“Cheaper Fuel Should Result In Cheaper Fares” — Tinubu, Governors Target Oct 1 Transport Cut

President Bola Ahmed Tinubu has said Nigerians should begin to enjoy lower transport fares from October 1 as the Federal Government and state governors move to translate savings from compressed natural gas (CNG) into cheaper intra-state transportation.

Tinubu disclosed this after meeting with the Governors’ Forum, saying the governors had, on their own initiative, resolved to take immediate measures to reduce transportation costs in their respective states.

He said the measures would focus strongly on leveraging the cost advantages of CNG and electric vehicles.

Federal, states agree on immediate action
According to the President, the Federal Government and the states have agreed to establish a joint committee to begin implementing measures aimed at reducing transport costs.

“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” Tinubu said,adding “I am encouraged that our Governors are moving to bring these benefits closer to the people they serve.”

He said the collaboration was necessary because “each tier of government must keep doing its part and work together for the benefit of every Nigerian.”

120,000 vehicles converted

Tinubu said the Federal Government was already investing heavily in the country’s energy transition through the Presidential CNG Initiative.

“Through the Presidential CNG Initiative, over 120,000 vehicles have been converted nationwide, with more than 100,000 additional conversion kits in the works,” he said.

He added that the government was also expanding conversion centres and refuelling infrastructure across the country.

The President said the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide, comprising 15 CNG mother stations and 86 daughter stations.

He noted that he commissioned four of the projects in May across Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos.

He also cited an Abuja facility capable of serving 1,000 cars and tricycles and 50 trucks and buses daily.

1,000 CNG stations targeted

Tinubu said he had directed the rollout of another 500 CNG refuelling stations nationwide, in addition to the 500 stations earlier ordered by the Fund.

“This brings the programme to 1,000 stations across the country,” he said.

According to him, the expansion of the refuelling network would help make CNG more accessible to vehicle owners and support the wider objective of reducing transportation costs.

‘60 to 80 per cent savings’

The President said vehicles powered by CNG could significantly reduce fuel expenses compared with petrol-powered vehicles.

“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol,” Tinubu said.

He said the objective was for commuters to begin benefiting directly from those savings through lower transport fares.

“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” he said.

“We have agreed that cheaper fuel should result in cheaper fares!”

Tinubu described the agreement with the governors as an important step towards ensuring that the benefits of the energy transition reach ordinary Nigerians.

He ended by reiterating the administration’s call for closer cooperation among the federal, state and local governments.

“Nigeria First,” the President said.