Subsidy Removal: Nigerian Company Unveils Tech Solutions For BRT, Other Mass Transit Operators
- Nigerian mobility and a tech-driven firm have unveiled a digital system to support mass transportation in Nigeria
- The company, in cahoots with other partners, said the aim is to reduce the impact of petrol subsidy removal
- The tech firm adopted technology to ensure adequate payment systems, proper accessibility, ease of payment, and automated fare collection
To cushion the effect of the fuel subsidy removal, Nigerian tech-driven company NAIRAX, and partners, Firstplus have released a digital system to support mass transportation in the Abuja metropolis.
The company has maintained that the private sector-driven approach to digitalizing mass transit systems is vital in cushioning the sufferings and challenges of transportation within Nigeria.
Source: Getty Images
Transport operators track their revenue via the technology
Firstplus and Nairaxi are currently in talks with FCT regarding how they can assist in equipping most of their buses. Discussions are ongoing to introduce the required digital technology to maintain sustainable operations and maximum return on the government's investment in transportation.
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This initiative will also leverage technology to improve routing plans that will minimize congestion and improve the overall efficiency of the public transport system in Nigeria. He explained that the initiative's progress can be tracked with key performance indicators.
Chairman of Firstplus, Yusuf Aliyu Umar, described the ongoing plans to work with the FCT administration.
The plan will help to soothe and soften the impacts of the fuel subsidy on Nigerians. He explained that the mass transit scheme would benefit Nigerians and change the transportation landscape.
Innovation aims to reduce transportation cost
Still reacting to the prospective innovation, he noted that a Standardized mass transit scheme in Nigeria would translate into lesser vehicles on the road, which means less fossil fuel pollution and a means to combat climate change.
Addressing journalists a few days ago, Co-founder and Chief Executive Officer of Nairaxi, Kingsley Eze, said the initiative would enhance access to affordable transport services. This service will be provided for all societal segments, especially low-income earners.
The move is coming a few weeks after Nairaxi, in collaboration with Kano Metropolitan Transport Company, kicked off the digitization of mass mobility across major routes in Kano City.
Eze said that the initiative provides a sustainable platform through which mass Transportation can be effectively subsidized by governments and yet create colossal revenue.
The Sun reported that the Automated Fare Collection system of NAIRAXI allows the convenient use of contactless smart cards as cashless payment instruments in public transportation modes.
Technology uses contactless solutions
According to him, NAIRAXI is collaborating with other road transport Operators alongside state governments to introduce technology into our mass transit systems.
The tech firm has adopted technology to ensure adequate payment systems, proper accessibility, ease of payment, automated fare collection, security, and monitoring for sustainable management.
He stated that these initiatives would curb the corruption and fraudulent activities in fare collection by implementing the Auto -fare collection system (AFCS) and user smart card (USC), designed to track transaction and payment history.
Eze explained that it would provide customized electronic transit cards and subsidize mass transportation on behalf of the government to reduce the harsh economic conditions experienced by the masses due to the removal of fuel subsidies.
He emphasized the need that has been found in the market and the removal of subsidies that have created the need to provide palliatives that will cushion the effects established by the private sector, which will ensure progress in the country.
Also speaking during the conference, the Co-founder and COO Elizabeth Omale stated that the initiative would revolutionalize the transport sector in Nigeria and help reduce the harsh conditions created by fuel subsidy removal.
According to Elizabeth, NAIRAXI is a homegrown indigenous app that has come to make a difference in the transport sector. She explained that much must be tapped out from the transport sector.
President Bola Ahmed Tinubu GCFR, since he assumed office three weeks ago, has Introduced policies like fuel subsidy removal, unification of exchange rates, and other pro-market development policies that have huge potential to make our country an investment destination.
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“Fuel subsidy Is Gone,” President Tinubu reveals in inaugural Address
Legit.ng reported that the newly inaugurated Nigerian President, Bola Ahmed Tinubu, has stated that his administration will not continue paying fuel subsidies.
Tinubu made this known during his inaugural speech at the Presidential inauguration at Eagles Square, Abuja, on Monday, May 29.
According to Tinubu, he is fully aware of the subsidy removal in the 2023 budget, already running before his administration took over, noting that the country cannot continue to pay fuel subsidies, The Nigerian Tribune reported.
Source: Legit.ng
