Politics

Oyo State Invests N2.1 Billion to Subsidize Transport for Nearly 6 Million Passengers

Published by Tope Fakinlede on July 22nd, 2025.

Oyo State Invests N2.1 Billion to Subsidize Transport for Nearly 6 Million Passengers

Dr. Ibrahim Dikko, Chairman and Sole Administrator of Pacesetter Transport Services, announced on Monday that the Oyo State government has provided a transport fare subsidy benefiting approximately 5.88 million passengers from January to July 2025 under the Sustainable Action for Economic Recovery (SAfER) program.

The SAfER Transport initiative, launched by Governor Seyi Makinde, aims to ease the financial burden on residents amidst economic challenges. The subsidy specifically supports students, pensioners, elderly citizens, people with disabilities, and other residents using the state-operated Pacesetter Buses for both intra-city and inter-city travel.

In a briefing held at the Governor’s Office, Dikko revealed that in 2024 alone, Pacesetter Transport Services ferried close to 9.95 million passengers. He highlighted that the state government has allocated a total of N2.1 billion towards subsidizing fares on various routes, including Ibadan-Iseyin-Saki, Ibadan-Oyo-Ogbomoso, and Ibadan-Ibarapa.

“Since Governor Makinde introduced the SAfER initiative on August 5, 2023, the government has injected over N2.15 billion to support affordable transportation for citizens,” Dikko explained.

He further broke down the investments: N541 million was spent from August to December 2023, providing a 50% fare reduction and serving between 26,000 to 30,000 passengers daily. In 2024, the subsidy amounted to N924 million with almost 10 million passengers transported. For the current year, N686 million has been allocated so far, covering nearly 5.88 million passengers to date.

Dikko emphasized the government’s commitment to revitalizing the Pacesetter Transport Services, which had been struggling before Governor Makinde’s administration began in 2019. Since his appointment as Chairman in July 2023, the company has seen significant progress, including an expanded fleet, improved routes, workforce restructuring, and enhanced service quality.

Innovations introduced under his leadership include digital payment systems and the installation of CCTV cameras and vehicle trackers to boost security and efficiency. Currently, Pacesetter operates 39 intra-city routes with 55 buses and 5 inter-city routes serviced by 10 buses.

Upon taking office, Dikko revitalized 30 buses for use within Ibadan and added 16 buses for intercity travel, totaling 46 buses dedicated to the SAfER program. He also reported successfully tackling issues like revenue loss, fuel theft, route deviations, and speeding by drivers. The transport service transitioned to a cashless payment system on September 24, 2023, enhancing transparency and convenience.