The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said the inflation rate in Nigeria is largely driven by the cost of transport.

The country has seen an increase in transport costs in recent months largely on the back of the hikes in the pump price of petrol, used by many commercial transporters to power their vehicles.

In what is the latest in a series of petrol price hikes since July, fuel marketers appear set to raise the pump price of the product this month following the increase in the ex-depot price.

zainab, who spoke on Friday at a virtual consultation and stakeholder engagement to discuss the economic and fiscal policy drivers underpinning the Finance Bill 2020, said the draft bill sought to reduce transportation cost in the country.

The average transport fare paid by commuters for bus journeys within a city increased by 12.70 per cent month-on-month and 48.02 per cent year-on-year to N278.88 in August, the latest data from the National Bureau of Statistics showed.