Bus fares rise 39% as Okada costs jump 52% - bus fares
Bus fares rise 39% as Okada costs jump 52%

Nigerian transportation costs have surged dramatically over the last year. Bus fares increased by nearly 39 percent and motorcycle taxi fees jumped more than 52 percent. According to data from the National Bureau of Statistics, the average cost for a bus journey within cities rose to N1,431.25 in May 2026, up from N1,032.46 in the previous year. Okada fares followed a similar trajectory, climbing to N1,072.51, a 52.45 percent increase. These figures highlight the growing financial burden on logistics operations across the country.

The rising expense of last-mile movement is forcing businesses to rethink their delivery strategies. For online merchants, higher transportation costs can quickly erode profit margins on smaller orders. Nigerian technology company ChamsAccess is addressing this challenge with its MarketRide platform. The company connects consumers, merchants, and riders through a digital ecosystem that includes MarketRide User, MarketRide Merchant, and MarketRide Go.

The logistics arm, MarketRide Go, utilizes a multi-order delivery model. This approach allows riders to complete several deliveries within the same geographic area during a single trip. By grouping orders, the system aims to reduce unnecessary mileage and fuel consumption. This model shifts the focus from simply adding more riders to improving the efficiency of the existing delivery capacity. For riders, the opportunity to increase earnings without a proportional rise in fuel consumption offers a distinct advantage.

The economics of multi-order delivery depend heavily on population density. The platform requires sufficient numbers of merchants, customers, and riders operating in the same locations to create efficient routes. A large connected population does not automatically translate into an efficient delivery network. The company is entering a market where digital connectivity is already broad enough to support large-scale online commerce, with 154.35 million active mobile internet subscriptions recorded in April 2026.

ChamsAccess is betting that coordination is the key to surviving the current cost environment. For platforms like MarketRide, success will ultimately depend on whether that coordination can translate into lower costs for merchants and riders while maintaining a sustainable business model. The platform includes GPS tracking, OTP-based delivery verification, rider training, branded equipment, and prompt payment settlement.

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On the merchant side, MarketRide Merchant provides tools for order management, automated rider dispatch, sales monitoring, and customer insights. The company charges commissions ranging from five percent to 15 percent, depending on the service and category. ChamsAccess states that this compares with platforms where commissions and related charges can exceed 30 percent, though a broader market comparison would be required to establish how its pricing compares across Nigeria’s delivery industry.

The pressure created by transport costs extends beyond delivery companies. Higher fares can increase the final price consumers pay for products purchased online, particularly when merchants are unable or unwilling to absorb the additional logistics expense. This creates a potential feedback loop in which higher delivery costs discourage purchases, while lower order volumes make it harder for delivery networks to achieve the density needed to reduce costs.

Nigerian online businesses are now facing a different set of challenges than they did a few years ago. The issue has become less about whether delivery is available and more about whether it can remain affordable as transportation costs rise. Olayemi Odufeso, chief executive officer of ChamsAccess, said MarketRide was built to connect entrepreneurs with consumers while addressing inefficiencies in digital commerce logistics.

We built MarketRide to close the gap between ambitious entrepreneurs and consumers ready to adopt digital commerce. This solution is not limited to Lagos, but applies to every urban centre where inefficient logistics is holding back economic growth. The platform helps merchants manage orders while ensuring riders receive fair compensation for their service. ChamsAccess is part of a broader movement to modernize the Nigerian economy.