The Managing Director of Primero Transport Services, Afolabi Tinubu, has revealed the staggering cost realities threatening private mass transit operations in Nigeria.
“When we started, diesel was about ₦120 per litre. Today it’s over ₦1,000. At one point it hit ₦1,500″, he said. “Right now, 80 per cent of our revenue goes to diesel”.
Fielding questions in an interview with JustNet News, Tinubu disclosed that the company’s financial strain began with the collapse of the naira shortly after buses were procured from China at ₦160 to $1 — a rate that has since ballooned beyond ₦1,000 to the dollar.
“The debt we took to buy the buses more than doubled”, he said. “If I knew what I know now, I probably wouldn’t have encouraged my investors to make that investment”.
He added that spare parts and tyres have also surged astronomically.
“Tyres we bought at ₦60,000 now cost ₦300,000 to ₦400,000. Some components have gone up by 300 to 1,000 per cent”.
Despite the pressure, fares have not increased proportionately.
“When we started, TBS was about ₦400 or ₦500. It’s now ₦800. That’s not up to 100 per cent increase, but my costs have gone up several hundred per cent”.
Tinubu warned that without deliberate structural support, private sector participation in public transport may remain unsustainable.
“If we want a world-class service, it has to be paid for. The question is who pays”?