President Bola Tinubu has urged state governments to ensure that savings from cheaper CNG-powered transportation translate into lower fares for Nigerians ahead of October 1.
Tinubu gave the charge in a statement on Saturday, updating Nigerians on the National Affordable CNG Transit Programme, which was established following his August 27 meeting with the 36 state governors.
He said the objective agreed with the governors was for more Nigerians to begin experiencing “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.
He cited Borno, where CNG-powered and electric public transport services carry commuters for between N50 and N100 on routes where commercial operators charge between N300 and N600.
In Kaduna, he said 100 CNG-powered buses had provided free transportation on major routes, carrying about 3.2 million passengers in their first year and saving commuters more than N3.5bn in transport costs.
Tinubu also said CNG buses deployed to Pacesetter Transport in Oyo reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial deployment.
He said alternative-energy transit services in Adamawa had cut fares by as much as 50 per cent, from N8,000 to N4,000, while 100 CNG buses in Enugu had reduced the Enugu-Nsukka fare from N2,500 to N1,500.
In Plateau, government-supported buses carry about 13,000 commuters daily at N200, compared with more than N500 charged commercially, he said.
Tinubu also cited CNG-converted commercial vehicles operating on several Abuja routes through a partnership with the National Union of Road Transport Workers, saying passengers received a 40 per cent fare reduction.
According to him, fares from Area 1 to Gwagwalada had fallen from N1,500 to N900, Nyanya from N700 to N420, and Wuse from N400 to N240.
He said passengers on the Suleja-Abuja route in Niger paid N550, compared with about N800, while Abia had deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
The President said the Federal Government would support states to expand the programme, noting that disruptions to global energy supplies were putting pressure on petrol and diesel prices and increasing transportation costs.
“Through our partnership with the NURTW, passengers on CNG-converted commercial vehicles on several Abuja commuter routes receive a 40 per cent fare reduction,” he said.
Tinubu said Nigeria, as a gas-rich country, could reduce its exposure to global energy price shocks by expanding the use of alternative energy for transportation.
He said more than 120,000 vehicles had been converted to CNG over the past three years, while the country now had more than 400 certified conversion centres and over 90 CNG refuelling stations.
He also highlighted CNG developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom.
Tinubu said Edo had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles. He added that Delta, Kwara and Lagos were expanding CNG-supported transport services, while Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.
The President said the Federal Government would continue to support CNG infrastructure, conversion capacity and participation by transport operators, manufacturers and private investors.
“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.
“We must accelerate the cheaper alternatives we have been building at home,” he said.
Tinubu added, “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.”
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