President Bola Tinubu has directed state governments to ensure that the savings from the use of compressed natural gas and other alternative energy sources are reflected in lower transport fares for Nigerians from October 1.
Tinubu gave the directive on Saturday while providing an update on the National Affordable CNG Transit Programme, which was developed after his meeting with the 36 state governors on August 27.
The President said the Federal Government and the states had agreed to ensure that Nigerians begin to experience noticeable reductions in transportation costs from October.
He urged state governments to work with transport unions and commercial operators to accelerate the conversion of vehicles and deployment of alternative-energy buses.
Tinubu said, “Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares.”
According to him, several states have already recorded significant reductions in transport costs through the deployment of CNG-powered and electric buses.
He cited Borno State, where government-supported CNG and electric buses reportedly charge between N50 and N100 on routes where commercial operators charge as much as N300 to N600.
In Kaduna, Tinubu said 100 CNG buses had provided free transportation on major routes, carrying about 3.2 million passengers during their first year of operation and saving commuters more than N3.5bn.
The President also highlighted developments in Oyo State, saying the deployment of CNG buses by Pacesetter Transport reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial phase.
He said alternative-energy transport services in Adamawa had reduced fares by up to 50 per cent, while the Enugu-Nsukka fare reportedly fell from N2,500 to N1,500 following the introduction of CNG buses.
Tinubu added that government-supported buses in Plateau transport about 13,000 commuters daily at N200, compared with fares exceeding N500 charged by commercial operators.
In the Federal Capital Territory, he said passengers using CNG-converted commercial vehicles on selected routes had benefited from a 40 per cent reduction in fares.
The President gave examples including the Area 1-Gwagwalada route, where fares had dropped from N1,500 to N900, while the Nyanya and Wuse routes had fallen from N700 to N420 and N400 to N240 respectively.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
He said more than 120,000 vehicles had been converted to CNG nationwide over the past three years, supported by over 400 certified conversion centres and more than 90 refuelling stations.
Tinubu also disclosed that Kano had converted more than 1,000 commercial vehicles, while Edo had 50 CNG buses in operation. He said Akwa Ibom had received 50 CNG buses ahead of commercial operations, with Delta, Kwara and Lagos also expanding alternative-energy transport programmes.
The President said the Federal Government would continue to invest in CNG infrastructure and conversion capacity while encouraging transport operators, vehicle manufacturers and private investors to participate.
He rejected calls for a return to the petrol subsidy regime, arguing that it had placed a heavy burden on government finances and exposed the economy to fluctuations in global oil prices.
Tinubu said, “Nigeria has the gas. We are building the infrastructure. We are already seeing the savings.”
He added that the government would continue to expand the programme so that more Nigerians could benefit from reduced transportation costs.
“Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day,” the President said.
