President Bola Tinubu has directed state governments to ensure that savings from cheaper Compressed Natural Gas (CNG)-powered transportation are reflected in lower fares for Nigerians from October 1.
Tinubu gave the directive in a statement on Saturday while providing an update on the National Affordable CNG Transit Programme, launched following his August 27 meeting with the 36 state governors.
According to the President, the goal agreed with the governors is for Nigerians to begin experiencing “measurable reductions in transportation costs” from October 1.
“I encourage every state to maintain the momentum towards October 1. Work with transport unions and commercial operators. Support conversion and fleet deployment.
“Facilitate the infrastructure required. Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he said.
Tinubu said several states were already recording significant reductions in transport costs through CNG-powered and electric buses.
In Borno State, he said CNG and electric public transport services charge between N50 and N100 on routes where commercial operators charge as much as N300 to N600.
In Kaduna, 100 CNG-powered buses have provided free transportation on major routes, carrying about 3.2 million passengers during their first year of operation and saving commuters more than N3.5 billion, according to the President.
He also cited Oyo State, where CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial deployment.
Alternative-energy transport services in Adamawa, he said, had cut fares by up to 50 per cent, from N8,000 to N4,000, while 100 CNG buses in Enugu reduced the Enugu-Nsukka fare from N2,500 to N1,500.
In Plateau, government-supported buses reportedly carry about 13,000 commuters daily for N200, compared with commercial fares of more than N500.
Tinubu also highlighted CNG-converted commercial vehicles operating on several Abuja routes through a partnership with the National Union of Road Transport Workers (NURTW), which he said had resulted in a 40 per cent reduction in fares.
Under the programme, the Area 1-Gwagwalada fare reportedly dropped from N1,500 to N900, Nyanya from N700 to N420, and Wuse from N400 to N240.
On the Suleja-Abuja route in Niger State, passengers now pay about N550 compared with N800 previously, 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.
The President said the Federal Government would continue supporting states in expanding the programme, particularly as disruptions in global energy supplies put pressure on petrol and diesel prices and, consequently, transportation costs.
Tinubu said Nigeria’s abundant gas resources provided an opportunity to reduce the country’s exposure to international energy price shocks by expanding alternative-energy transportation.
He disclosed that more than 120,000 vehicles had been converted to CNG over the past three years, with more than 400 certified conversion centres and over 90 CNG refuelling stations now operating across the country.
He also highlighted developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom states.
According to him, Edo has 50 CNG buses in active service, while Kano has converted more than 1,000 commercial vehicles. Delta, Kwara and Lagos are expanding CNG-supported transport services, while Akwa Ibom has taken delivery of 50 CNG buses ahead of commercial operations.
Tinubu said the Federal Government would continue investing in CNG infrastructure and conversion capacity while encouraging participation from transport operators, manufacturers and private investors.
He rejected calls for a return to the petrol subsidy regime, arguing that it had placed a heavy burden on public finances and exposed the economy to fluctuations in international oil prices.
“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.
“We must accelerate the cheaper alternatives we have been building at home,” he said.
Tinubu added that the government’s focus was now on expanding the programme so that more Nigerians could benefit from lower transportation costs.
“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings.
“Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day,” he said.
