VAM News Update

“The 50% rebate in transport fare in the regulated transport system in Lagos ends on Sunday… The public is hereby informed that from Monday, 6th November 2023, transport fare will return to the pre-2nd August 2023 rate.” – LAMATA

When the Lagos State government introduced the 50 percent rebate for commuters using the state’s mass transit, Babajide Sanwo Olu, the state governor, said it was to cushion the effect of the subsidy removal on Lagos residents.

President Bola Ahmed Tinubu had two months earlier announced that “subsidy is gone”, driving the market to immediately reflect the change. As a result, the pump price across the country were reviewed and in Lagos State, it jumped from N185 to N488.

This created a ripple effect, part of which was an increase in the prices of goods and services. Transportation doubled and in some cases tripled, so did foodstuff and other utility products. To abate the hardship, Sanwo Olu announced that from August 2, transportation prices would be slashed by half and that the government would share food palliatives to residents.

Four months after, the transportation subsidy has now come to an end. The Lagos Metropolitan Area Transport Authority (LAMATA), on Saturday, announced that the transportation fare rebate would cease starting on Monday, November 6.

ARE THINGS MUCH DIFFERENT THAN THEY WERE BEFORE THE PALLIATIVE MEASURES?

Not quite. Lagos residents, in fact, argue that they are much worse.

Pump price has increased since the implementation of the 50 percent transport fare slash. Fuel stations across Lagos State currently sell a litre of fuel between N568 and N600 from the previous N488.

The cost of goods continue to increase at par with inflation, and residents have yet to witness any sustainable policy or infrastructure to protect them from the rising cost of things.

In response to LAMATA’s announcement on X, one Oyetola O.R. wrote: “This is insensitive to the current situation going on in the country. The only way the majority actually benefit from the government: palliatives. Kindly reconsider this decision. It is anti-people and is very consequential.”

Another user, Olatunbosunkannmi, also said that “Lagosians are now on their own. Government is done with them. Wetin remain now na blood of Jesus and Insha Allah [sic]. Government is obviously not for the people.”

“I don’t think this should come out at this time. Nigerians are still suffering the fuel matter. Lagos State Government eased the tension a bit, but removing the rebate is not going to do any good, rather I see more harm in advance,” Ebunola Shadrach posted

Eze Andy, another X user, also wrote in response to LAMATA saying, “What do we expect? The Supreme Court has given you people the go-ahead to finish Nigerians. How can you remove rebate when petrol still sells at N650 and diesel sells at N1,300 per litre, and you are happy to announce to us that rebate has ended.”