ABUJA — President Bola Ahmed Tinubu has set October 1 as the target date for the nationwide implementation of measures aimed at reducing transportation fares through the expanded use of Compressed Natural Gas (CNG) and electric-powered vehicles.
The President directed the 36 state governments to accelerate their ongoing CNG and alternative-energy transportation programmes, insisting that savings generated from cheaper energy sources must ultimately translate into lower fares for millions of Nigerian commuters.
Tinubu disclosed this in a statement following his August 27 meeting with the 36 state governors, during which they agreed that Nigerians should begin to experience measurable reductions in transportation costs from October.
As part of efforts to achieve the target, an implementation committee for the National Affordable CNG Transit Programme was established under the auspices of the Nigeria Governors’ Forum.
The committee is chaired by Kwara State Governor AbdulRahman AbdulRazaq and is working with the Presidential Initiative on Compressed Natural Gas (PI-CNG), electric vehicle stakeholders, state governments and other relevant partners.
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According to the President, the stakeholders have commenced the process of identifying priority transportation corridors, determining appropriate interventions and putting the necessary arrangements in place to expand affordable alternative-energy transportation across the country.
Global Energy Pressure
Tinubu urged the states to move faster, particularly in view of renewed disruptions to global energy supplies that have continued to put pressure on petrol and diesel prices and, consequently, transportation costs.
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The President said Nigeria could not control developments in the international energy market but could reduce its vulnerability by taking advantage of the country’s abundant natural gas resources.
He said the experience in several states had already demonstrated that cheaper energy could translate into significantly cheaper public transportation.
“We already have evidence from across Nigeria of what is possible when cheaper energy translates into cheaper transportation,” the President said.
States Already Recording Fare Reductions
Tinubu cited several states where CNG-powered and electric transport services have already resulted in substantial reductions in fares.
In Borno State, the President said CNG-powered and electric public transport services currently carry passengers for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna State, 100 CNG-powered buses are providing free transportation on major routes. According to Tinubu, the buses transported approximately 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion in transportation costs.
In Oyo State, the deployment of CNG buses to Pacesetter Transport reportedly reduced the cost of travelling from Lagos to Ibadan from approximately ₦8,000 to ₦3,200 during the initial phase of the programme.
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Similarly, alternative-energy transportation services in Adamawa State have reportedly reduced fares by as much as 50 per cent, bringing some fares down from ₦8,000 to ₦4,000.
In Enugu State, the deployment of 100 CNG buses has reportedly reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
The President also said government-supported buses in Plateau State transport approximately 13,000 commuters every day at a fare of ₦200, compared with more than ₦500 charged by some commercial operators.
FCT Commuters Benefit
In the Federal Capital Territory, Tinubu said the Federal Government’s partnership with the National Union of Road Transport Workers had resulted in fare reductions of up to 40 per cent for passengers using CNG-converted commercial vehicles on selected routes.
On the Area 1-Gwagwalada route, fares reportedly dropped from ₦1,500 to ₦900.
For commuters travelling to Nyanya, fares reportedly fell from ₦700 to ₦420, while the fare on the Wuse route dropped from ₦400 to ₦240.
In Niger State, passengers travelling on the Suleja-Abuja route are reportedly paying ₦550, compared with approximately ₦800 previously.
Meanwhile, Abia State has deployed 40 electric buses, with fares reportedly subsidized by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
Government Rejects Return to Petrol Subsidy
The President said the developments demonstrated that the CNG transition could provide relief to commuters without a return to the petrol subsidy regime.
He maintained that the Federal Government had, over the past three years, invested significantly in developing a CNG transportation ecosystem across Nigeria.
According to Tinubu, more than 120,000 vehicles have now been converted to CNG, while the country has more than 400 certified conversion centres and over 90 CNG refuelling stations.
He said the numbers were increasing daily.
Tinubu also rejected calls for a return to the petrol subsidy regime, arguing that the policy had consumed trillions of naira while leaving the Nigerian economy exposed 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.”
He added: “We must accelerate the cheaper alternatives we have been building at home.”
More States Expand CNG Programmes
The President listed Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom among states currently expanding their CNG transportation programmes.
He said Edo State already had 50 CNG buses in active service, while Kano State had converted more than 1,000 commercial vehicles and was expanding its conversion and refueling network.
Delta, Kwara and Lagos, according to the President, are also expanding CNG-supported transportation services.
In Akwa Ibom, 50 CNG buses have reportedly been delivered ahead of the commencement of commercial operations.
States Told to Meet October 1 Target
Tinubu urged all state governments to sustain the momentum towards the October 1 target.
He directed the states to work with transport unions and commercial operators, support vehicle conversions and fleet deployment, and facilitate the infrastructure required to expand affordable transportation services.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” the President said.
The Federal Government, he added, would continue to support the expansion of CNG infrastructure and access, increase vehicle-conversion capacity and create an enabling environment for state governments, transport operators, manufacturers and private investors.
“Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day,” Tinubu said.
With October 1 now set as the target for broader implementation, attention is expected to turn to state governments and transport operators as Nigerians await to see whether the CNG and electric-vehicle expansion will translate into sustained reductions in the cost of daily transportation across the country.
