As Christmas approaches, Nigerians are grappling with a record-high transport inflation rate of 30.54 percent in November 2024, according to the Consumer Price Index report by the National Bureau of Statistics.

This figure, the highest recorded this year, highlights the escalating cost of mobility for individuals and businesses alike.

Throughout 2024, transport inflation remained a pressing issue, consistently surpassing levels recorded in 2023.

In January 2024, the transport inflation rate stood at 25.92 percent, a significant rise from 21.02 percent in January 2023.

The rate stabilised somewhat during mid-year, averaging 25.63 percent in May and June, before accelerating to 27.21 percent in September, when there was an increase in fuel prices.

It reached a new peak in November, marking a year-on-year increase of 3.52 percentage points compared to 27.02 percent in November 2023.

The surge in transport costs has been driven by a combination of economic and policy-related factors.

Chief among them is the removal of fuel subsidies, implemented shortly after President Bola Tinubu assumed office in May 2023.

This policy, while aimed at stabilising public finances and spurring economic growth, led to a sharp rise in petrol and diesel prices, which are critical inputs for road and public transport.

However, there have been controversies around the removal of fuel subsidies.

Earlier reports had it that the Nigerian National Petroleum Company Limited (NNPCL) requested an additional subsidy refund of N1.19tn for July 2024, citing exchange rate differentials on Premium Motor Spirit importation and joint venture taxes.

The report revealed that exchange rate differentials stood at N4.56tn as of June 2024 (due to under-recovery on petrol imports between August 2023 and June 2024), but this figure increased to N5.31tn by July 2024.

The NNPCL attributed the rise to fluctuations in foreign exchange rates and unresolved subsidy payments from previous months.

The total figure adds to concerns over the fiscal impact of subsidy payments on the Federation Account.

Exchange rate fluctuations and the rising cost of importing PMS have continued to strain government revenues, raising questions about the sustainability of the partial subsidy framework.

The naira’s depreciation has further compounded the situation, as the cost of imported spare parts and vehicles has risen sharply, forcing transport operators to pass on these expenses to consumers.

Seasonal factors have also played a role, with the festive period typically driving increased demand for travel.

Poor road infrastructure and limited alternatives, such as rail transport, continue to add inefficiencies and costs to the transportation sector, further inflating prices.

This year’s inflationary trends reflect broader economic challenges that have intensified since Tinubu’s inauguration.

Amidst the increasing cost burden on the government for petrol under-recovery, and despite promising to bring down the price of petrol during his campaign, President Bola Tinubu increased petrol price by about 505.71 percent, from N175 in May 2023 to N1,060 in October 2024, inflicting more pain on the already impoverished Nigerians.

Observation shows that the price of petrol was increased at least five times under Tinubu, with an increase in May 2023, another in June 2023, a further increase in September 2024, and two more in October 2024.

When Tinubu took office in May 2023, transport inflation stood at 23.87 percent, according to data from the NBS.

By November 2024, it had escalated to 30.54 percent, marking a significant rise of 6.67 percentage points or 27.94 percent in 18 months.

There has also been a persistent increase in the inflation rate almost throughout Tinubu’s presidency.

In May 2023, Nigeria’s headline inflation rate stood at 22.41 percent, according to the NBS.

By November 2024, it had escalated to 34.60 percent, the highest level in nearly three decades, marking an increase of over 12 percentage points in 18 months.

The naira’s devaluation, from N769 per dollar in June 2023 to an average of N1,550 per dollar in December 2024, has significantly raised the cost of imported goods and services.

The Central Bank of Nigeria responded with aggressive monetary tightening, raising interest rates by 875 basis points in 2024.

Despite these efforts, the rising cost of living continues to strain households and businesses across the country.

Commuters face daily expenses that erode their purchasing power, while businesses, particularly small and medium enterprises, are grappling with increased logistics costs that inevitably translate to higher prices for goods and services.

Amid the rising cost of fuel and transportation, the NNPCL reduced its ex-depot price of Premium Motor Spirit, commonly referred to as petrol, to N899 per litre.

This decision, coming days after the Dangote Refinery reduced its price to N899, was confirmed by the Petroleum Products Retail Outlets Owners Association of Nigeria.

The new price indicates a reduction of N141, or 13.56 percent, from N1,040 per litre sold to customers living in the Federal Capital Territory.

PETROAN’s National Public Relations Officer, Dr Joseph Obele, noted that the price reduction by the national oil firm was a response to the competitive impact of deregulation, which had led to increased competition in the downstream sector.

He expressed optimism that PMS prices would drop further before the end of January 2025, given the global decline in crude oil prices and the naira’s recent gain against the dollar.

Also, the National President of PETROAN, Billy Harry, said the price reduction would relieve motorists and Nigerians during the holiday season.

To ease transportation costs during the Christmas and New Year celebrations, Tinubu approved free train rides nationwide from December 20, 2024, to January 5, 2025.

The Federal Government also announced a 50 percent slash in interstate transport fares for the Yuletide season to reduce travel expenses for Nigerians travelling to celebrate Christmas and New Year.

An MOU was signed between the Federal Government and key transport stakeholders, including the National Union of Road Transport Workers, the Road Transport Employers Association of Nigeria, the Association of Luxurious Bus Owners of Nigeria and God is Good Motors.

Under the arrangement, passengers departing from Abuja and Lagos (Oshodi) to various destinations across the country will pay only half the usual fare.

Jimoh Abdulquadri, a resident of Ilorin, Kwara state capital, who was arrested and detained, has reportedly died in police custody.

Abdulquadri was reportedly arrested on Friday at his residence for allegedly owing a friend N220,000.

On Saturday, his family members were informed that he had died in police custody.

In a viral video taken at the deceased’s house, family members could be seen crying and mourning his death.

In the video, Aishat Biola, the older sister of Abdulquadri, narrated how his brother was deceived from the house and whisked away by some police officers.

“My younger brother is the one who was killed. We were all here making jokes when they came to pick him up,” she said.

“They sent people to deceive him away from here. Those who came to carry him away were on the road waiting.

“Police React”

In a statement on Sunday, Adetoun Ejire-Adeyemi, the police spokesperson in Kwara, said the deceased was “invited” over “an alleged case of obtaining money by false pretence to the sum of N220,000”.

Ejire-Adeyemi said a “discreet investigation” has commenced to ascertain the cause of the death.

“The Kwara State Police Command is aware of an unfortunate incident that led to the tragic loss of one Mr. Jimoh Abdulquadri, which occurred on 20th Dec, 2024,” the statement reads.

“The deceased was invited on an alleged case of obtaining money by false pretense to the sum of 220,000 thousand Naira.

“Discreet investigations into this incident have commenced to ascertain the cause.

“Further developments on the outcome will be communicated as it progresses, as no stone will be left unturned.”

“IGP Visits Deceased’s Family”

On Sunday, Kayode Egbetokun, the inspector-general of police (IGP), visited the family of the deceased in Ilorin, Kwara state capital.

Egbetokun assured the family that the circumstances that led to the death would be investigated.

The case of Abdulquadri appears to be a civil matter.

On numerous occasions, police officers have been warned against being involved in civil matters, including loan recovery, land, and marriage cases.

Despite the numerous warnings, police officers are still involved in civil cases.

Section 32 (2) under Part VI (Powers of Police Officers) of the Nigerian Police Act 2020 stipulates that the police should not be involved in issues of civil wrong or breach of contract.

After more than five years of security restriction, the Federal Government has lifted the ban on mining exploration activities in Zamfara State, citing significant improvements in the security situation across the state.

Making the announcement during a press briefing at the weekend, the Minister of Solid Minerals Development, Dr. Dele Alake stated that the nation has a lot to gain from reawakened economic activities in a highly mineralised state like Zamfara that is imbued with vast gold, Lithium, and copper belts. He noted that the previous ban, which was good intentioned, inadvertently created a vacuum exploited by illegal miners to fleece the nation of its resources. He emphasized that the state’s potential for contributing to national revenue is enormous.

It will be recalled that in 2019, the federal government imposed a total ban on mining activities in Zamfara State due to the escalating security concerns, particularly the links between banditry and illegal mining.

Since the beginning of the Tinubu administration, however, intelligence-driven, coordinated security operations have resulted in the neutralization of key bandit commanders, significantly reducing incidents of insecurity. A recent success was the capture of one of the most wanted bandit commanders, Halilu Sububu, in a covert operation in Zamfara.

“The existential threat to lives and properties that led to the 2019 ban has abated. The security operatives’ giant strides have led to a notable reduction in the level of insecurity, and with the ban on exploration lifted, Zamfara’s mining sector can gradually begin contributing to the nation’s revenue pool,” Alake asserted.

The minister added that the lifting of the ban would also facilitate better regulation of mining activities in the state. This will enable more effective intelligence gathering to combat illegal mining and ensure the country benefits from the state’s rich mineral resources.

Commending members of the fourth estate of the realm for championing the propagation of reforms and initiatives of the ministry in 2024, Alake noted that the press have been key allies in efforts to sanitise the mining sector, and promote market reforms which have made the industry attractive to indigenous and foreign investors.

On the recent controversy surrounding the Memorandum of Understanding (MOU) with France, Alake reaffirmed the Federal Government’s position that the agreement does not imply Nigeria is relinquishing control over its mineral resources or entering into any military pact with France. He emphasized that Nigeria’s military remains fully capable of safeguarding the nation’s territorial integrity.

“The high point of the MOU is on training and capacity building for our mining professionals. We need all the assistance we can get in terms of capacity, technical, and financial support from abroad, and that wasn’t even the first we are signing. We’ve signed similar ones with Germany and Australia. Deliberate peddling of misinformation, despite facts to the contrary, is uncalled for, “the minister emphasised.

Dr. Alake also urged the media to continue to play its crucial role in educating the public about government policies in order to prevent ignorance, mischief, and the spread of misinformation.

Looking ahead to 2025, the minister hinted at upcoming policy initiatives aimed at revitalizing the mining sector. He revealed that the ministry plans to further consolidate reforms, enhance the enabling environment for investments, and continue efforts to reposition the sector for long-term, sustainable growth.

Segun Tomori, FSCA

Special Assistant on Media

to the Honourable Minister of Solid Minerals Development