• Sunday, June 16, 2024
businessday logo


Mass transit tech solution seen cushioning impact of subsidy removal

Moove moves to subsidise fuel costs for drivers

The digitisation of Nigeria’s public transit system is key to cushioning the impact of the fuel price increase cost due to the removal of subsidy, Kingsley Eze, Co-founder and CEO of a leading tech mobility company Nairaxi, has said.

The expert noted that apart from food, Nigerians spend a bulk of their money on transportation just to move from one place to another.

Eze, who made the call while speaking on fuel subsidy removal and the role of digital mobility ok Arise Tv, said though Nigerians see public transport as a service meant for the poor, on the contrary, if utilized properly, can help solve the challenges of subsidy.

“We must adapt our transit system to face the recent market realities because subsidy removal has created a demand which is what the public transit sector has been lacking over time. With the demand, we need a great supply of tech mobility operators and an efficient regulatory system by the government”, he said.

Speaking on how government can be resourceful, Eze explained that fortune is made during a crisis. He gave instance to the world war and the myriads of developments it birthed.

While stressing that public transportation is not meant to be profitable but sustainable, he pointed out the need to take public transport seriously by giving public transit agencies, state and federal government access to tools that can make public transportation sustainable.

He advised the federal government on the need to declare a state of emergency on public transportation. He also drew reference from the Kano Metropolitan Transport system which is up and running with Nairaxi.

Read also: FG urged to review national policy on tourism to tap sector’s potentials

He further emphasised the benefits of tech-driven mass mobility in Abuja. He stated that the initiative will decongest the road and be a solution to the mammoth issues surrounding subsidy removal, and also provides an outlet for citizens to access affordable transportation from point A to point B.

According to him, contactless payment would help in making sure that the mass transit system is well utilized, monitored, secured and trackable. “If you go to an advanced society, you can see how the society works. You can actually have a ride to your office, a ride to your workplace and rides to your home via an affordable and comfortable public transit system.

“With Nairaxi, you don’t have to drive to work, your car is parked almost 90% of the time. With the use of technology, mass transit services could be scaled up, therefore making transit services efficient and accessible by all”, he said.

He informed that Nairaxi has been engaging the government at several levels, especially with engagements with the Ministry of Transport and other key stakeholders in the transport system.

According to him, Nairaxi will help ensure that physical asset is well utilized. “We have technology-powered bus services; an affordable and efficient mass transit system that is currently transporting people en masse”, he said.

Speaking on his contribution to the transport sector amidst the recent fuel subsidy removal and fuel price increase, Eze made reference to the free mobility services which Nairaxi is providing to Commuters within the nation’s capital.

“We provide free rides from the central business district to three major satellite towns in Abuja namely, Nyanya, Lugbe and Kubwa”, he said.

Eze explained that the process has helped to get Abuja residents acquainted with the Nairaxi tap-to-pay technology available on the free BRT transit buses.

Eze has been on the front burner in the area of introducing proactive measures to digitise transportation, thereby making it convenient and accessible to Nigerians, especially in the face of fuel subsidy removal. He has championed this course in the last 3 years to lessen the eventual challenges and hardship of the removal of subsidy from petrol.