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‘10% of N6.4tr fuel subsidy can revolutionise transport system’

By Sodiq Omolaoye, Abuja
24 August 2022   |   4:03 am
Only 10 percent of the current N6.4trillion spent on fuel subsidy could go a long way to improve Nigeria's road transport systems, Founder, NAIRAXI, a indigenous tech-powered mobility company, Kingsley Eze has said.

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Only 10 percent of the current N6.4trillion spent on fuel subsidy could go a long way to improve Nigeria’s road transport systems, Founder, NAIRAXI, a indigenous tech-powered mobility company, Kingsley Eze has said.

The tech expert who stated this at an interactive session with journalists in Abuja, maintained 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 by creating new opportunities in the country.

He added that the NAIRAXI Transport system will 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 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.

He said transportation costs, according to the National Bureau of Statistics (NBS), amount to the second most expensive cost among households in Nigeria just after housing costs.

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

According to him, 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 advise that if a fraction of 640billion naira is spent on road transport which is just 10percent of the 6.4trillion naira spent annually on fuel subsidy, there will be better impact and improvements in the road transport system.”

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

While reviewing the progress of Nairaxi in the last four years, Co-founder and CFO, Elizabeth Omale noted that the company has recorded thousands of deliveries via the seamless smart mobile application, which currently has over a myriad of merchants already signed-up.

She assured that the company was ready to assist the Federal Government to ameliorate the harsh economic conditions that experts have projected to be a direct consequence of fuel subsidy removal.