President Bola Tinubu has called on state governments to ensure that the benefits of cheaper energy from Compressed Natural Gas translate into reduced transportation fares for Nigerians from October 1.
The President made the call on Saturday while providing an update on the National Affordable CNG Transit Programme, which followed his August 27 meeting with the 36 state governors.
Tinubu said the programme was designed to ensure that Nigerians begin to experience “measurable reductions in transportation costs” from October 1.
He urged the states to intensify collaboration with transport unions and commercial operators, expand vehicle conversion and facilitate the deployment of alternative-energy buses.
“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.
According to the President, some states have already recorded significant reductions in fares through the deployment of CNG-powered and electric buses.
Tinubu cited Borno State, where commuters pay between N50 and N100 on routes served by CNG and electric public transport, compared with fares ranging from N300 to N600 charged by commercial operators.In Kaduna, he said 100 CNG buses provided free transportation on major routes, carrying approximately 3.2 million passengers during their first year of operation and saving commuters more than N3.5bn.
The President also disclosed that the deployment of CNG buses to Pacesetter Transport in Oyo State resulted in the reduction of fares on the Lagos-Ibadan route from about N8,000 to N3,200 during the initial phase.Similarly, alternative-energy transport services in Adamawa State reportedly reduced fares by up to 50 per cent, bringing the cost down from N8,000 to N4,000.Tinubu added that the introduction of 100 CNG buses in Enugu reduced fares on the Enugu-Nsukka route from N2,500 to N1,500.
In Plateau State, he said government-supported buses transport about 13,000 commuters daily at N200 per trip, compared with commercial fares of more than N500.The President also highlighted the impact of CNG-converted commercial vehicles operating on some Abuja routes under a partnership with the National Union of Road Transport Workers.
“Through our partnership with the NURTW, passengers on CNG-converted commercial vehicles on several Abuja commuter routes receive a 40 per cent fare reduction,” he said.Tinubu said fares on the Area 1-Gwagwalada route had dropped from N1,500 to N900, while the Nyanya fare declined from N700 to N420 and Wuse from N400 to N240.He also said commuters travelling between Suleja and Abuja now pay N550, compared with about N800 previously, 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,” Tinubu said.The President said the Federal Government would continue to assist states in expanding the initiative, particularly as disruptions in global energy supplies continue to put pressure on petrol and diesel prices and, consequently, transportation costs.Tinubu argued that Nigeria’s substantial gas resources could help shield the country from fluctuations in international energy prices by encouraging the use of alternative energy in the transport sector.He disclosed that more than 120,000 vehicles had been converted to CNG within the past three years, while more than 400 certified conversion centres and over 90 CNG refuelling stations were now operating nationwide.
He further identified Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom among states expanding their CNG transportation programmes.According to him, Edo currently has 50 CNG buses in operation, while Kano has converted more than 1,000 commercial vehicles.He added that Delta, Kwara and Lagos were expanding CNG-backed transportation services, while Akwa Ibom had received 50 CNG buses ahead of their commercial deployment.
Tinubu said the Federal Government would sustain its support for CNG infrastructure, vehicle conversion capacity and increased participation by transport operators, manufacturers and private investors.He also rejected a return to the petrol subsidy regime, saying the government would instead intensify efforts to expand locally available 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.
“We must accelerate the cheaper alternatives we have been building at home,” he said.Tinubu added, “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.”
The administration has previously stated that its CNG and electric mobility initiatives are intended to reduce transportation costs by expanding access to domestically sourced energy.
