Institutionalizing Transport Fare Insurance Scheme (TFIS) for Optimizing Urban Passenger Transport Efficiency in Abuja, Nigeria
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Abstract: Urban mobility in Abuja continues to suffer from prolonged passenger waiting times and unpredictable departure schedules due to the dominance of occupancy-based dispatch systems in the informal transport sector. These inefficiencies impose high opportunity costs on commuters, create unstable revenue patterns for drivers, and limit the development of reliable urban transport services. This study introduces the Transport Fare Insurance Scheme (TFIS) as a financial–institutional framework designed to redistribute demand risk, enable timely departures, and stabilize driver income. Using a mixed-methods approach combining commuter surveys, operational cost assessments, simulation modeling, and stakeholder interviews, the research evaluates how fare-insurance mechanisms can reshape departure behavior and improve service reliability. The simulation results indicate substantial reductions in average waiting time and greater income predictability for operators under insured-departure scenarios. Behavioral and institutional insights further reveal that policy coordination, union sensitization, and digital fare governance are essential conditions for successful TFIS adoption. Although the simulation relies on model-based parameters requiring future pilot validation, the findings demonstrate that TFIS offers a practical, scalable pathway for enhancing transport efficiency in Abuja and similar Sub-Saharan African cities. The study contributes to emerging research on integrating financial instruments into public transport operations and aligns with global development targets under SDG 9 (Industry, Innovation and Infrastructure) and SDG 11 (Sustainable Cities and Communities).
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