The National Bureau of Statistics’ latest Transport Fare Watch for January 2023 shows that the average fare for motorcycle (okada) rides increased by 36.75 % year‑on‑year, rising from N340.94 in January 2022 to N466.25 in January 2023. On a month‑on‑month basis, the fare was 1.04 % higher than in December 2022 (N461.45). The report appears to contain an error, citing “January 2021” instead of “January 2022.” The January 2022 data, verified by our correspondent, recorded an average okada fare of N262.03 in January 2021 and N340.94 in January 2022.
For bus transport within the city, the average fare per drop increased by 0.94 % month‑on‑month, from N644.66 in December 2022 to N650.70 in January 2023. Year‑on‑year, the fare rose by 36.59 % to N476.39 in January 2022. Intercity bus fares per drop reached N3,998.42 in January 2023, a 0.68 % month‑on‑month increase from N3,971.22 in December 2022. Inter‑state bus fares jumped 42.73 % year‑on‑year, climbing from N2,801.34 in January 2022.
Air travel fares also rose. The average fare for a single journey on specified routes increased by 0.16 % month‑on‑month, from N74,586.49 in December 2022 to N74,702.70 in January 2023, and surged 94.78 % year‑on‑year from N38,352.19 in January 2022. Water transport fares grew as well, reaching N1,032.84 in January 2023—a 16.28 % year‑on‑year rise from N888.24 and a 0.40 % month‑on‑month increase from N1,028.73 in December.
These fare hikes occur against a backdrop of naira scarcity and petrol shortages. Central Bank of Nigeria (CBN) Governor Godwin Emefiele explained that the naira redesign policy aims to retrieve approximately N2.7 trillion held outside bank vaults, arguing that such a large amount outside the banking system hampers the effectiveness of monetary policy. Announced in October 2022, the policy targeted the release of redesigned notes by 15 December 2022 to control currency circulation, curb counterfeiting, and reduce ransom payments to kidnappers and terrorists. Emefiele emphasized that the integrity, efficient supply, and efficacy of a legal tender are hallmarks of a strong central bank, but recent currency‑management challenges have created unintended consequences for both the CBN and the country.
The International Monetary Fund has cautioned the CBN to proceed carefully with the naira redesign, warning that the shortage of new notes is disrupting trade and payments and causing hardship for Nigerians.
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