Home Community Insights Subsidy Removal: Lagos State Slashes Transport Fares by 50% and 25%, Offers Free Medical Services

Subsidy Removal: Lagos State Slashes Transport Fares by 50% and 25%, Offers Free Medical Services

Subsidy Removal: Lagos State Slashes Transport Fares by 50% and 25%, Offers Free Medical Services

The Lagos State Government, in a move to minimize the weight of fuel subsidy removal on Lagosians, has slashed the costs of transportation of all state-owned transport systems by 50 percent and commercial vehicles by 25 percent.

The move comes as part of efforts by state governments to mitigate the effect of the subsidy removal, which has pushed petrol price up to N617 per liter from N195.

Transport and food costs have been identified as the most affected by the federal government’s decision, which was announced in May by President Bola Tinubu. The Lagos State government said in addition, there will be distribution of foodstuff to the vulnerable in the state, and also a measure of free medical services.

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Governor Babajide Sanwo-Olu emphasized during a press briefing at the Lagos House in Ikeja that the state government is committed to providing palliatives to alleviate the burden caused by the removal of fuel subsidy on citizens.

He announced that starting from Wednesday, August 2, 2023, the government will implement the 50 percent reduction in transportation costs. He said in addition that modalities have been put in place to help the informal transportation sector, particularly the yellow buses, to lower their charges by 25 percent.

“Dear Lagosians, I understand the concerns and challenges faced by our citizens during these growth and transformational times. In response to the effects of the fuel subsidy removal, I’m introducing a series of measures for economic and humanitarian relief. From Wednesday, we’re implementing a 50% fare reduction on all Lagos Buses, easing the burden on commuters across the city. In collaboration with the bus unions, 25% off all yellow buses (danfo) fares will be communicated officially by the unions. Additionally, I’m pleased to announce a 50% fare reduction on all LagFerry routes,” the governor said.

“This will provide more accessible and affordable transportation options for our residents. Recognizing the importance of affordable healthcare, I’m directing our General Hospitals to offer free ante-natal services and delivery; normal and C-section services. This is ensuring the health of our families is taken care of without worrying about financial constraints.

“Our dedicated Lagos State Workers are vital to our progress as a state. To support you during this transition, we’re expanding the fleet of Staff Buses for our public service employees. Your well-being is a top priority. Standing in solidarity with the vulnerable in our society, we’re providing direct food relief to the vulnerable through various stakeholders – CDAs, Religious Groups, etc. Let’s come together as one family during these times of change. I promise that these are only the first steps in our commitment to uplifting our people. Stay strong, Lagos. We’ve got this.”

However, Lagosians have expressed doubt that the initiative will be successfully implemented. Although the governor did not give details of how the state intends to implement the initiative in the informal transport sector, many are concerned that if they’re not duly compensated, commercial bus operators will find it hard to cooperate with the initiative. This is because of the high rate of taxes they pay daily to state and non-state actors. 

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