Digital shift gives Nigerian passengers more transport choice

Ten years ago, choosing how to travel in Nigeria often meant taking a bus at the nearest park, hailing an available bus, or sticking with a familiar transport operator, but today, it’s no longer a first choice.

With a few taps, passengers can compare fares, track vehicles, read reviews, make cashless payments, and switch between transport providers before their journey.

With ride-hailing services, online ticketing, in-app mapping that tracks every street and corner to estimate arrival times and fares upfront, cashless payments, and customer feedback, they can seamlessly book trips, check in, and board using only a smartphone or laptop from any location.

“Ten years ago, getting around Lagos meant standing at a bus stop hoping for a vehicle that wasn’t falling apart, or paying a premium for a cab whose fare had to be negotiated,” Akande Adedayo, specialist solutions at 54pay Technologies, said.

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Adedayo noted that digital tools have helped bridge that gap by connecting a rider seeking affordable trips with drivers looking to earn from their private car, all through a platform that handles payment and completes the transaction once the trip ends.

“You know the fare before you get in, you know roughly when the car will arrive, and you have a record of the trip if something goes wrong,” he said.

Oluwasegun Akintoye, founder of Profitable Logistics, said digital tools are gradually giving passengers more bargaining power, allowing them to compare alternatives almost instantly and publicly share their experiences through digital platforms.

“Reviews, ratings, social media and customer feedback can significantly influence an operator’s reputation, forcing operators to become more accountable and customer-focused,” Akintoye said.

According to a report by Research and Markets, Nigeria’s urban mobility and ride-hailing market is valued at $1.5 billion, driven by urbanisation, smartphone penetration, and demand for convenient transport in cities like Lagos and Abuja.

It stated that the increasing adoption of mobile technology and the growing need for efficient urban transport solutions have further propelled the popularity of transport services.

“The Nigerian urban mobility landscape is evolving, with a growing preference for convenient transportation options. This demand is fueled by the need for time-efficient travel solutions, especially in congested urban areas,” the report noted.

Digital tools are giving passengers more information and choice before, during, and after a journey, forcing operators to compete not only on fares and fleet size, but on convenience, reliability, transparency, and the overall experience they offer.

Moving people from one point to another is no longer enough; operators now compete every day to earn each trip by investing in smarter fleets to meet changing passenger expectations.

ABC Transport Plc has commenced a group-wide fleet renewal programme with the rollout of 2026-model luxury coaches, equipped with individual USB charging ports for every passenger, high-definition CCTV surveillance systems, GPS-enabled real-time vehicle tracking, and electronically controlled speed limiters.

These technologies give passengers greater connectivity and safety while traveling, while providing the operator with tools to monitor vehicles and improve fleet management.

In Lagos, the Lagos Metropolitan Area Transport Authority (LAMATA) is also leveraging technology to make public transportation more connected, using tools such as cashless ticketing, fleet monitoring, and passenger information systems to improve how commuters access and experience transport services in the state.

Obiora Madu, director general, African Centre for Supply Chain (ACSC), said that over the past decade, digital technology has fundamentally shifted transport in Nigeria from a provider-driven industry to a customer-driven one, noting that digital platforms have empowered customers with information and choice.

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Madu added that passengers are no longer simply buying transportation; they are buying predictability, convenience, and confidence, and operators that fail to deliver these digital experiences risk losing relevance.

“The transport experience now begins long before boarding a vehicle it starts on a smartphone.

“Technology-enabled transport providers have demonstrated that customer experience can be a significant competitive advantage. Traditional operators are increasingly investing in digital platforms simply to remain competitive.

This shift is not limited to transportation alone; it has also changed how vehicles are acquired. For prospective buyers, the traditional journey of visiting multiple dealer lots, checking available vehicles in person, and negotiating prices is increasingly being supplemented by digital platforms.

Buyers can now search vehicle listings online, compare models and prices, contact sellers and, in some cases, initiate the purchase process without first visiting a dealership.

For dealers, the competition is no longer limited to physical showrooms, but to their digital visibility, responsiveness, and ability to provide reliable information to attract customers.

According to a report from Jiji, an online marketplace, soaring vehicle prices in Nigeria are forcing a dramatic shift in the country’s automotive retail industry, as dealers are abandoning traditional car lots, turning to digital marketplaces to survive rising inventory costs.

The report showed that holding expensive inventory on large physical car lots has become financially risky for many dealers.

“Those who embrace this transformation early will enjoy lower operating costs, improved customer loyalty, stronger resilience, and greater competitiveness. Those who delay may find themselves overtaken by more agile, technology-enabled competitors,” Madu said.

Experts, however, noted that the pace of this digital shift could be constrained by the realities of Nigeria’s operating environment, such as unreliable power and internet connectivity, high technology costs, limited digital skills, and resistance to organisational change.

Akintoye said transport operators operate in a cost-sensitive environment, so they need to clearly understand how an investment in technology will reduce costs, improve asset utilisation, increase revenue, or improve customer retention.

“The future of Nigeria’s transport sector will not simply belong to companies with the largest fleets. It will increasingly belong to companies that can combine people, physical assets, technology and data to deliver safer, more reliable, efficient and customer-centric transportation,” he said.

Madu added that the organisations that thrive will be those that see technology not as an expense, but as the foundation of a smarter, safer, more efficient, and customer-focused transport ecosystem.