CNG Revolution: Tinubu Wants Lower Transport Fares From Oct 1

President Bola Ahmed Tinubu has directed states to intensify efforts to reduce transportation costs through the use of compressed natural gas (CNG), saying more Nigerians should begin to experience measurable savings in fares from October 1.

Tinubu said the directive followed his August 27 meeting with the governors of the 36 states, where they agreed on the objective of delivering lower transportation costs through the National Affordable CNG Transit Programme.

He said an implementation committee had subsequently been established under the auspices of the Nigeria Governors’ Forum, chaired by Governor AbdulRahman AbdulRazaq.

According to him, the committee, PI-CNG & EV, state governments and other stakeholders were already working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.

Tinubu said existing CNG-powered transport schemes across the country had demonstrated that cheaper energy could translate into lower fares.

“In Borno, CNG-powered and electric public transport services are moving commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600,” the President revealed.

He also cited Kaduna, where 100 CNG-powered buses provide 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.

In Oyo, he added, CNG buses deployed to Pacesetter Transport 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.

Tinubu said Enugu had reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500 following the deployment of 100 CNG buses, while government-supported buses in Plateau transport about 13,000 commuters daily for ₦200, compared with more than ₦500 charged commercially.

The Nigerian leader further disclosed that passengers using CNG-converted commercial vehicles on several Abuja commuter routes, under a partnership with the National Union of Road Transport Workers (NURTW), were receiving a 40 per cent fare reduction.

He said the Area 1-Gwagwalada fare had fallen from ₦1,500 to ₦900, Nyanya from ₦700 to ₦420, and Wuse from ₦400 to ₦240.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.

And, urged state governments to sustain the momentum ahead of October 1, calling on them to work with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate infrastructure needed to expand alternative-energy transport.

The President said the push for cheaper transport had become more urgent because of disruptions to global energy supplies, which he said were putting pressure on petrol and diesel prices and increasing transportation costs worldwide.

“​​Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure,” he insisted.

Tinubu said his administration had, over the last three years, invested in developing a CNG transportation ecosystem, with more than 120,000 vehicles converted, over 400 certified conversion centres and more than 90 CNG refuelling stations currently operating across the country.

He said the figures were increasing daily.

The President, however, rejected calls to return to the petrol subsidy regime, describing it as “ruinous” and saying it had consumed trillions of naira while leaving the economy exposed to international oil price movements.

“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,” he stated.

Instead, he called for faster expansion of locally available alternatives, noting that several states were already increasing their CNG transport capacity.

Tinubu revealed Edo had 50 CNG buses in active service, Kano had converted more than 1,000 commercial vehicles, while Delta, Kwara and Lagos were expanding CNG-supported transport services.
He added that Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.

The President said the Federal Government would continue to support the expansion of CNG infrastructure and access, increase conversion capacity and create an enabling environment for states, transport operators, manufacturers and private investors.

“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he urged, while giving the charge that “​​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.”