Oyo Government Spends ₦2.1bn to Subsidise Transport for Nearly 6 Million Residents

The Oyo State Government has reportedly invested ₦2.1 billion in subsidising transport fares for 5.88 million residents between January and July 2025, as part of efforts to cushion the impact of economic hardship across the state.

According to a recent press briefing at the Governor’s Office, the Chairman and Sole Administrator of Pacesetter Transport Services (PTS), Dr. Ibrahim Dikko, confirmed the figures, stating that the intervention falls under the Sustainable Action for Economic Recovery (SAfER) scheme introduced by Governor Seyi Makinde. The programme offers discounted transport fares for students, pensioners, senior citizens, persons with disabilities, and the general public using the government-owned Pacesetter Buses on both intra-city and inter-city routes.

Dikko revealed that from August 2023—when SAfER was launched—until now, the administration has disbursed over ₦2.15 billion to reduce commuting costs across major routes such as Ibadan-Iseyin-Saki, Ibadan-Oyo-Ogbomoso, and Ibadan-Ibarapa. He explained that ₦541 million was spent on a 50% transport fare reduction in 2023 alone, with another ₦924 million committed throughout 2024, during which nearly 10 million passengers were served.

So far in 2025, ₦686 million has been allocated toward the ongoing subsidy. Dikko emphasized that Governor Makinde’s intervention has brought about a massive turnaround in the once-moribund PTS, which had faced years of operational decline before his administration took over.

Since his appointment in July 2023, the PTS chairman said he has overseen key reforms, including an increase in operational vehicles and routes, settlement of longstanding tax liabilities, enhancement of staff welfare, and the introduction of a cashless payment system that has drastically improved revenue generation—from ₦200,000 to over ₦1.5 million daily. The new digital ticketing platform has already attracted over 262,000 subscribers.

Additional innovations under his tenure include the deployment of CCTV cameras, vehicle trackers, and speed monitors across the bus fleet to enhance passenger safety and accountability. Presently, PTS runs 39 intra-city routes using 55 buses and five inter-city routes with 10 buses. The company revived 30 buses for Ibadan operations and another 16 for longer routes under the SAfER initiative.

Dikko further disclosed that the state has taken delivery of 30 Compressed Natural Gas (CNG) buses from the Federal Government. These vehicles have been deployed to new interstate routes, with Ibadan-Abuja services already operational and Lagos-Abuja trips set to begin shortly. Additional routes, including Ibadan-Kwara, will follow.

Beyond passenger services, PTS has expanded into logistics and advertising, offering courier services and allowing businesses to brand buses. These initiatives aim to generate more revenue and lessen dependence on state subsidies.

Addressing past controversies, Dikko attributed internal resistance and false allegations of financial impropriety to his crackdown on corruption and leakages within the system. He insisted that all PTS revenues are now fully digitized and traceable, leaving no room for fund misappropriation.

Despite challenges, he maintained that the agency has cleared a ₦150 million tax backlog, improved worker morale through allowances and backlog payments, and continues to operate as a self-sustaining, revenue-generating entity for the state.

He was accompanied at the briefing by Director of Finance and Accounts, Mr. Aremu Taofeek, and Director of Business Planning and Financial Analysis, Mr. Mukhtar Azeez.