Fuel scarcity: Uber, Bolt raise fares
In the midst of Nigeria’s fuel crisis, Uber and Bolt, the two most popular ride-hailing companies, raised their fares. Although it’s not clear if petrol scarcity is behind the price increase, other modes of transportation in Lagos and other major cities have also seen an increase in fares, and operators struggle to break even.
Ride-hail companies in Lagos and Abuja cite a prolonged fuel shortage as the driving force behind their growth.
Drivers claim that the scarcity has led to fewer cars being on the road, causing a price hike in the last three weeks that has risen by double digits.
Reports states that the price of a ride from Lekki to Ikorodu in Lagos, which was between N2,500 and N3,000 as of Sunday, February 27, 2021, has risen to as much as N6,000. With transportation prices on the rise, Nigerians are facing eroding purchasing power due to a decreasing disposable income .
Dent in Purchasing Power
Drivers of the ride-hail apps now require passengers to pay in cash to enable them to meet immediate needs.
NBS: January transportation fares soar 283%
Nigeria Bureau of Statistics (NBS) reports that the removal of fuel subsidies has resulted in an increase in transport costs. Nigerians spent 283 per cent more on transportation in January as a result of the rumoured removal of petrol subsidies.
In December 2021, NBS data shows the average cost of bus travel rose from N122.83 in January 2017 to N470.83. It means that the cost of transportation within cities through bus has risen by 283%, or B384 in four years, according to data from NBS’s Transport Watch reports.