Hardship: Increase in Driver’s Licence, Number Plate Ill-timed

driver's licence

The recent approval of new rates for driver’s licences and vehicle number plates by the Joint Tax Board (JTB) will severely impact low-income Nigerians, especially with the present state of economic hardship.

Development Diaries reports that the JTB announced the adjustment, effective from 01 November, 2024, as part of efforts to enhance the quality and security features of these identification items, aligning with international best practices.

This adjustment will definitely affect low-income earners, particularly those working in the informal transportation sector.

Motorcyclists, tricycle operators, and commercial drivers, who form a large part of the transportation industry, will now be required to pay higher fees for both licences and number plates.

For example, a three-year driver’s licence for motorcycles will now cost N7,000, while the five-year licence is set at N11,000, alongside a standard private or commercial vehicle number plate at a minimum of N30,000. These increased costs will likely weigh heavily on individuals who rely on small margins to make a living.

For many in the informal transportation sector, such price hikes come at a time when they are already struggling with rising fuel costs and inflation.

With fuel prices skyrocketing due to subsidy removal and inflation driving up the cost of living, these additional financial burdens could make it even harder for them to maintain their livelihoods.

The majority of informal transport workers do not have access to substantial savings or steady incomes, making it difficult to absorb these additional costs without experiencing financial strain.

Also, the high cost of fancy number plates, which now reach up to N400,000, and the dealer motor vehicle number plate priced at N100,000, place a disproportionate financial burden on those with fewer means.

Even with the government’s standard motorcycle and vehicle number plates revised to more moderate rates, such as N20,000 for motorcycles and N80,000 for vehicles, these figures represent a significant portion of the earnings of low-income Nigerians, pushing them further into economic hardship.

Ultimately, these price hikes highlight the growing inequality in access to essential services, with lower-income Nigerians bearing the brunt of policy changes.

As many informal sector workers are already grappling with the broader economic challenges in Nigeria, the additional costs for driver’s licences and vehicle number plates could further undermine their financial security and ability to provide affordable transportation services to the public.

In light of all these, Development Diaries calls on the JTB to offer subsidies or installment payment plans for informal workers and low-income individuals who rely on vehicles for their livelihood.

Photo source: Nigerian number plate

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