. The arrangement includes covering half of the transport fare for passengers and offering free rail transportation starting December 20, 2024.

Olujimi Oyetomi, Director of Press and Public Relations at the Ministry, described the program as part of President Bola Tinubu’s broader effort to deliver transportation palliatives during the Christmas and New Year celebrations.

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, signed the agreement. Passengers departing from Abuja and Lagos (Oshodi) to various destinations across Nigeria will benefit from the subsidy.

However, the road transport scheme faced delays due to unresolved documentation issues. A senior transportation ministry official revealed that the rail service, which aims to transport 340,000 Nigerians during the festivities, is operational, but the road initiative remains stalled.

The official added that the transportation minister is set to unveil the scheme at Eagle Square, Abuja, and efforts are ongoing to address funding gaps.

The Chief Executive Officer of God is Good Motors, Enahoro Ekhae, confirmed the Memorandum of Understanding (MoU) but noted that implementation has not started, pending government action. Sources within the finance ministry attributed the delay to funding challenges, with transport unions awaiting payments promised under the scheme.

While rail services proceed under Federal Government management, the road scheme depends on private transport unions due to the government’s lack of buses.

The unions will receive payments covering 50% of agreed fares for specific routes. Discussions between the transport and finance ministries are ongoing, with stakeholders optimistic about resolving the bottleneck soon.