To mitigate the impact of fuel subsidy removal, Nigerian tech-driven company NAIRAXI, in collaboration with partners Firstplus, has unveiled a digital system aimed at bolstering mass transportation in Abuja, Nigeria.
This private sector-driven approach to digitizing mass transit systems is seen as crucial in alleviating the difficulties faced by commuters in Nigeria.
Tracking Revenue and Equipping Buses
The technology implemented by Firstplus and NAIRAXI enables transport operators to monitor their revenue. Currently, discussions are underway between NAIRAXI, Firstplus, and the FCT administration to equip a significant number of buses with the required digital technology. This effort aims to ensure sustainable operations and maximize the government’s investment in transportation.
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Enhancing Efficiency and Minimizing Congestion
The initiative also leverages technology to improve routing plans, leading to reduced congestion and enhanced overall efficiency of Nigeria’s public transport system. Progress will be tracked using key performance indicators. Yusuf Aliyu Umar, Chairman of Firstplus, expressed enthusiasm for collaborating with the FCT administration and highlighted the positive impact the mass transit scheme would have on Nigerians and the transportation landscape.
NAIRAXI’s Innovation to Reduce Transportation Costs and Combat Climate Change
Umar emphasized that a standardized mass transit scheme in Nigeria would result in fewer vehicles on the road, thereby reducing fossil fuel pollution and contributing to the fight against climate change. Kingsley Eze, Co-founder and CEO of NAIRAXI, explained that the initiative’s main objective is to improve access to affordable transport services, particularly for low-income earners.
This development follows closely after NAIRAXI’s collaboration with the Kano Metropolitan Transport Company to digitize mass mobility on major routes in Kano City. Eze highlighted the sustainability of the initiative, which enables effective government subsidies for mass transportation while generating substantial revenue. The Automated Fare Collection system of NAIRAXI facilitates the use of contactless smart cards as cashless payment instruments for public transportation.
The tech firm is partnering with road transport operators and state governments to introduce technology into mass transit systems, focusing on adequate payment systems, accessibility, ease of payment, automated fare collection, security, and monitoring for sustainable management.
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Addressing Economic Challenges and Fuel Subsidy Removal
Eze emphasized that the customized electronic transit cards and subsidized mass transportation provided by NAIRAXI aim to alleviate the economic hardships caused by the removal of fuel subsidies. By implementing the Auto-fare Collection System (AFCS) and User Smart Card (USC), the company seeks to curb corruption and fraudulent activities in fare collection while also tracking transaction and payment history.
Elizabeth Omale, Co-founder and COO of NAIRAXI, stated that the initiative would revolutionize Nigeria’s transport sector and alleviate the difficulties resulting from fuel subsidy removal. She highlighted NAIRAXI as a homegrown indigenous app that seeks to make a significant impact in the transportation industry. The transport sector holds untapped potential, and President Bola Ahmed Tinubu GCFR, who took office three weeks ago, has introduced policies such as fuel subsidy removal and exchange rate unification, aiming to position Nigeria as an attractive investment destination.
President Tinubu’s Stance on Fuel Subsidy Removal
In his inaugural address, President Bola Ahmed Tinubu confirmed that his administration would no longer continue paying fuel subsidies. He acknowledged the ongoing removal of subsidies in the 2023 budget and emphasized the need to end the practice of subsidizing fuel in the country.