President Bola Tinubu has urged state governments to ensure that savings from cheaper CNG-powered transportation translate into lower fares for Nigerians ahead of 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.
He said the objective agreed with the governors was for more Nigerians to begin experiencing “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.
According to the President, several states are already recording significant reductions in transport fares through CNG-powered and electric buses.
He cited Borno State, where CNG-powered and electric public transport services carry commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna, Tinubu said 100 CNG-powered buses provided free transportation on major routes, carrying about 3.2 million passengers in their first year and saving commuters more than ₦3.5bn in transport costs.
He also said the deployment of CNG buses to Pacesetter Transport in Oyo State reduced fares on the Lagos-Ibadan route from about ₦8,000 to ₦3,200 during the initial phase.
In Adamawa, alternative-energy transit services have reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000, while 100 CNG buses in Enugu have brought the Enugu-Nsukka fare down from ₦2,500 to ₦1,500, Tinubu said.
In Plateau State, government-supported buses carry about 13,000 commuters daily for ₦200, compared with more than ₦500 charged by commercial operators.
The President also cited CNG-converted commercial vehicles operating on several Abuja routes through a partnership with the National Union of Road Transport Workers, saying passengers receive fare reductions of up to 40 per cent.
According to him, fares from Area 1 to Gwagwalada have fallen from ₦1,500 to ₦900, while fares on the Nyanya and Wuse routes have dropped from ₦700 to ₦420 and ₦400 to ₦240, respectively.
Tinubu said passengers on the Suleja-Abuja route in Niger State now pay ₦550, compared with about ₦800 previously, 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.
He said the Federal Government would continue to support states in expanding the programme, noting that disruptions to global energy supplies were putting pressure on petrol and diesel prices and driving up transportation costs.
Tinubu 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.
He disclosed that more than 120,000 vehicles had been converted to CNG over the past three years, while the country 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.
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 the commencement of commercial operations.
Tinubu said the Federal Government would continue to support CNG infrastructure, vehicle conversion capacity and greater 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.”
