The sudden removal of the subsidy on petrol last year came with some ripple effects. It not only disrupted the social life of the people, but it also dislocated the nation’s economy, thereby putting it in crisis. The outcome led to a sudden jump in prices of goods and services, making food and transportation beyond the reach of the average Nigerian.
While some people applauded and welcomed the decision to remove the fuel subsidy, others condemned it entirely, noting that some measures ought to have been put in place to cushion the expected effects before the removal.
Taking a look at the whole fuel subsidy issue, many believe that ordinary citizens were not benefiting as they should, as the real beneficiaries were the elites who ran their fleets of state-of-the-art automobiles with cheap fuel, as well as the fuel importers who received payments but imported nothing. On this premise, the removal of the subsidy by President Muhammadu Buhari, which the new helmsman, President Bola Ahmed Tinubu, gave effect to on assumption of office on May 29, 2023, was a step in the right direction.
The subsidy removal, no doubt, has brought a lot of hardship to the land, but no policy or program of government anywhere in the world that will have a long-lasting positive impact on the citizenry is without a little discomfort. It can be likened to a pregnant woman who is going through the process of giving birth. She has to experience one form of pain or another, but in the end, the arrival of a baby will be her joy. This aligns with the saying, “no pain, no gain.” The good thing about the whole issue of subsidy removal is that a lot of money is being saved for developmental projects that will benefit both the rich and the poor.
During the 2023 campaign for the presidential election, the three main contenders for the coveted seat indicated their desire to remove the fuel subsidy if elected. Leading a forward-looking government and as a man who not only thinks outside the box but around the box, Prince Dapo Abiodun, being a major player in the oil and gas sector, had envisaged that the subsidy removal would inevitably raise fuel prices and that this would raise some issues among the people. To be ready for this scenario, the government came up with the idea of finding other alternatives to drive the transportation sector of the state’s economy.
It is a known fact that humans, since creation, have always sought alternatives and other choices in making ends meet. Like Mary Kay Ash, a renowned American businesswoman, said, “For every failure, there is an alternative course of action. You just have to find it. When you come to a roadblock, take a detour.” In finding the alternative, Prince Abiodun decided to go the condensed natural gas (CNG) and electric route. Why? If one may ask, the answer is simple: they are cheaper and readily available.
For the people of Ogun State, especially those in the transportation industry, July 31, 2024, will remain etched in their minds as it marked the beginning when electric motorcycles and tricycles tagged “DA Bike” were incorporated into the state mass transit system.
The program, which came barely a year after the state blazed the trail in converting and launching CNG mass transit buses, is designed to serve two purposes: reduce the cost of transportation in the state and ensure a cleaner environment.
At the launch of the first phase of 2,000 electric motorcycles at the Arcade Ground, Governor’s Office, Oke-Mosan, Abeokuta, the state governor, Prince Abiodun, emphasized that the E-Mobility initiative marks another milestone in the life of his administration towards a sustainable and green future for the state.
Abiodun, who was emphatic about his desire to lessen the pain people are going through, said: “Our administration is committed to mitigating the impact of the subsidy removal and the high cost of diesel fuel while reducing transportation costs for our citizens.
“We will be realizing about 2,000 e-bikes in the first phase. These commercial motorbikes can ride up to 75-80 kilometers on a full charge, and the vehicles can travel up to 200 kilometers, thus reducing transportation costs by 40 percent.
Shading more light on why his administration adopted the E-Mobility system, the governor explained, “We aim to reduce our carbon footprint and bring about a significant change in how we think about transportation in our daily lives. This aligns with our energy transformation program for a cleaner and healthier environment for future generations.”
Ogun State government, the governor noted, has led the country in energy transition, being the first state to launch and deploy CNG buses about a year ago.
A closer look at what has happened since the launch of the CNG buses last year shows that they are currently deployed on the Ita-Oshin-Adatan route in Abeokuta, as well as the Mowe-Ibafo to Lagos route, serving residents in that corridor and drastically reducing transportation fares.
Ogun State, through the launching of electric bikes, tricycles, vehicles, and battery swap stations at specific points, is not only introducing a new mode of transportation but also pioneering a movement towards a cleaner, more efficient, and technologically advanced way of life.
To support this laudable landmark achieved by the state, Governor Abiodun used the occasion to announce the groundbreaking of a new facility, named Giga Facility, at the Special Agro Processing Zone located in Iperu-Remo.
The facility, according to the governor, has a total investment of $40 million and would serve as an assembly plant for electric bikes, two-wheelers, tricycles, commercial buses, electric cars, and swap stations.
“This investment will be implemented in three phases, beginning with phase one, focusing on our e-okada bike assembly, and of course, phase two with our tricycles, and phase three with our e-vehicles. It will create over 10,000 direct jobs and 50,000 indirect jobs for assembly line operators,” he said.
The initiative is not only about enhancing transportation options but also about creating jobs, stimulating local economies, and ensuring that the youth have access to the skills that will be vital in the future job market. By fostering innovation and technical proficiency, the state is investing in the talent of tomorrow and building a workforce that is ready to embrace the challenges and opportunities of a rapidly changing world.
As the chief marketing officer of his state, Abiodun expressed the commitment of his administration to continue encouraging public-private partnerships for the economic prosperity of the people. He equally urged investors to take advantage of the peaceful and conducive business environment to invest in all sectors of the state’s economy, as the state is open for business.
Also speaking, the Minister of Transportation, Alhaji Sa’idu Ahmed Alkali, who expressed delight in visiting the state again within two months, lauded the state for being the first to launch the E-Mobility initiative, adding that with this development, Ogun has joined African countries that are currently using more than 15,000 e-bikes in their transportation sectors.
He opined that the program would revolutionize the transportation sector not only in the state but the whole country, as it would provide an alternative to fuel at reduced costs.
Senator Alkali called on other state governments to take a cue from Ogun State in partnering with the federal government on CNG usage, just as he encouraged the public to support the program to create jobs and make transportation cheaper, more efficient, and environmentally friendly.
The Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), Mele Kyari, represented by Mr. Lekan Ogunleye lauded the state for always being the first in any innovation that would benefit the people.
He said the E-Mobility Program is capable of cutting transportation costs for both passengers and operators, as well as saving the environment from pollution, assuring that NNPCL would have three charging points in its stations across the country while supporting the state government by making swap stations available in its stations across the state.
Commissioner for Transportation, Mr. Olugbenga Dairo, while welcoming guests to the launch, said the program was a follow-up to the conversion of the CNG buses last year and all geared towards addressing the increase in transportation fares occasioned by the subsidy removal.
The Alake and Paramount Ruler of Egbaland, Oba Adedotun Gbadebo, who gave his royal blessings to the initiative, lauded the governor for initiating the program, which he said is environmentally friendly. He expressed the hope that it would bring down transportation costs and improve the standard of living of the people.
As a state that has over the years demonstrated its capacity in showing the way through the exploits of its indigenes in various fields of human endeavor, one is not surprised that Ogun is yet again setting the pace in pioneering the e-bikes revolution in the transportation sector of the country.
The initiative is another testimony that the Prince Dapo Abiodun-led administration is not oblivious to the plight of the people who are daily grappling with the challenges posed by the subsidy removal. The initiative is a clear demonstration that the Ogun State Government is not resting on its oars but working round the clock to mitigate the hardship.
Mr. Udofia writes from Laderin, Abeokuta.
Elijah Udofia: Mitigating transportation cost through E-bikes: The Ogun example
