News

February 8, 2024

Fare hike: OTI remains peaceful, safe and secure-Mgt assures Lagos commuters

Fare hike: OTI remains peaceful, safe and secure-Mgt assures Lagos commuters

By Olasunkanmi Akoni

The Management of Oshodi Transport Interchange, OTI, has refuted media report that there was a looming crisis and tension at the facility following recent review of service charges.

OTI management however, stated that the facility remained peaceful, safe and secure with utter commitment to serving commuters optimally.

The clarification has become necessary following recent report by one of the National Dailies, (Not Vanguard) of a looming crisis at the OTI as a result of hike in service charge from N600 to N2000 which took effect from Thursday, February 1, 2024.

It was also reported that the Association of Luxury Bus Owners of Nigeria, ALBON, had sent a protest letter to the Lagos State Government through the Planet Project Limited, which operates the terminal.

Director, Operations and Maintenance, OTI, Ade Ibileke, apparently reacting to the report in a statement made available to Vanguard, described the report as “erroneous, a misrepresentation of facts.”

According to Ibileke: “Contrary to the report, we unequivocally state that there is no tension, looming crisis or any trouble at the interchange. Commercial activities and transport operations are going on in the interchange seamlessly.

“The interchange has been operating successfully since 2019 without any major incident including fire, robbery, or armed attack and the facility was even successfully secured during the EndSARS crisis in 2020.

“OTI daily caters for over 20,000 passengers with about 45 bus operating companies [National Union of Road Transport Workers (NURTW) – 1, Association of Luxury Bus Owners of Nigeria (ALBON) – 13, Public Transport Owners of Nigeria Association (PTONA) – 18 and LAMATA Franchise bus operating companies (BOC) – 13] and over 70 businesses”

Referring to what could have led to the report, Ibileke noted that there was a commercial dispute between OTI, ALBON and PTONA, which had been operating at OTI for four consecutive years and need not draw media attention, “because we have an internal dispute resolution mechanism solely set up to resolve such an issue. This kind of disagreement is not uncommon in an environment of multiple operators and the prevalent escalating prices in Nigeria.”

The management explained that the increase in operating expenses and the cost of its critical inputs influenced its decision to review its service charge upward.

“For instance, the price of diesel has risen by 214 per cent from N350 to N1,100; petrol by 255 per cent from N169 to N600 and refuse disposal by 130 per cent from N650,000 to N1.5 million.

“All these operating expenses do not include the costs of facility management (cleaning, cleaning materials, security, among others.), repairs and maintenance costs and other sundry, which have astronomically gone up in recent times,” it stated.

Ibileke. however, stated that discussions has commenced with all transport operators at the interchange on the need to increase charges due to the escalating costs of inputs and increased operational expenses and the need to ensure that the interchange is able to continue to render transportation and commercial services to the commuting public in a safe and secure environment.

He said some operators under PTONA have had the discussions and negotiations concluded and have resumed transport operations at the OTI. “There are other negotiations ongoing with all business partners at the interchange to ensure sustainable and continued operations.

“It is however surprising to read a report of the looming crisis at the interchange without finding out what happened from the management of the facility. There was never a looming crisis at the interchange, and neither is there any crisis currently. The report, thus, is nothing, but a misrepresentation of facts.

“Again, we state that what happened at the interchange is purely a commercial issue, which will be resolved with continued discussions and negotiations with all parties concerned,” the management stated.