President Bola Tinubu has directed states to accelerate the implementation of the National Affordable CNG Transit Programme to ensure that more Nigerians begin to benefit from lower transportation costs from October 1.
Tinubu gave the directive in a statement on Saturday, saying the Federal Government would support states in expanding CNG-powered transportation and ensuring that savings from cheaper energy translate into reduced fares for commuters.
The President said he met with the governors of the 36 states on August 27, where they agreed on the objective of achieving measurable reductions in transportation costs from October 1.
He said an implementation committee 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 & EV, state governments and other stakeholders were already working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.
He said the need to accelerate the programme had become more urgent amid renewed disruptions to global energy supplies, which were putting pressure on petrol and diesel prices and increasing transportation costs worldwide.
The President cited several examples across the country where CNG and alternative-energy transportation had already reduced fares.
In Borno, he said, CNG-powered and electric public transport services were moving commuters for between ₦50 and ₦100 on routes where commercial operators charged between ₦300 and ₦600.
In Kaduna, 100 CNG-powered buses were providing free transportation on major routes. Tinubu said the buses carried about 3.2 million passengers in their first year of operation, saving commuters more than ₦3.5 billion in transport costs.
He also said the deployment of CNG buses by Pacesetter Transport in Oyo State reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.
In Adamawa, alternative-energy transit services had reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000, while in Enugu, the deployment of 100 CNG buses reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
Tinubu added that government-supported buses in Plateau carry about 13,000 commuters daily at ₦200, compared with commercial fares of more than ₦500.
Under the Federal Government’s partnership with the National Union of Road Transport Workers, he said passengers using CNG-converted commercial vehicles on several Abuja commuter routes were also benefiting from a 40 per cent fare reduction.
He cited the Area 1-Gwagwalada route, where fares had fallen from ₦1,500 to ₦900; Nyanya, from ₦700 to ₦420; and Wuse, from ₦400 to ₦240.
In Niger State, passengers on the Suleja-Abuja route were paying ₦550 compared with about ₦800, while Abia State had deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” the President said.
Tinubu commended state governments that had moved quickly but urged them to do more to expand the programme.
“Disruptions to global energy supplies are once again pressuring petrol and diesel prices and increasing transportation costs worldwide,” he said.
“Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure. That is what we have been doing.”
The President said his administration had, over the past three years, invested in developing a CNG transportation ecosystem across the country.
He said more than 120,000 vehicles had been converted, while Nigeria now had over 400 certified conversion centres and more than 90 CNG refuelling stations, with the numbers increasing.
Tinubu also rejected calls to return to the petrol subsidy regime, describing it as a costly system that consumed trillions of naira and left Nigeria vulnerable to movements 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,” he said.
“We must accelerate the cheaper alternatives we have been building at home.”
The President noted that Edo State already had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles and was expanding its conversion and refuelling network.
He said Delta, Kwara and Lagos were expanding CNG-supported transport services, while Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.
Tinubu urged all states to sustain momentum towards the October 1 target by working with transport unions and commercial operators, supporting vehicle conversions and fleet deployment, and facilitating the infrastructure needed for expanded CNG transportation.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he said.
The President assured that the Federal Government would continue to support the expansion of CNG infrastructure and access, increase conversion capacity and create an enabling environment for states, transport operators, manufacturers and private investors.
“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,” Tinubu said.