President Bola Tinubu has urged 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 made the call in a statement on Saturday while providing an update on the National Affordable CNG Transit Programme, established following his August 27 meeting with the 36 state governors.
He said the objective agreed with the governors was to ensure that more 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,” he said.
The President said several states were already recording reductions in transport fares through CNG-powered and electric buses.
In Borno State, he said CNG-powered and electric public transport services carry passengers for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna, Tinubu said 100 CNG-powered buses had provided free transportation on major routes, carrying about 3.2 million passengers during their first year and saving commuters more than ₦3.5 billion.
He also said CNG buses deployed to Pacesetter Transport in Oyo State reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.
According to him, alternative-energy transport services in Adamawa 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.
In Plateau State, government-supported buses reportedly carry about 13,000 commuters daily for ₦200, compared with more than ₦500 charged by commercial operators.
Tinubu also cited CNG-converted commercial vehicles operating on several Abuja routes through a partnership with the National Union of Road Transport Workers (NURTW), saying passengers were benefiting from a 40 per cent fare reduction.
He said fares from Area 1 to Gwagwalada had dropped from ₦1,500 to ₦900, Nyanya from ₦700 to ₦420, and Wuse from ₦400 to ₦240.
The President added that passengers on the Suleja-Abuja route in Niger State were paying ₦550, compared with about ₦800, 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.
He said the Federal Government would continue supporting states in expanding the programme, noting that disruptions to global energy supplies were putting pressure on petrol and diesel prices and consequently increasing transportation costs.
Tinubu said Nigeria had converted more than 120,000 vehicles to CNG over the past three years, with more than 400 certified conversion centres and over 90 CNG refuelling stations now operating across the country.
He also highlighted CNG developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom.
According to him, Edo 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 received 50 CNG buses ahead of commercial operations.
Tinubu said the Federal Government would continue to support CNG infrastructure, vehicle conversion capacity and participation by transport operators, manufacturers and private investors.
He added that Nigeria should accelerate the development of alternative energy for transportation rather than return to the previous petrol subsidy system.
“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.