President Bola Tinubu has directed the 36 state governments to accelerate the deployment of Compressed Natural Gas (CNG) and other alternative-energy transport initiatives to reduce transportation costs for Nigerians from October 1.
Tinubu gave the directive in a statement on Saturday, saying the Federal Government would support states to expand CNG infrastructure, vehicle conversion and affordable public transport services.
The President said the decision followed his August 27 meeting with the governors, where they agreed on the objective of ensuring that more Nigerians begin to experience measurable reductions in transportation costs from October 1.
He said an implementation committee for the National Affordable CNG Transit Programme had subsequently been established under the auspices of the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.
According to Tinubu, the committee, PI-CNG and EV, state governments and other stakeholders are already working to identify priority transport corridors, determine appropriate interventions and establish the infrastructure needed to deliver cheaper transportation.
The President said the urgency of the programme had increased amid disruptions to global energy supplies and rising petrol and diesel prices.
He cited several states where CNG and alternative-energy transport schemes have already reduced fares.
In Borno, he said, CNG-powered and electric public transport services carry commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
Tinubu said Kaduna’s 100 CNG-powered buses provide free transportation on major routes and carried about 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion in transport costs.
In Oyo, CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment, while alternative-energy transport services in Adamawa cut fares by as much as 50 per cent, from ₦8,000 to ₦4,000.
The President also said 100 CNG buses deployed in Enugu had reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
In Plateau, government-supported buses reportedly carry about 13,000 commuters daily at ₦200, compared with more than ₦500 charged by commercial operators.
Tinubu said the Federal Government’s partnership with the National Union of Road Transport Workers (NURTW) had also resulted in a 40 per cent reduction in fares on several Abuja commuter routes using CNG-converted commercial vehicles.
He cited Area 1-Gwagwalada, where fares had fallen from ₦1,500 to ₦900; Nyanya, from ₦700 to ₦420; and Wuse, from ₦400 to ₦240.
In Niger State, he said, passengers on the Suleja-Abuja route now pay ₦550 compared with about ₦800, while Abia State has deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
He commended governors and state governments that had moved quickly but urged others to intensify their efforts ahead of October 1.
The President said Nigeria’s exposure to fluctuations in international energy markets could be reduced by leveraging its abundant natural gas resources.
“That is what we have been doing,” he said, noting that his administration had spent the last three years developing a CNG transportation ecosystem across the country.
According to Tinubu, more than 120,000 vehicles have now been converted to CNG, while Nigeria has over 400 certified conversion centres and more than 90 CNG refuelling stations.
He said the numbers were continuing to increase.
Tinubu also rejected a return to petrol subsidy, saying the country should instead accelerate the development of cheaper domestic energy alternatives.
“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumed trillions of naira and left our economy exposed to every movement in international oil prices, as some have suggested,” he said.
The President said several states were expanding their CNG programmes.
He listed Edo, which has 50 CNG buses in active service; Kano, which has converted more than 1,000 commercial vehicles; and Delta, Kwara and Lagos, which are expanding CNG-supported transport services.
Akwa Ibom, he added, had taken delivery of 50 CNG buses ahead of commercial operations.
Tinubu urged all states to work closely with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate the infrastructure needed to expand alternative-energy transportation.
He particularly stressed the need for states to ensure that savings from cheaper energy are reflected in lower fares for commuters.
“The Federal Government will continue to support the scaling of CNG infrastructure and access, expand conversion capacity, and create the enabling environment for states, transport operators, manufacturers and private investors to participate,” he said.
“Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day.”