Uber, Bolt drivers insist on N2,000 minimum fare per trip

Drivers of Uber and Bolt have insisted on riders paying a minimum fare of N2,000 per trip.

This follows the hike in the pump price of petrol from N184 per litre to about N500 after the removal of fuel subsidy.

The drivers under the aegis of Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWN) also said they would not back down on their protest against the Federal Government’s removal of fuel subsidy until their demands are granted.

The union which rose from its national emergency meeting in Lagos on Wednesday said it would continue with its nationwide protest on Thursday (today).

The union said its members across the country would participate in the industrial action.

It said the demand for a 200 per cent increase in the fare per trip was justifiable after the fuel price hike.

The union’s National President Damola Adeniran, was quoted in a statement by Media and Publicity Committee Chairman, Jossy Olawale, that AUATWN members were beginning to run at a loss.

“We have overtimes been subjected to hardship, oppression and cowed in the name of wanting to survive as unemployed graduates who humbly undertake driving job,” he said.

Adeniran said Bolt had started blocking the account of members of the excos of the union over the protest.

The union leader asked for more equitable payment for AUATWN’s workers.

He said, “As a union, we have the right to protest and protect the right of our members for better welfare, as a result which we cannot be punished while undertaking this lawful path.”

The union leader said the demands of AUATWN’s members remained unchanged: increase in fares by 200 per cent and reduction of commission by 50 per cent, among others.

Uber, Bolt drivers insist on N2,000 minimum fare per trip 

Shettima to lead discussions on subsidy removal palliatives

Vice-President Kashim Shettima will coordinate discussions on governments’ interventions to mitigate the impact of fuel subsidy removal on the people.

Already, President Bola Tinubu has directed the VP-led National Economic Council to begin the process.

This was disclosed on Wednesday by Governor Dapo Abiodun of Ogun State while briefing State House reporters after leading some major oil marketers on a visit to the President at the Presidential Villa, Abuja.

The governor said the marketers were in the presidential villa to express solidarity with the president for his bold decision to end subsidy payment on Premium Motor Spirit (PMS) popularly known as petrol.

He said the President’s action showed his determination and courage to remove the hemorrhage that had bedevilled the country for decades.

The governor said while there would be some discomfort on the part of the people, the move would eventually pay off as there can be no gains without pains.

He said with the policy in place, the country would be saving over N6 trillion annually.

Abiodun noted that fuel prices had escalated in some neighbouring countries because of the increase in pump price in Nigeria.

Fuel subsidy removal may push more people into poverty, KPMG warns

A multinational audit, tax and advisory services firm, KPMG, has predicted that the removal of petrol subsidy in Nigeria could see the inflation rate climb to 30 per cent from June.

Indeed, it warned in its latest report that the precarious situation could push more people into poverty unless compensating measures are put in place with effective communication to mitigate its effects on the people.

Removal of petrol subsidy was one of the highlights of President Bola Tinubu’s inaugural address on May 29. The announcement was followed by increase in petrol price by the Nigerian National Petroleum Company (NNPC) Limited.

The price hike elicited quick reactions from the organised labour which accused the government of failing to engage in necessary consultations before removing the subsidy.

The KPMG report stated that the removal of fuel subsidies would result in a temporary increase in inflation, which was at 22.22 per cent, as at April 2023.

It said its prediction aligned with the World Bank projection that a one-off adjustment would lead to higher inflation in 2023 and 2024, and lower thereafter.

KPMG stated, “Our internal macro model also supports the World Bank’s findings with a forecast of an increase of about six per cent over June 2023 inflation rate to bring it to about 30 per cent.

“In mid-2024, however, all other things remaining constant, and as year-on-year base effects kick in, the pace of inflation will drop significantly, though overall prices of goods and services will remain elevated.”

According to the firm, the capacity of the Central Bank of Nigeria (CBN) to manage inflationary pressures through effective monetary policy would be a major factor in halting the inflationary pressures.

However, KPMG stated that the CBN, like monetary authorities in other parts of the world, was struggling to contain runaway inflation while there were legitimate questions regarding the efficacy of interest rate hikes to contain inflation.

It stated, “However, for gradual or immediate deregulation to be effective, several conditions will have to be met, vis-a-vis establishing a robust and sustainable market for eligible importers to access, on a non-discriminatory basis, sufficient supply foreign exchange liquidity at the same rate for all eligible fuel suppliers.

“This will require significant and far-reaching reforms to CBN’s current approach to foreign exchange management to enhance supply of FX and bring down the parallel market rate.”

The organisation said a robust coordination with the states as well as with the fiscal authorities and the CBN in managing the monetary aspects of deregulation and subsidy removal was vital.

KPMG also warned that without foreign exchange reforms and an elimination of the gap between the official and parallel exchange rate, the reforms would not work.