President Bola Ahmed Tinubu has directed state governments to intensify efforts to reduce transportation costs, with a target of ensuring that more Nigerians begin to benefit from lower fares from October 1 through the expansion of compressed natural gas (CNG) and electric-powered transport.
Tinubu disclosed this in a statement, recalling that he met with the governors of the 36 states on August 27, where they agreed on the objective of achieving measurable reductions in transportation costs.
He said an implementation committee for the National Affordable CNG Transit Programme was subsequently established under the auspices of the Nigeria Governors’ Forum, chaired by Governor AbdulRahman AbdulRazaq.
According to the President, the committee, PI-CNG, state governments and other stakeholders are working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.
He said the urgency of the programme had increased amid renewed pressure on global energy markets.
Tinubu cited examples of states where alternative-energy transport schemes had already resulted in lower fares.
In Borno, he said, CNG-powered and electric public transport services carry commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna, 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.
He 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.
Similarly, alternative-energy transit services in Adamawa have reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000, while in Enugu, the deployment of 100 CNG buses has brought the Enugu–Nsukka fare down from ₦2,500 to ₦1,500.
In Plateau, government-supported buses transport about 13,000 commuters daily at ₦200, compared with fares of more than ₦500 charged by commercial operators.
The President also cited the Federal Government’s partnership with the National Union of Road Transport Workers (NURTW), through which passengers using CNG-converted commercial vehicles on several Abuja routes enjoy a 40 per cent fare reduction.
He listed the Area 1–Gwagwalada fare as having dropped from ₦1,500 to ₦900, Nyanya from ₦700 to ₦420, and Wuse from ₦400 to ₦240.
Tinubu said passengers on the Suleja–Abuja route in Niger State now pay ₦550 compared with about ₦800, while Abia State 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.
He commended governors and state governments that had moved quickly, but urged them to do more, assuring that the Federal Government would support efforts to scale up the initiatives.
Tinubu noted that disruptions to global energy supplies were putting renewed pressure on petrol and diesel prices and increasing transportation costs worldwide.
While Nigeria could not control developments in global energy markets, he said the country could reduce its exposure by taking advantage of its abundant gas resources.
“That is what we have been doing,” he said, adding that his administration had, over the past three years, deliberately invested in building a CNG transportation ecosystem across the country.
According to him, more than 120,000 vehicles have so far been converted to CNG, while the country has over 400 certified conversion centres and more than 90 CNG refuelling stations, with the numbers increasing.
The President rejected calls for a return to the petrol subsidy regime, arguing that it had consumed trillions of naira and exposed the economy to fluctuations in international oil prices.
He instead called for accelerated investment in cheaper alternative energy sources being developed locally.
Tinubu also highlighted progress in several states, saying Edo currently 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.
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 urged all states to sustain the momentum towards the October 1 target by working with transport unions and commercial operators, supporting vehicle conversions and fleet deployment, and facilitating the infrastructure required for alternative-energy transportation.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he said.
Tinubu assured that 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.
“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.
