Tinubu Sets October 1 Target For Nationwide CNG Transport Fare Cuts

President Bola Ahmed Tinubu has directed state governments to intensify efforts to reduce transportation costs through compressed natural gas (CNG) and electric-powered vehicles, with October 1 set as the target for more Nigerians to begin experiencing lower fares.

Tinubu gave the directive in a statement issued on Saturday, saying the Federal Government and the 36 states had agreed on the objective during his August 27 meeting with the governors.

He said an implementation committee had been established under the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq, to coordinate the programme with PI-CNG & EV, state governments and other stakeholders.

The President said the committee was working to identify priority transport corridors, determine appropriate interventions and put the required arrangements in place, adding that the task had become more urgent because of renewed pressure on global energy supplies and rising petrol and diesel prices.

Tinubu pointed to existing examples across the country where CNG and electric-powered transport have already reduced fares.

In Borno, he said, CNG and electric public transport services carry passengers for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.

In Kaduna, 100 CNG buses provide free transportation on major routes and carried about 3.2 million passengers in their first year of operation, saving commuters more than ₦3.5 billion, according to the President.

He said CNG buses deployed to Pacesetter Transport in Oyo reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment, while alternative-energy transit services in Adamawa cut fares by as much as 50 per cent, from ₦8,000 to ₦4,000.

In Enugu, the deployment of 100 CNG buses has reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500, while government-supported buses in Plateau transport about 13,000 commuters daily at ₦200, compared with commercial fares of more than ₦500.

The President also cited fare reductions on CNG-converted commercial vehicles operating on Abuja routes under a partnership with the National Union of Road Transport Workers.

According to him, fares from Area 1 to Gwagwalada have fallen from ₦1,500 to ₦900, Nyanya from ₦700 to ₦420 and Wuse from ₦400 to ₦240.

In Niger, passengers on the Suleja-Abuja route now pay ₦550 compared with about ₦800, while Abia 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

Tinubu said his administration had invested over the past three years in developing a CNG transportation ecosystem, resulting in more than 120,000 vehicles being converted.

He added that the country now has more than 400 certified conversion centres and over 90 CNG refuelling stations, with the numbers increasing.

The President said Nigeria’s status as a gas-rich country provides an opportunity to reduce its exposure to fluctuations in international energy markets.

He also rejected calls for a return to the former petrol subsidy regime, saying the government should instead accelerate the development of cheaper domestic energy alternatives.

“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,” he said.

Tinubu said the CNG transition was gaining momentum in other states, noting that Edo has 50 CNG buses in active service, while Kano has converted more than 1,000 commercial vehicles and is expanding its conversion and refuelling network.

Delta, Kwara and Lagos, he added, are expanding CNG-supported transport services, while Akwa Ibom has taken delivery of 50 CNG buses ahead of commercial operations.

He urged all state governments to maintain the momentum towards October 1 by working with transport unions and commercial operators, supporting vehicle conversions and fleet deployment, and facilitating the infrastructure required for cheaper transportation.

Tinubu further charged the states to ensure that savings generated from cheaper energy are passed directly to commuters through reduced fares.

“The Federal Government will continue to support the scaling of CNG infrastructure and access, expand conversion capacity, and create the enabling environment for states, transport operators, manufacturers and private investors to participate,” he said.

“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.”