Nigerian travelers face 30.54% transport inflation rate as Christmas nears 

This figure, the highest recorded this year, underlines the escalating cost of transportation for individuals and businesses alike.

Transport inflation has been a persistent challenge throughout 2024, consistently outpacing the levels recorded in 2023. In January 2024, the rate stood at 25.92%, a significant increase from 21.02% in January 2023.

After stabilizing mid-year at an average of 25.63% in May and June, the rate surged to 27.21% in September following an uptick in fuel prices. November’s 30.54% marks a year-on-year increase of 3.52 percentage points from 27.02% in November 2023.

The surge in transport costs has been driven by a mix of economic and policy-related factors. Chief among them is the removal of fuel subsidies implemented shortly after President Bola Tinubu assumed office in May 2023.

Also, the devaluation of the naira, from N769 per US dollar in June 2023 to an average of N1,550 per dollar in December 2024, has exacerbated the situation. Imported spare parts, vehicles, and fuel costs have surged, forcing transport operators to pass these costs onto consumers.

Persistent issues, including poor road infrastructure and limited alternatives like rail transport, have compounded inefficiencies and costs in the sector, adding to the burden on Nigerians.

These inflationary pressures mirror the broader economic challenges that have intensified since Tinubu’s inauguration. Transport inflation rose from 23.87% in May 2023 to 30.54% in November 2024, a sharp increase of 6.67 percentage points (27.94%) in just 18 months.

Households face eroding purchasing power due to rising daily expenses, while businesses, particularly small and medium enterprises, struggle with higher logistics costs that drive up the prices of goods and services.

Under Tinubu’s administration, petrol prices have skyrocketed, rising by 505.71% from N175 per liter in May 2023 to N1,060 per liter in October 2024.

Naijaonpoint noted at least five price hikes during this period, including increases in May and June 2023, September 2024, and twice in October 2024.