President Bola Tinubu has urged Governors of the 36 States to accelerate the rollout of compressed natural gas-powered transport, saying commuters should begin to see lower fares from October 1.
The President said the federal government would support States in expanding CNG infrastructure, converting commercial vehicles and deploying gas- and electric-powered buses as global energy disruptions drive up the cost of petrol, diesel and transportation.
Special Adviser on Information and Strategy Bayo Onanuga in a statement said the decision followed an August 27 meeting with the Governors of the 36 States, at which they agreed to pursue measurable reductions in transport costs.
The statement said that an implementation committee operating under the Nigeria Governors’ Forum was subsequently formed and chaired by AbdulRahman AbdulRazaq, Governors of Kwara State.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” President Tinubu said, directing States governments to work with transport unions and commercial operators.
Government has cited examples from several States to demonstrate the potential impact of alternative-fuel transport.
In Borno, CNG-powered and electric public transport services charge between 50 naira and 100 naira on routes where commercial operators charge between 300 naira and 600 naira, according to the statement.
Kaduna’s fleet of 100 CNG buses provides free transportation on major routes. During their first year, the buses carried about 3.2 million passengers and saved commuters more than 3.5 billion naira in transport costs, the statement said.
According to Onanuga, in Oyo, the deployment of CNG buses by Pacesetter Transport reduced the Lagos-Ibadan fare to about 3,200 naira from 8,000 naira during the initial phase. Adamawa reported fare reductions of as much as 50%, while fares on the Enugu-Nsukka route fell to 1,500 naira from 2,500 naira after the deployment of 100 CNG buses.
Government-supported buses in Plateau carry about 13,000 commuters daily at a fare of 200 naira, compared with more than 500 naira charged by commercial operators.
In Abuja, a partnership with the National Union of Road Transport Workers has reduced fares on some routes served by CNG-converted commercial vehicles.
The fare from Area 1 to Gwagwalada, for example, fell to 900 naira from 1,500 naira, while fares to Nyanya and Wuse declined to 420 naira and 240 naira, respectively.
Niger State reported a reduction in the Suleja-Abuja fare to 550 naira from about 800 naira. Abia State has deployed 40 electric buses with fares subsidized by 50%.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
The President said the latest pressure on fuel and transport prices underscored the need to reduce Nigeria’s dependence on imported petroleum products.
“Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure,” he said.
President Tinubu rejected calls to restore the petrol subsidy, which his administration removed in 2023.
He said the former subsidy system had consumed trillions of naira while leaving the economy vulnerable to fluctuations in international oil prices.
“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime,” he said.
“We must accelerate the cheaper alternatives we have been building at home.”
He disclosed that more than 120,000 vehicles had been converted to CNG over the past three years. It also said Nigeria now had more than 400 certified conversion centres and more than 90 CNG refuelling stations, with both figures rising.
NewsQuest reports that several states are expanding their own programmes.
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 are also expanding CNG-supported transport services. Akwa Ibom has taken delivery of 50 CNG buses ahead of the start of commercial operations.
President Tinubu has also called on states to sustain the momentum ahead of October 1 by supporting vehicle conversions, deploying buses and building the infrastructure needed to serve transport operators.
“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 that more Nigerians feel those savings in the fares they pay every day.”
