Ever wonder why transport prices in Nigeria are so high? Well, it’s not just the cost of petrol.
The latest report shows that road taxes collected by state governments increased by 63% in 2023, highlighting the growing role of road taxes in revenue generation at the state level.
According to the National Bureau of Statistics’ Internally Generated Revenue (IGR) report, total road tax revenues increased from N24.57 billion in 2022 to N40.14 billion in 2023.
Notably, the Federal Capital Territory (FCT) saw its road tax revenues for the year. Lagos State emerged as the largest tax collector with road tax revenue of N16.74 billion, accounting for 41.7% of the state’s total revenue in 2023. Ebonyi State recorded the most dramatic increase with a 3,804.32% increase from N72.95 million in 2022 to N2.85 billion in 2023.
As a result of this increased burden on the transporters, it is only natural that the transport fares would be adjusted in order to compensate. This eventually contributes, alongside other factors, to high transport prices.
