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Business & Economy

How costs of passport, drivers’ licence, data shot up in 2 years

The FrontierThe FrontierMay 20, 2025 1048 Minutes read0

•Drivers’ licence, number plate

Nigerians have continued to express frustration over the rising cost of living since President Bola Ahmed Tinubu assumed office.

Many lament that the prices of basic commodities and essential services have doubled—or in some cases, tripled—without any sign of relief in sight, reports Daily Trust.

In the last one year, different federal agencies have increased the costs of obtaining essential government-issued documents, including international passports, driver’s licences, vehicle number plates and corrections to National Identification Number (NIN) data.

These increments are often justified by government agencies as “adjustments to reflect operational costs.”

These developments, many say, are placing an unbearable burden on the average citizen, already struggling with stagnant incomes, unemployment, and inflation.

Despite the increased fees, applicants also face long wait times and bureaucracy, deepening frustration among citizens who rely on these documents for travel, banking, and access to digital services.

Obtaining essential documents such as international passports and driver’s licences has become notoriously difficult, with processing times often stretching into weeks or even months despite full payment.

Many Nigerians, who lamented the high cost in obtaining these documents, alleged that some officials exploit the delays to run rackets, prioritising issuance for the highest bidders.

Revised fees for services

One of the most pressing concerns is the skyrocketing price of petrol. In May 2023, the price of petrol stood at N195 per litre.

By October 2024, it had surged to N1,030, marking an increase of about 488 per cent.

Although the price currently hovers around N910 to N930 at NNPC retail outlets, depending on the location, the spike has had a cascading effect on transportation, food prices, and other essential goods and services across the country.

Equally alarming is the hike in electricity tariffs. In April 2024, the Nigerian Electricity Regulatory Commission (NERC) approved a 240 per cent increase for Band A customers.

This saw electricity rates shoot up from N68 per kilowatt-hour to N225 per kilowatt-hour. The government argues that the increment is necessary to ensure improved service delivery and sustainability in the power sector.

Similarly, the telecommunications services have also become more expensive.

The Nigerian Communications Commission (NCC) approved a 50 per cent increase in tariffs following requests from telecom operators who cited rising operational costs.

The average cost of calls rose from N11 to N16.5 per minute, while the price of 1GB of data jumped from N287.50 to N431.25. SMS charges were also increased from N4 to N6.

Presently, the minimum cost for a monthly data subscription across major network providers such as MTN, Airtel, Glo, and 9mobile is N1,000, a development that has hit students, small business owners, and digital entrepreneurs particularly hard.

In the transport sector, the Federal Road Safety Corps (FRSC), in collaboration with the Joint Tax Board, recently announced a revised fee structure for driver’s licenses and vehicle number plates, effective from June 8, 2025.

The standard private and commercial vehicle number plates now cost N30,000, up from the previous N18,750. Fancy number plates now cost N400,000, double the old price of N200,000.

Articulated vehicle plates have increased from N30,000 to N90,000, while motorcycle plates rose from N5,000 to N12,000.

The cost of obtaining a standard three-year driver’s license now stands at N15,000, up from N10,000, while the five-year option increased from N15,000 to N21,000.

Similarly, obtaining or modifying a National Identity Number (NIN) has become more expensive. The National Identity Management Commission (NIMC) increased the fee for correcting date of birth information on its database from N16,340 to N28,574, a 75 per cent rise.

Other forms of data modification, such as changes to names or addresses, now attract a fee of N2,000 per transaction, up from N1,522. Reissuance of the NIN slip now costs N600, up from N500.

NIMC says the price review, coming after over a decade, is meant to align with current operational costs and industry standards.

The Nigerian Immigration Service also reviewed the cost of international passports upward. The 32-page booklet with a five-year validity now costs N50,000, up from N35,000, while the 64-page booklet with a ten-year validity rose from N70,000 to N100,000.

In an official statement, the Immigration Service said the adjustment was necessary to maintain the quality and integrity of the Nigerian passport.

This means that Nigerians have witnessed increases in the cost of essential services and commodities, with petrol prices soaring by 488%, electricity tariffs up by 240%, telecom charges rising by 50%, vehicle number plate fees climbing as high as 200%, NIN modification costs increasing by up to 75%, and international passport fees jumping by over 42%, a wave of hikes that has deepened the financial strain on ordinary citizens nationwide.

The government insists that these changes are part of broader economic reforms aimed at reducing subsidies and enhancing service efficiency.

But citizens said the rising costs of essential services are coming at a time when many Nigerian workers are still struggling to earn a living wage.

Nigerians lament soaring prices of commodities, services

Speaking to our correspondent, citizens from various walks of life described how the worsening economic conditions have severely impacted their ability to afford daily necessities and essential services.

Mohammed Auwal, a postgraduate student, said the prices of almost every commodity have surged and become unaffordable.

“Whenever we think of President Tinubu, the first thing that comes to mind is the cost of commodities and services. Many things have become unaffordable, from school fees to food and other basic needs.

“As a student, the increase in school fees has affected me badly. I now have to go the extra mile just to raise money to pay my fees,” he said.

Josephine Joseph, a hospitality manager, said the situation has forced her to change her daily lifestyle.

“Prices of commodities choke. You can’t even compare this to previous governments. There are many things I can no longer afford. You can’t even get N1,000 meat. The least you can get in my area is N1,500. Pepper starts from N500,” she said.

Halima Abba Waziri noted that the continuous increase in food prices is affecting households nationwide.

“People are struggling to afford basic necessities. A bag of rice or even a pack of spaghetti is now a luxury. The money I used to buy one pack of semovita can buy four packs back then. The economy is not encouraging, and there is no hope of change anytime soon,” she said.

Zainab Yetunde said that while the cost of living keeps rising, salaries have remained the same.

“The prices keep increasing despite the implementation of the minimum wage. It’s not easy. I now save money before making purchases and have to prioritise everything. I no longer have any savings,” she said.

Fatimah Sagir, a mother of school-age children, expressed her distress over the rising cost of living, saying she can no longer afford essential items for her children, let alone deal with the cost of services.

“I used to buy data regularly, but I’ve had to stop because of the cost. Everything has gone up; we simply can’t keep up anymore,” she lamented.

“Since the present administration came in, there have been a lot of changes in almost all areas of economic and social life. Prices have increased by almost 40 per cent,” said Okeke Chima.

“The cost of renewing car license has gone up, cost of passport. I cannot afford anything anymore,” he said.

Tinuke Abiola, from Osun State, said her drivers’ license has expired and she cannot renew it because she does not have the money to do so.

“I have a lot of expenses I am dealing with. I cannot add this to my budget for now,” she said.

Adamu Abdullahi from Niger, expressed concern that in the two years of this administration, all Nigerians have witnessed is a hike in essential services. He lamented that there has been no respite from any quarters.

“When are we going to start reaping the benefits of these reforms”, he asked.

They called on the government to urgently address the rising cost of services, as the economic hardship continues to take a toll on the population, particularly low-income earners.

New minimum wage unrealistic – Expert

Dr. Yusha’u Aliyu, a member of the Institute of Professional Economists and Policy Management, attributes the rising cost of basic services in Nigeria to a combination of inflationary trends and a series of harsh economic reforms introduced by the Tinubu administration since 2023.

He said, “The economy is suffering from stagflation, an unusual combination of high unemployment and high inflation, which has eroded the purchasing power of individuals and affected overall living standards.”

Dr. Aliyu noted that the current economic reality in Nigeria has rendered workers’ wages largely unrealistic and inadequate. He argues that the combination of steep price hikes in essential services and aggressive government reforms has significantly eroded the value of wages, even with the recent increase in the national minimum wage.

“In theory, increasing the wage rate should improve workers’ consumption capacity, but in Nigeria’s current economic climate, that logic doesn’t hold,” Dr. Aliyu stated, noting that many workers still earn the old N30,000 minimum wage, while even those in federal institutions who receive the new N70,000 wage find it hard to keep up with daily expenses.

“The cost of food, electricity, transportation, telecommunications, and even basic identification services like passport renewal or NIN modification has shot up dramatically”, he noted.

Dr. Aliyu emphasised that the wage increment has not translated into improved living conditions or consumption patterns. “What we see is that despite the wage increase, workers are consuming fewer goods and services than before. Their purchasing power is shrinking because inflation continues to rise faster than income,” he said.

While defending the rationale behind some of the policy decisions, Dr. Aliyu emphasised that the timing and simultaneity of the reforms have deepened economic distress. “Policies like the removal of fuel subsidies, floating of the naira, and a hike in the monetary policy rate were implemented almost simultaneously, leading to a cascading effect on the prices of commodities and services,” he explained. He likened this to planting and harvesting crops out of season, suggesting that the natural sequencing of policies was ignored.

He noted that the removal of the PMS subsidy and the depreciation of the naira drastically raised transport and logistics costs, which in turn inflated prices across the board, from passports and driver’s licenses to telecom tariffs and electricity.

“The reforms were economically necessary, but their clustered implementation without corresponding buffers for vulnerable populations has made them socially unfair,” he added.

He said that although the policies may yield long-term benefits, their short-term consequences are severe. For Nigeria to reverse its inflationary trend, Dr. Aliyu recommended ramping up local refining capacity, stabilising the naira, halting further hikes in borrowing costs, among others.

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