President Bola Tinubu has directed the Federal Government and state governments to accelerate the expansion of Compressed Natural Gas (CNG) transport initiatives as part of efforts to reduce transportation costs for Nigerians from October 1.
Tinubu said on Saturday that the Federal Government was working with governors, transport unions and other stakeholders to ensure that savings from cheaper energy are reflected directly in transport fares.
The President said the decision followed a meeting with the 36 state governors on August 27, where they agreed on the need to expand access to affordable transportation across the country.
He said an implementation committee for the National Affordable CNG Transit Programme had subsequently been established under the Nigeria Governors’ Forum, with Kwara State Governor, AbdulRahman AbdulRazaq, as chairman.
According to Tinubu, the committee, in collaboration with the Presidential Initiative on CNG and Electric Vehicles, state governments and transport operators, is identifying priority routes and interventions that can deliver immediate reductions in fares.
The President cited existing CNG and electric transport schemes in several states as evidence that cheaper energy could significantly reduce what commuters pay.
In Borno State, he said CNG-powered and electric buses were carrying passengers for between N50 and N100 on routes where commercial operators charge between N300 and N600.
He also said Kaduna State’s 100 CNG buses provided free transportation on major routes, carrying about 3.2 million passengers in their first year and saving commuters more than N3.5bn.
In Oyo State, Tinubu said CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial deployment.
He added that alternative-energy transport services had reduced fares by as much as 50 per cent in Adamawa, while in Enugu, the Enugu-Nsukka fare dropped from N2,500 to N1,500 following the deployment of 100 CNG buses.
In Plateau, government-supported buses reportedly carry about 13,000 passengers daily at N200, compared with fares above N500 charged by commercial operators.
The President also pointed to the CNG conversion programme in Abuja, saying passengers using converted commercial vehicles on some routes enjoy fare reductions of up to 40 per cent.
He listed Area 1-Gwagwalada, Nyanya and Wuse routes, where fares had reportedly fallen from N1,500 to N900, N700 to N420 and N400 to N240 respectively.
Tinubu said Niger State had also recorded reductions on the Suleja-Abuja route, where passengers pay about N550 compared with the previous N800, while Abia State had deployed 40 electric buses with fares subsidised by 50 per cent.
The President said the current global energy crisis had made the transition to alternative energy sources more urgent, particularly as fluctuations in petrol and diesel prices continue to affect transportation costs.
He argued that although Nigeria could not control global energy markets, its large gas reserves gave the country an opportunity to reduce its exposure to international energy shocks.
Tinubu said his administration had invested in developing a CNG transportation ecosystem over the past three years, with more than 120,000 vehicles converted to CNG.
He added that more than 400 certified conversion centres and over 90 CNG refuelling stations were now operating nationwide.
The President urged state governments to intensify their collaboration with transport unions and commercial operators ahead of October 1, particularly by supporting vehicle conversion and expanding alternative-energy fleets.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” Tinubu told the governors.
He assured Nigerians that the Federal Government would continue investing in CNG infrastructure, conversion capacity and access while creating an environment capable of attracting private-sector investment.
“Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day,” he said.