10 percent of fuel subsidy can improve transport system – Coy




Nigeria’s indigenous tech-powered mobility company NAIRAXI has said that 10 percent of the current N6.4 trillion spent on fuel subsidy could go a long way to improve or support road transport systems in Nigeria.

Co-founder/CEO of NAIRAXI Kingsley Eze, made this disclosure at an interactive session with journalists in Abuja on Monday.

He said  that the need for an integrated and Intermodal Transport Scheme will do more than expected, not only by resolving the crisis  that might trail the removal of fuel subsidy but also by creating new opportunities in the country.

He added that the NAIRAXI Transport system will 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 her Integrated and Intermodal Transport Scheme powered by smart technology.

“Recall that the Minister of State for Transportation, Prince Ademola Adegoroye, said President Muhammadu Buhari has 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.

According to National Bureau of Statistics, transportation cost amount the second most expensive cost among households in Nigeria just after housing cost.

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

He further explained that the impact will 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 advice that if a fraction of 640billion naira is spent on road transport which is just 10percent of the 6.4trillion naira spent annually on fuel subsidy, there will be better impact and improvements in road transport system.”

He further explained that the N5,000 proposed by the Minister of Finance, Mrs Zainab Ahmed for transport allowances will work better if there is a verifiable and transparent structure like the “pre-loaded transit cards given out to beneficiaries and service fulfillment by NAIRAXI.

 However he cited instance on the Abuja Mass Transit Scheme which may have failed as a result of bad management systems.

He therefore encouraged federal government and the Federal Ministry of Transportation to engage private Transport operators with fundamental and developmental vision, having the required structures, expertise and technology to drive the implementation of President Buhari’s interest on special scheme for mass transit to be driven by transport operators for ease of transportation across the country.

 Although he commended the administration of President Muhammadu Buhari and his cabinet for the monumental strides they have attained amidst the bothering national challenges.

While reviewing the progress of Nairaxi in the last 4years, Co-founder and CFO, Elizabeth Omale noted that the Indigenous tech-powered mobility company has recorded thousands of deliveries via the seamless smart mobile application which currently has over a myriad of merchants already signed-up. Nairaxi has demonstrated capacity through tech related innovations, direct-impact initiatives to support cummuters and exceptional management system that describes transparency and accountability.

Already, the Nairaxi Mobile application is currently serving thousands of e-commerce request and transactions daily, with a vibrant infrastructure for deliveries whereby customer’s request are met in real time and without delays. Hundreds of thousands of vehicles are currently using the smart and affordable Nairaxi Mobile application in the city of Abuja, and with several motobikes readily available to deliver on-demand services anywhere and at any time in the Federal capital Territory, Nairaxi is sure ready to assist the Federal Government to ameliorate the harsh economic conditions that experts have projected to be a direct consequence of the removal.

Eze however, reiterated that the vision is to make seamless mobility accessible to everyone. He says “Nigeria must seek to close it’s leaking pockets and harness lucrative revenue generating schemes like NAIRAXI for the good of every citizen.”

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