President Bola 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, which was established following his August 27 meeting with the 36 state governors.
According to the President, the Federal Government and the states agreed 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,” Tinubu said.
The President said several states were already recording significant reductions in transportation costs through CNG-powered and electric buses.
He cited Borno State, where CNG-powered and electric public transport services charge between ₦50 and ₦100 on routes where commercial operators reportedly 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 ₦3.5 billion in transport costs.
He also highlighted the impact of CNG buses deployed to Pacesetter Transport in Oyo State, saying fares on the Lagos-Ibadan route fell from about ₦8,000 to ₦3,200 during the initial deployment.
In Adamawa, alternative-energy transit services have reportedly reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000, while 100 CNG buses in Enugu reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
Tinubu said government-supported buses in Plateau carry about 13,000 commuters daily at ₦200, compared with more than ₦500 charged by commercial operators.
In Abuja, he said CNG-converted commercial vehicles operating on several routes through a partnership with the National Union of Road Transport Workers (NURTW) had delivered a 40 per cent reduction in passenger fares.
According to him, fares from Area 1 to Gwagwalada dropped from ₦1,500 to ₦900, while the Nyanya route fell from ₦700 to ₦420 and Wuse from ₦400 to ₦240.
The President added that passengers on the Suleja-Abuja route in Niger State now pay ₦550, compared with about ₦800 previously, 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,” Tinubu said.
The President said the Federal Government would continue supporting states to expand the programme, particularly as disruptions to global energy supplies continue to put pressure on petrol and diesel prices and, consequently, transportation costs.
Tinubu said Nigeria’s abundant gas resources provided an opportunity to reduce the country’s exposure to global energy price shocks by accelerating the adoption of alternative-energy transportation.
He disclosed that more than 120,000 vehicles had 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.
He also cited developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom.
According to him, Edo currently has 50 CNG buses in active service, while Kano has converted more than 1,000 commercial vehicles. Delta, Kwara and Lagos are expanding CNG-supported transport services, while Akwa Ibom has taken delivery of 50 CNG buses ahead of commercial operations.
Tinubu said the Federal Government would continue to support CNG infrastructure, 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.”
