President Bola Ahmed Tinubu has directed state governments to ensure that savings from cheaper Compressed Natural Gas (CNG)-powered transportation are reflected in lower fares for Nigerians from October 1.
Tinubu gave the directive on Saturday while providing an update on the National Affordable CNG Transit Programme, established following his August 27 meeting with the 36 state governors.
The President said the objective agreed with the governors was to ensure that Nigerians begin to experience measurable reductions in transportation costs from October 1.
“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.
Tinubu said several states were already recording reductions in transport fares through CNG-powered and electric buses.
He cited Borno State, where CNG-powered and electric public transport services reportedly carry commuters for between N50 and N100 on routes where commercial operators charge between N300 and N600.
In Kaduna, the President said 100 CNG-powered buses had provided free transportation on major routes, carrying about 3.2 million passengers during their first year of operation and saving commuters more than N3.5 billion in transport costs.
Tinubu also said the deployment of CNG buses to Pacesetter Transport in Oyo State had reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial phase.
According to him, alternative-energy transit services in Adamawa had reduced fares by as much as 50 per cent, from N8,000 to N4,000, while 100 CNG buses in Enugu had brought down the Enugu-Nsukka fare from N2,500 to N1,500.
In Plateau State, government-supported buses reportedly carry about 13,000 commuters daily at N200, compared with more than N500 charged by commercial operators.
The President also highlighted CNG-converted commercial vehicles operating on several Abuja routes through a partnership with the National Union of Road Transport Workers (NURTW), saying commuters were benefiting from a 40 per cent reduction in fares.
He gave examples of fares from Area 1 to Gwagwalada, which he said had fallen from N1,500 to N900; Nyanya, from N700 to N420; and Wuse, from N400 to N240.
On the Suleja-Abuja route in Niger State, Tinubu said passengers were paying N550 compared with about N800, 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 said the Federal Government would continue to support states in expanding the programme, particularly as disruptions to global energy supplies continue to put pressure on petrol and diesel prices.
He said Nigeria, as a gas-rich country, could reduce its exposure to global energy price shocks by expanding the use of alternative energy sources in transportation.
According to him, more than 120,000 vehicles have been converted to CNG over the past three years, while Nigeria now has more than 400 certified conversion centres and over 90 CNG refuelling stations.
The President also highlighted developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom states.
He said Edo had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles. Delta, Kwara and Lagos, he added, were expanding CNG-supported transport services, while Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.
Tinubu said the Federal Government would continue to support CNG infrastructure, vehicle conversion capacity and participation by transport operators, manufacturers and private investors.
“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.”
