President Bola Ahmed Tinubu has urged state governments to accelerate the implementation of the National Affordable CNG Transit Programme ahead of October 1, saying cheaper energy must translate into reduced transportation fares for Nigerians.
Tinubu made the call in a statement, saying the Federal Government would continue to support states in expanding CNG infrastructure, vehicle conversion and public transportation services amid global energy market disruptions and rising petrol and diesel prices.
The President said he met with the governors of the 36 states on August 27, where they agreed to ensure that more Nigerians begin to experience measurable reductions in transportation costs from October 1.
He said an implementation committee was subsequently established under the auspices of the Nigeria Governors’ Forum and chaired by Kwara State Governor, AbdulRahman AbdulRazaq.
According to Tinubu, the committee, PI-CNG and EV, state governments and other stakeholders are working to identify priority transport corridors, determine appropriate interventions and establish infrastructure required to expand affordable energy-based transportation.
He noted that several states were already recording reductions in transport fares through the deployment of CNG-powered and electric vehicles.
In Borno State, the President said CNG-powered and electric public transport services were carrying commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
He also said Kaduna State had deployed 100 CNG-powered buses providing free transportation on major routes, with the buses carrying about 3.2 million passengers in their first year and saving commuters more than ₦3.5 billion in transport costs.
Tinubu cited the deployment of CNG buses by Pacesetter Transport in Oyo State, saying the initiative reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during its initial deployment.
In Adamawa State, he said alternative-energy transport 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 had brought the Enugu-Nsukka fare down from ₦2,500 to ₦1,500.
The President added that government-supported buses in Plateau State carry about 13,000 commuters daily at ₦200, compared with commercial fares of more than ₦500.
He further disclosed that through a partnership with the National Union of Road Transport Workers, NURTW, passengers using CNG-converted commercial vehicles on some Abuja routes were benefiting from fare reductions of about 40 per cent.
He listed 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.
According to him, passengers on the Suleja-Abuja route in Niger State are paying ₦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.
The President commended states that had moved quickly but said more action was required to expand the programme nationwide.
He said Nigeria could reduce its exposure to fluctuations in international energy markets by making greater use of its abundant natural gas resources.
“Over the last three years, my administration has deliberately invested in building a CNG transportation ecosystem across Nigeria,” Tinubu said.
He disclosed that more than 120,000 vehicles had been converted to CNG, while the country now has more than 400 certified conversion centres and over 90 CNG refuelling stations.
Tinubu also rejected calls for a return to the petrol subsidy regime, describing it as unsustainable and saying it had exposed the economy to international oil price movements.
“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,” he said.
The President said the Federal Government would instead accelerate the development of cheaper domestic energy alternatives.
He identified Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom among states expanding their CNG and alternative-energy transport programmes.
Tinubu said Edo currently had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles.
He added that Delta, Kwara and Lagos were expanding CNG-supported transport services, while Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.
The President urged all state governments to sustain the momentum towards October 1 by working with transport unions and commercial operators, supporting vehicle conversions and fleet deployment, and facilitating the infrastructure required for the programme.
He stressed that savings generated from cheaper energy should be reflected directly 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,” Tinubu said.
“Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day,” he added.