Public Transport Pricing in Nigeria
Journal Title: Advances in Social Sciences Research Journal - Year 2017, Vol 4, Issue 17
Abstract
Public transport is an important social service that satisfies the travel needs of citizens. Hence, the need to regulate transit operations especially fare so as to make it affordable to the riders. This study examines the regulation and pricing of public transport operations in Lagos, Nigeria. The required data was sourced from executives of National Union of Road Transport Workers unions and 200 willing passengers at Oshodi and Obalende parks. Findings show that there is no government agency regulating fare in the study area although the power is vested on Lagos Metropolitan Area Transport Authority. The fixing and regulation of fare is the prerogative of the private transit operators. This encouraged arbitrary hiking of fare without any justifiable reasons. The result of transit pricing indicates that the operators’ charges fare to realise enough revenue to cover all costs and make profit. The method employed though not formal share some similarities with second best pricing in which all costs are met by setting price equal to average cost. They employed zonal fare structure graduated by distance to determine the fare paid by passengers. The factors that determine the fare charge are types of vehicle, quality of service, operating costs and road conditions. The passengers’ perceived that transport fare is high and does not correspond to services rendered by transit operators. Surprisingly, some passengers spent more than half of their monthly income on fare. The study concludes that transit pricing is not regulated in Lagos and probably in some other parts of the country, which has socio-economic implications on the transit riders.
Authors and Affiliations
Wojuade Christopher Adesola
Keywords
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- EP ID EP330225
- DOI 10.14738/assrj.417.3507.
- Views 200
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