10% fuel subsidy improve transport system – Tech coy

An indigenous high-tech-powered mobility company, NAIRAXI on Monday said 10 percent of the current N6.4tn spent on fuel subsidy can go a long way to improve or support road transportation in Nigeria.

The Co-Founder/Chief Executive Officer, of NAIRAXI, Kingsley Eze, said this in a statement.

According to him, the need for an integrated and intermodal transport scheme would do more than expected, not only by resolving the crisis that might trail the removal of fuel subsidies but also by creating new opportunities in the country.

Eze said that the NAIRAXI transport system would be capable of servicing everyone, both VIPs, top executives, workers, students, and even last-mile commuters.

“The final planned removal of fuel subsidy by the Federal Government in June 2023 may awaken new hopes for Nigerians and especially the public transport system, as Nigeria’s indigenous tech-powered mobility company NAIRAXI, suggests the adoption of its integrated and intermodal transport scheme powered by smart technology,” he said.

Eze recalled that the Minister of State for Transportation, Prince Ademola Adegoroye, said the Federal Government had already approved the proposed special scheme for mass transit to be driven by transport operators for ease of transportation across the country, especially with the proposed removal of fuel subsidy.

The National Bureau of Statistics had hinted that transportation cost amount the second most expensive cost among households in Nigeria just after Housing costs.

Eze stated that interventions in road transport affect more Nigerians directly and while the government was spending so much to improve the rail system, road transport must also be properly considered.

He also explained that the impact would be impressively commendable in directly supporting Nigerians, especially through partnerships with private transport operators like Nairaxi and others that have distinguished themselves in delivering value services through technologies on the mobile app.

“We all know that revamping the road transport system will have a direct, immediate, and positive impact on Nigerians. I, therefore, advise that if a fraction of N640bn is spent on road transport which is just 10 percent of the N6.4tn spent annually on fuel subsidy, there will be better impact and improvements in the road transport system,” Eze said.

Source: The Punch

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