By Abiodun Abdullahi
In a recent Small Business Insights (SBI) market research, our correspondent hit the streets to gauge public opinion on the newly implemented 25% transportation discount by the Lagos State Government. This move is aimed at shedding light on the potential impact of reduced transportation costs on the prices of goods and commodities.
Alhaji Sheu, one of those interviewed, emphasized that the discounted transport fares should not just facilitate easier commuting but should also play a pivotal role in curbing the soaring cost of products. He pointed out that transportation costs are a major factor affecting market prices.
Another interviewee, Peace, a wholesaler, lamented how high transportation expenses have chipped away at her profit margins, leaving her with meager earnings. She expressed hope that effective enforcement and widespread acceptance of the transport fare discount would translate into lower market prices and increased customer traffic.
Many of the people we spoke to shared a common sentiment – if this discount is embraced on a large scale, it could alleviate the relentless price hikes witnessed in the Lagos market.
The Lagos State Government, operating through the Lagos Metropolitan Area Transport Authority (LAMATA), has issued a directive to enforce a 25% reduction in transportation fares across the Lagos State Public Transport System. This directive was conveyed through a public notice released by LAMATA on its official social media account, dated Monday, November 6, 2023.
According to LAMATA’s notice, the 25% fare reduction took effect on Tuesday, November 7, 2023, encompassing LAMATA-controlled bus and rail transport services.
This development follows a recent decision by the Lagos State Government to conclude the 50% transport fare discount initiated in response to Governor Babajide Sanwo-Olu’s directive on August 2, 2023, thereby reinstating transportation fares to their pre-discount rates.
LAMATA disclosed that Governor Sanwo-Olu’s decision to extend a 25% passenger fare reduction was in response to public appeals for the reinstatement of a 50% discount for LAMATA-controlled bus and rail transport.
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In an official statement, LAMATA clarified, “In response to calls for the reinstatement of the 50% fare reduction for regulated bus and rail transport, Governor Babajide Sanwo-Olu has directed the implementation of a 25% discount effective from Tuesday, November 7, 2023. Governor Sanwo-Olu had initially announced a 50% fare discount on regulated transport bus and rail transport on August 2, 2023, which concluded on Sunday. Following appeals to the Governor, he has extended the passenger fare reduction by 25% for regulated bus and rail transport services until a further review announcement.”
Within the three-month period of the initial discount, the price of diesel surged from N867 in August to N1,300 in November 2023, marking an approximate 50% increase. This sharp rise in fuel costs played a pivotal role in the temporary cessation of the fare discount in August.
With this new development, residents and businesses in Lagos State are keeping a close eye on the potential ripple effect this transportation discount might have on the cost of living and doing business in the bustling metropolis. As time unfolds, it will become clearer whether this discount leads to a much-needed relief for consumers and businesses, or if other factors come into play.
Source: Small Business Insights (SBI)
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