₦airaland Forum

Social Safety Net Expansion: Digitized Transit Subsidies Is Low-hanging Fruit - NAIRAXI

In Nigeria, the need for social safety nets expansion has once again come under the spotlight. This follows call by the Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, seeking governments to prioritize policies that protect vulnerable populations from worsening economic shocks.

In view of this call, NAIRAXI, a digital mobility company is advocating that while food and energy subsidies often dominate public debate, the need for a different but equally urgent intervention to digitize transit subsidies is of national necessity.

NAIRAXI explains that social safety net expansion must accommodate technology-driven transit subsidies. The statement was made by the CEO of NAIRAXI, Kingsley Eze while speaking on Arise News Business Week in Abuja.

With inflation at record highs and transportation costs biting hard, NAIRAXI insists that digitized transit subsidies should not remain an idea on paper.

The company describes the intervention as a “low-hanging fruit” which is cost-effective, scalable, and capable of producing immediate relief to millions Nigerians.

In Nigeria, transportation consumes a significant portion of household income, especially for low- and middle-income families. Rising fuel prices, limited alternatives to road travel, and weak transport infrastructure have left commuters spending up to 40% of their daily earnings on mobility.

“Without affordable and reliable mobility, Nigerians are cut off from opportunities,” said Kingsley Eze, Co-Founder and CEO of NAIRAXI. “The daily struggle to afford transport directly impacts access to jobs, education, and healthcare. It keeps people trapped in cycles of poverty.”

Overtime, subsidy schemes have often been criticized for being inefficient, poorly targeted, and vulnerable to corruption. This is because the billions of naira allocated to social interventions frequently fail to reach their intended beneficiaries.

However, NAIRAXI believes that the digitization of transport subsidies can reverse this trend to ensure transparency, accountability, effectiveness, strategic targeting and reduced vulnerability to corruption.

Through NFC-powered smart cards, mobile wallets, and digital ticketing systems, governments can channel subsidies directly to commuters.

This ensures that support goes to those who need it most, while creating a transparent audit trail that eliminates leakages and middlemen.

“Technology gives us visibility and accountability. Every naira spent can be traced to an actual commuter, making the subsidy system efficient and trusted,” Eze explained.

He added that digitized transit subsidies are not theoretical. They work, they scale, and they deliver real impact,” Eze stressed.

In countries like Brazil, India, and Kenya digitized welfare and transit support has worked remarkably. Brazil’s Bolsa Família program and India’s Direct Benefit Transfer (DBT) scheme both rely on digital infrastructure to deliver subsidies to millions of citizens with minimal leakages.

Similarly, in Nairobi, Kenya, the rollout of digital fare payment systems on buses and minibuses has improved revenue transparency while providing a foundation for government-led subsidy programs.

NAIRAXI has therefore called for collaboration between government and private operators towards achieving fruition in digitizing transit subsidies to expand am the social safety nets.

While government provides the policy framework and financing, companies like NAIRAXI bring the technology platforms, fleet management experience, and operational capacity needed to execute at scale.

“This is where Public-Private Partnerships (PPPs) become critical. The government cannot shoulder this responsibility alone. By leveraging private innovation, we can move quickly and sustainably,” Eze said.

Affordable transport reduces the cost of doing business, enhances workforce productivity, and encourages school attendance. For vulnerable households, it also frees up disposable income for food, healthcare, and other essentials.

“Technology-enabled subsidies are not only about reducing transport costs. They are about restoring dignity, expanding opportunity, and giving struggling Nigerians a fair chance to participate in the economy,” Eze concluded.

https://www.youtube.com/watch?v=ze39I4JA67M?si=QVQ2OFBqulM9H96v

When is the right age to just retire and face your family as a very successful woman like our Iweala?

The " PART" Tinubu govt will never want to talk about, their pick his She said Nigeria's economy is good

All these washed stories won't change anything.

Being smart and intelligent doesn't mean you know it all. What safety net will work? The govt has within the past two years shared monies in the name of intervention(renewed hope) to the poor, has this reduced poverty in the country? 50k or whatever pittance we share can't solve anything so far the purchasing power remains low.

Okonjo Iweala has always been pro-world bank/IMF stringent policies, so expecting anything different from her is a waste of time.

In view of this call, NAIRAXI, a digital mobility company is advocating that while food and energy subsidies often dominate public debate, the need for a different but equally urgent intervention to digitize transit subsidies is of national necessity.

what is the wisdom in removing fuel and electricity subsidies which helped to keep inflation down only to create another subsidy?

by the way, Nairaxi de hustle their own

They should please invite the Eze guy for questioning and the motive behind his utterances. I don’t trust them.

All these sponsored, political businessmen sef.

ybalogs:
When is the right age to just retire and face your family as a very successful woman like our Iweala?

How do you mean? Which family again? It's been a very happy family.