Optimization of Vehicle Fleet Replacement Decisions and Fuel Cost Dynamics in the Nigerian Transport Sector

Titilope Caroline Oyinade
Additional contact information
Titilope Caroline Oyinade: Department of Business Administration, University of Benin, Benin City

International Journal of Research and Innovation in Applied Science, 2025, vol. 10, issue 4, 1148-1180

Abstract: Any country’s economic growth and social mobility are largely dependent on the transportation industry (Inegbedion & Aghedo, 2018). In Nigeria, a country with a vast and diverse population, efficient transportation is not only essential for connecting people and goods but also for fostering economic growth and prosperity. The Nigerian transport sector has historically been supported by fuel subsidies, which have alleviated the financial burden on both consumers and businesses (Ismail, Hezekiah & Bilikisu, 2014). However, recent policy changes, including the removal of fuel subsidies, have introduced new challenges and considerations for fleet managers and stakeholders in the transport industry. The primary goal of replacement policy is to determine an item’s economic life, as retaining an item longer than necessary may result in a decline in the profit generated by the item’s use. Making the decision to replace the equipment at the appropriate stage of its useful life will maximize the profit from the equipment (Hossam, Ahmed, & Ahmed, 2023). The transition from subsidized fuel to market-based fuel prices has brought about significant shifts in operating costs for transportation companies, necessitating a re-evaluation of their fleet management strategies (Ismail et al. 2014). The decision to replace aging vehicles involves a complex interplay of economic, operational, and environmental factors, all of which must be balanced to ensure the sustainability and efficiency of transport operations. In light of this, it is in everyone’s best interest from a practical standpoint to justify the best terms for equipment renewal. (Lapkina & Malaksiano, 2023).

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijrias/ ... ssue-4/1148-1180.pdf (application/pdf)
https://rsisinternational.org/journals/ijrias/arti ... an-transport-sector/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bjf:journl:v:10:y:2025:i:4:p:1148-1180

Access Statistics for this article

International Journal of Research and Innovation in Applied Science is currently edited by Dr. Renu Malsaria

More articles in International Journal of Research and Innovation in Applied Science from International Journal of Research and Innovation in Applied Science (IJRIAS)
Bibliographic data for series maintained by Dr. Renu Malsaria ().