Market News
Airfares jumped by 25.51% in August – NBS - PUNCH
The average fare paid by air passengers for specified routes on a single journey rose sharply in August 2024, hitting N123,700.14.
This represents a 25.51 per cent increase compared to N98,560.28 in July 2024.
In a report by the Nigeria Bureau of Statistics on Tuesday, on a year-on-year basis, the fare jumped by 56.56 per cent from N79,011.38 in August last year, making air travel more expensive for commuters.
In other categories, the average fare for bus journeys within cities dropped to N869.35 in August 2024, showing a decrease of 7.77 per cent from N942.61 in July 2024.
For intercity bus journeys, the average fare rose slightly by 0.59 per cent, reaching N7,159.00 in August 2024, compared to N7,117.17 in July this year. On an annual basis, the fare increased by 20.97 per cent, up from N5,918.18 in August 2023, reflecting rising operational costs for transport companies.
Meanwhile, commuters using motorcycles (popularly known as Okada) experienced a fare increase as well. The average fare for a single drop in August 2024 was N524.22, up 8.46 per cent from N483.33 in July 2024. However, on a year-on-year basis, the fare dropped by 18.87 per cent from N646.12 in August 2023.
Waterway transportation, often used in riverine areas, also saw a fare hike. The average fare paid for waterway passenger transport rose to N1,449.34 in August 2024, an increase of 3.30 per cent from N1,402.95 in July 2024. On a year-on-year basis, the fare rose by 3.03 per cent from N1,406.74 recorded in August 2023.
Overall, while some categories of transport fares have declined, the significant increases in air and intercity transport costs signal continued inflationary pressures on longer-distance travel.
In July, PUNCH reported that amid complaints by the Airline Operators of Nigeria over multiple taxation, the Federal Government has expressed its intention to further raise its charges.
