President Bola Tinubu has directed state governments to ensure that savings achieved through the use of Compressed Natural Gas-powered transportation are reflected in lower fares for commuters from October 1.
Tinubu gave the directive in a statement issued on Saturday while providing an update on the National Affordable CNG Transit Programme, launched after 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 tangible reductions in transportation costs from October 1.
He urged state governments to work closely with transport unions and commercial operators, accelerate vehicle conversion and deployment, and provide the infrastructure needed to expand affordable alternative-energy transportation.
Tinubu stressed that the benefits of cheaper energy must ultimately reach commuters through reduced fares.
The President said several states had already recorded significant fare reductions through the deployment of CNG-powered and electric buses.
He cited Borno State, where CNG and electric buses reportedly transport passengers for between N50 and N100 on routes where conventional operators charge between N300 and N600.
In Kaduna, Tinubu said 100 CNG buses provided free transportation on major routes, conveying about 3.2 million passengers within their first year and saving commuters more than N3.5bn.
He also disclosed that the deployment of CNG buses by Pacesetter Transport in Oyo State reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial phase.
According to him, alternative-energy transport services in Adamawa reduced fares by up to 50 per cent, bringing the cost down from N8,000 to N4,000, while CNG buses in Enugu reduced the Enugu-Nsukka fare from N2,500 to N1,500.
Tinubu added that government-supported buses in Plateau State transport about 13,000 passengers daily at N200, compared with commercial fares of more than N500.
He further highlighted the impact of CNG-converted commercial vehicles operating on Abuja routes under a partnership with the National Union of Road Transport Workers.
He said the initiative had reduced fares by 40 per cent, with the Area 1-Gwagwalada fare dropping from N1,500 to N900, Nyanya from N700 to N420, and Wuse from N400 to N240.
The President also cited the Suleja-Abuja route in Niger State, where commuters reportedly pay N550 instead of about N800, 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 supporting states in expanding the programme, particularly as disruptions in global energy supplies continue to place pressure on petrol and diesel prices.
Tinubu said Nigeria’s gas resources provided an opportunity to reduce the country’s vulnerability to international energy price fluctuations by expanding alternative-energy transportation.
He disclosed that more than 120,000 vehicles had been converted to CNG in the past three years, with over 400 certified conversion centres and more than 90 CNG refuelling stations now operating across the country.
The President also mentioned developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom, noting that Edo had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles.
He said Delta, Kwara and Lagos were expanding CNG-supported transportation services, while Akwa Ibom had received 50 CNG buses ahead of their commercial deployment.
Tinubu said the Federal Government would sustain investments in CNG infrastructure, vehicle conversion facilities and partnerships involving transport operators, manufacturers and private investors.
He maintained that the government would not return to the former petrol subsidy system, arguing that it had placed a heavy financial burden on the country and exposed the economy to fluctuations in global 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, as some have suggested.
“We must accelerate the cheaper alternatives we have been building at home,” he said.
The President added that the government would focus on expanding the programme so that more Nigerians could benefit from lower transportation costs.
“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,” he said.
