Nigerians are now paying more than double for motorcycle taxi, or okada, rides compared to when President Bola Tinubu assumed office in May 2023, according to data from the National Bureau of Statistics (NBS). The average okada fare jumped from N464.55 in May 2023 to N1,072.51 in May 2026, marking a 130.87 percent increase over three years.
Fuel Subsidy Removal and FX Liberalisation Drive Costs
The sharp rise in okada fares is directly linked to two major policy changes initiated shortly after Tinubu's inauguration. The removal of the petrol subsidy on May 29, 2023, led to an immediate spike in fuel prices across the country. Additionally, the liberalisation of the foreign exchange market weakened the naira, making imported goods such as motorcycles, spare parts, lubricants, and fuel significantly more expensive for operators. These increased operational costs have been passed on to passengers.
Month-on-Month and Year-on-Year Trends
The NBS Transport Fare Watch report for May 2026 indicates that the upward trend in fares continues. The average okada fare stood at N1,072.51 in May 2026, a 3.56 percent increase from N1,035.69 recorded in April 2026. On a year-on-year basis, the fare rose by 52.45 percent from N703.54 in May 2025. In contrast, the May 2023 report showed a more modest trajectory: the average fare was N464.55, a 0.49 percent increase from April 2023 (N462.29), and a year-on-year rise of 11.30 percent from May 2022 (N417.39).
The NBS data also revealed that rising transport costs were not limited to okada. In May 2026, fares for intra-city bus journeys, intercity road travel, air tickets, and water transportation all increased, reflecting broader inflationary pressures in the transport sector.
Impact on Commuters
The 130 percent surge in okada fares over three years has added to the financial burden on Nigerian commuters, many of whom rely on motorcycle taxis for short-distance travel in congested urban areas. The combination of high fuel costs and a weak currency continues to strain household budgets, with transport expenses consuming a growing share of disposable income.
According to the NBS, the transport fare watch is a monthly survey that tracks the average cost of various modes of transportation across Nigeria. The data underscores the persistent inflationary pressures in the economy, driven by policy reforms and external factors.
