Fuel Subsidy: Firm Moves To Digitize Public Transport To Mitigate Adverse Effects

Fuel Subsidy: Firm Moves To Digitize Public Transport To Mitigate Adverse Effects

  • A Nigerian company has perfected plans to digitize public transport in the country to ease the effect of subsidy removal
  • According to the company, the planned removal of subsidy will heap so much burden on commuters
  • The planned digitization of public transport in the country, the company said, would ease traffic in cities across Nigeria

Ahead of the removal of fuel subsidy come June 2023, the Indigenous leading Tech-powered mobility Company NAIRAXI says digitizing Nigeria's public transportation systems will help to mitigate future effects.

The company Chief Executive Officer, Kingsley Eze, disclosed this in a statement signed on Wednesday and made available to journalists.

Public transport, Fuel subsidy, Digitization
Co-founders of Nairaxi, Eze and Elizabeth Credit: Nairaexi
Source: UGC

Collapse of public transportation gave rise to innovation

The CEO noted that the vision is to consequently improve accessibility to mobility, explore alternative energies, expand proprietary mobile technology and ensure a contactless transit card and auto fare collection technology.

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Eze also disclosed that the collapse and inefficiency of our urban transit have led to what is known as "the one-man per car syndrome". Too many vehicles on the road lead to traffic congestion, gridlock and poor air quality resulting from pollution.

He noted that now is the best time to explore programmes and plans to advance the country's transport sector.

He said:

"Federal employees and economically challenged Nigerians may receive transit passes in amounts approximately equal to their commuting costs but not to exceed the maximum level allowed by law. It is accessed via a seamless transportation payment platform spanning public and private systems."

He stated that the program objectives of the firm Transit Subsidy Program for private and mass mobility are to encourage Nigerians to use public transportation for commuting to and from work and other productive engagements.

According to the Co-Founder of NAIRAXI, Elizabeth Omale, who spoke with Legit.ng, increased use and nationwide adoption of the company's Digital Transit Subsidy Program will improve air quality, equity, and accessibility, reduce greenhouse gas emissions, reduce traffic congestion, and conserve energy by reducing the number of single occupancy vehicles on the road. A win for everyone.

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Subsidy removal, beginning of new Nigeria

She described the proposed subsidy removal as the beginning of a new Nigeria. She says by using a little percentage to subsidize transport services, there will be better national growth, development and impact on the lives of the poor. She encouraged all citizens to embrace the Scheme offered by the firm to take back the country by cooperatively taking out subsidies.

Despite reiterating that making public transportation attractive to commuters requires the digitalization of the industry, Eze further emphasized the need for technology to scale up the reach and expand services.

"Technology can cut through a lot of drawbacks in the public transport like long wait time, inefficient scheduling and payment processes."
"We should be pushing for an intermodal approach in the sense that, shared taxis, buses, rail, ferries and last-mile transit options like "Keke" must be well harnessed," Eze said

Since 2020, residents of Luxembourg have been able to freely commute by trains and buses throughout the country without buying tickets. According to the government, it aims to reduce car traffic. The measure is part of a wider plan to reduce congestion.

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In a report by Bloomberg, free transit programs have emerged in all kinds of cities and countries over the years as a means of addressing rising energy costs or traffic. Rome experimented with free buses in 1971; Austin, Texas, tried it in 1989 and 1990; Kansas City's bus and streetcar systems have been fare-less since 2020; and Boston Mayor Michelle Wu has vowed to "Free the T" throughout the Massachusetts city, starting with a trio of fare-free bus routes.

Countries with digitized public transport transport system

According to the report, one of the longest-running efforts has been in Estonia's capital, Tallinn, which has had free public transit for residents since 2013. Estonians also pay no fares for rural bus journeys. Ticket-less transit has also recently arrived in the cities of Dunkirk, France, and the Czech Republic's Frýdek-Místek.

Meanwhile, The company's Automated Fare Collection System (AFCS) Pilot Production Testing (PPT) allows the convenient use of contactless smart cards as cashless payment instruments in public transport modes, currently implemented in the Tinubu/Shettima Nairaxi Transit Card Initiative, which NAIRAXI introduces.

Many are registered via the portal, as commuters across major cities in Nigeria are beneficiaries of the free digitized transportation initiative.

Namibia made top 13 African countries with best roads, Nigeria did not

Recall that Legit.ng reported that African countries with the best roads according to 2019 WEF Quality of Road Infrastructure has been published by Africa Facts Zone.

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Namibia led the top 13 countries on the continent that can boast of good roads. Egypt, a country that has been making recent lists for other social amenities, took the second position.

Others in the top five position on the list are Rwanda, Morocco, and Mauritius. Countries like Kenya, Senegal, South Africa, Algeria, and Tanzania also made the cut.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng