President Bola Ahmed Tinubu has directed state governments to speed up the rollout of compressed natural gas (CNG) and alternative-energy transport schemes, with the Federal Government targeting lower transportation fares for commuters from October 1.
Tinubu said the expansion of CNG-powered and electric public transport was necessary to ensure that savings from cheaper energy translate into reduced fares for Nigerians.
The President disclosed this in a statement, recalling that he met with the 36 state governors on August 27, when they agreed to work towards delivering measurable reductions in transportation costs from October 1.
Following the meeting, an implementation committee was established under the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.
The committee, alongside PI-CNG & EV, state governments and other stakeholders, is working on priority transport corridors, infrastructure requirements and interventions needed to expand affordable energy-based transportation.
Tinubu said several states had already recorded reductions in transport fares through CNG-powered and electric vehicles.
He cited Borno State, where CNG and electric public transport services carry passengers for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna, the President said 100 CNG buses provide free transportation on major routes and carried about 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion.
He also pointed to developments in Oyo, where Pacesetter Transport’s CNG buses reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.
According to Tinubu, alternative-energy transport services in Adamawa have reduced some fares by as much as 50 per cent, while CNG buses in Enugu have lowered the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
In Plateau, government-supported buses reportedly transport about 13,000 commuters daily at ₦200, compared with commercial fares exceeding ₦500.
The President further said CNG-converted commercial vehicles operating on some Abuja routes had reduced fares by about 40 per cent through a partnership with the National Union of Road Transport Workers.
He listed the Area 1-Gwagwalada route, where fares reportedly dropped from ₦1,500 to ₦900; Nyanya, from ₦700 to ₦420; and Wuse, from ₦400 to ₦240.
Tinubu said similar interventions had been recorded in Niger and Abia states, with passengers on the Suleja-Abuja route paying ₦550 compared with about ₦800, while Abia had 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 said the administration had invested in building a CNG transportation ecosystem over the past three years, noting that more than 120,000 vehicles had been converted to CNG.
Tinubu added that Nigeria now has more than 400 certified conversion centres and over 90 CNG refuelling stations.
The President also ruled out a return to petrol subsidy, arguing that the policy had placed a heavy burden on public finances and left the economy vulnerable to movements in international oil prices.
Instead, he said the government would continue developing domestic alternatives, including CNG and electric transportation.
Tinubu identified Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom among states expanding their alternative-energy transport programmes.
He said Edo currently has 50 CNG buses in operation, Kano has converted more than 1,000 commercial vehicles, while Delta, Kwara and Lagos are expanding CNG-supported services. Akwa Ibom, he added, had received 50 CNG buses ahead of commercial operations.
The President urged state governments to work closely with transport unions and operators, accelerate vehicle conversions and fleet deployment, and develop the infrastructure required to expand the programme.
He stressed that the key objective was for lower energy costs to be reflected in the fares paid by commuters.
“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,” Tinubu said.
He urged states to move faster ahead of October 1 so that more Nigerians can benefit from reduced transportation costs.
