President Bola Tinubu says more Nigerians should begin to experience measurable reductions in transportation costs from October 1, citing the reduction of the Enugu-Nsukka fare from N2,500 to N1,500 following the deployment of 100 CNG buses in Enugu State.
Tinubu disclosed this in a statement on the National Affordable Compressed Natural Gas, CNG, Transit Programme, saying the objective was agreed with the governors of the 36 states at a meeting on August 27.
He said an implementation committee had been established under the Nigeria Governors’ Forum, chaired by Governor AbdulRahman AbdulRazaq of Kwara State, to identify priority transport corridors, determine appropriate interventions and coordinate implementation.
The President said the Enugu experience was among several examples showing how cheaper energy could translate into lower transport fares. In Borno, CNG and electric services charge between N50 and N100 on routes where commercial operators charge N300 to N600.
Tinubu said 100 CNG buses in Kaduna provide free transportation on major routes and carried about 3.2 million passengers in their first year, saving commuters more than N3.5 billion.
He also cited Oyo, where CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about N8,000 to N3,200, and Adamawa, where alternative-energy transport services cut fares by as much as 50 per cent, from N8,000 to N4,000.
In Plateau, the President said government-supported buses carry about 13,000 commuters daily at N200, compared with more than N500 charged commercially, while CNG-converted vehicles on several Abuja routes have recorded a 40 per cent fare reduction.
He said the Area One-Gwagwalada fare fell from N1,500 to N900, Nyanya from N700 to N420 and Wuse from N400 to N240 through the Federal Government’s partnership with the National Union of Road Transport Workers, NURTW.
Tinubu added that passengers on the Suleja-Abuja route in Niger now pay N550 compared with about N800, while Abia has deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” the President said, urging states that have moved quickly to do more and assuring them of Federal Government support to scale the programme.
He said the initiative had become more urgent amid disruptions to global energy supplies, which 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,” Tinubu said, adding that the administration had spent the past three years building a CNG transportation ecosystem.
According to him, more than 120,000 vehicles have been converted to CNG, while the country now has more than 400 certified conversion centres and over 90 CNG refuelling stations, with the figures increasing.
The President rejected calls for a return to the petrol subsidy regime, saying it had consumed trillions of naira and exposed the economy to movements in international oil prices.
“Our answer cannot be to return to the ruinous petrol subsidy regime,” he said, urging states to accelerate the cheaper alternatives already being developed.
Tinubu said Edo has 50 CNG buses in active service, Kano has converted more than 1,000 commercial vehicles, while Delta, Kwara and Lagos are expanding CNG-supported transport services. He added that Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.
He urged state governments to work with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate the infrastructure required to ensure that savings from cheaper energy reach commuters through lower fares.
The President said the Federal Government would continue to expand CNG infrastructure and conversion capacity while creating an enabling environment for states, transport operators, manufacturers and private investors.
“Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day,” Tinubu said.
