President Bola Ahmed Tinubu has directed the 36 state governments to intensify efforts to reduce transportation costs for Nigerians, with the National Affordable CNG Transit Programme expected to deliver measurable fare reductions from October 1.
Tinubu, in an update on the programme on Saturday, said the Federal Government and state governments must ensure that the savings from cheaper compressed natural gas (CNG) and other alternative energy sources are passed directly to commuters through lower fares.
The President said he reached the agreement with the governors at a meeting on August 27, following which an implementation committee was established under the auspices of the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.
According to Tinubu, the committee, PI-CNG and EV, state governments and other stakeholders were already working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place ahead of the October 1 target.
He said the urgency had increased following renewed disruptions to global energy supplies, which were putting pressure on petrol and diesel prices and consequently driving up transportation costs.
Tinubu said Nigeria, as a gas-rich country, could reduce its vulnerability to international energy shocks by accelerating the adoption of CNG and electric-powered transportation.
States Record Dramatic Fare Cuts
The President cited several states where CNG and electric transport initiatives have already translated into significant reductions in fares.
He said in Borno, CNG-powered and electric public transport services were moving commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna, 100 CNG-powered buses provide free transportation on major routes, carrying about 3.2 million passengers in their first year and saving commuters more than ₦3.5 billion in transport costs.
Tinubu also disclosed that the deployment of CNG buses to Pacesetter Transport in Oyo State reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.
In Adamawa, he said alternative-energy transit services had cut fares by as much as 50 per cent, from ₦8,000 to ₦4,000, while in Enugu, the deployment of 100 CNG buses had reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
Plateau State, according to the President, now transports about 13,000 commuters daily at ₦200 per trip through government-supported buses, compared with commercial fares exceeding ₦500.
The President further said the Federal Government’s partnership with the National Union of Road Transport Workers (NURTW) had resulted in a 40 per cent reduction in fares on several Abuja commuter routes using CNG-converted commercial vehicles.
He listed the Area 1-Gwagwalada route, where fares dropped from ₦1,500 to ₦900; Nyanya, from ₦700 to ₦420; and Wuse, from ₦400 to ₦240.
In Niger State, passengers on the Suleja-Abuja route now pay ₦550 instead of 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.
120,000 Vehicles Converted
The President said his administration had spent the past three years building a CNG transportation ecosystem across the country as part of efforts to reduce dependence on petrol and shield Nigerians from global energy shocks.
He disclosed that more than 120,000 vehicles had so far been converted to CNG, while over 400 certified conversion centres and more than 90 CNG refuelling stations were operational nationwide.
Tinubu also highlighted further expansion across the states, saying Edo had 50 CNG buses in active service, Kano had converted more than 1,000 commercial vehicles, while Delta, Kwara and Lagos were expanding CNG-supported transport services.
He added that Akwa Ibom had taken delivery of 50 CNG buses ahead of their commercial deployment.
The President rejected calls for a return to the petrol subsidy regime, arguing that it had consumed trillions of naira while leaving Nigeria vulnerable 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,” Tinubu said.
He instead urged the states to accelerate the deployment of cheaper energy alternatives already being developed locally.
Tinubu commended governors and state governments that had moved quickly but said more needed to be done to meet the October 1 objective.
He directed the states to work with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate the infrastructure required to expand CNG transportation.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he told the states.
He assured that the Federal Government would continue to support the expansion of CNG infrastructure and access, increase conversion capacity and create an enabling environment for states, transport operators, manufacturers and private investors.
“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings. Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day,” the President said.
