Tinubu orders states to cut transport fares with CNG

President Bola Tinubu has urged state governments to accelerate the deployment of compressed natural gas and electric-powered transport systems to reduce fares ahead of October 1.

Tinubu said his administration was working with the 36 state governors under the National Affordable CNG Transit Programme to ensure that more Nigerians begin to experience measurable reductions in transportation costs from October 1.

The President disclosed this in a statement issued on Saturday, following an August 27 meeting with the governors.

He said an implementation committee had been established under the auspices of the Nigeria Governors’ Forum and chaired by the Kwara State Governor, AbdulRahman AbdulRazaq.

According to Tinubu, the committee, PI-CNG, state governments and other stakeholders are working to identify priority transport corridors and determine interventions that would lower fares.

He said the need to accelerate the programme had become more urgent amid renewed pressure on global energy supplies and rising petrol and diesel prices.

Tinubu cited several states where CNG and electric-powered transport services had already reduced fares.

He said commuters in Borno were paying between N50 and N100 on some CNG and electric transport routes, compared with commercial fares of N300 to N600.

In Kaduna, the President said 100 CNG 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 said CNG buses deployed by Pacesetter Transport in Oyo had reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial deployment.

He added that alternative-energy transport services in Adamawa had cut fares by up to 50 per cent, from N8,000 to N4,000.

In Enugu, according to the President, the deployment of 100 CNG buses had reduced the Enugu-Nsukka fare from N2,500 to N1,500, while government-supported buses in Plateau were carrying about 13,000 commuters daily at N200, compared with commercial fares of more than N500.

Tinubu also said CNG-converted commercial vehicles operating on some Abuja routes had reduced fares by 40 per cent through a partnership with the National Union of Road Transport Workers.

He cited the Area 1-Gwagwalada route, where fares had fallen from N1,500 to N900; Nyanya, from N700 to N420; and Wuse, from N400 to N240.

The President said passengers on the Suleja-Abuja route in Niger State were paying N550 instead of 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.

He said the Federal Government had spent the past three years developing a CNG transportation ecosystem as part of efforts to reduce Nigeria’s exposure to fluctuations in global oil prices.

According to him, more than 120,000 vehicles have been converted to CNG, while the country now has more than 400 certified conversion centres and over 90 CNG refuelling stations.

Tinubu said the government would not return to the petrol subsidy regime, which he described as costly and unsustainable.

“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,” he said.

He instead called for faster expansion of CNG and other cheaper energy alternatives.

The President said Edo currently had 50 CNG buses in operation, while Kano had converted more than 1,000 commercial vehicles and was expanding its conversion and refuelling network.

He added that Delta, Kwara and Lagos were expanding CNG-supported transport services, while Akwa Ibom had received 50 CNG buses ahead of their deployment for commercial operations.

Tinubu urged all states to sustain preparations for the October 1 target by working with transport unions and commercial operators, supporting vehicle conversion and fleet deployment, and facilitating the required infrastructure.

“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he said.

The President assured that the Federal Government would continue to support the expansion of CNG infrastructure and conversion capacity while creating an enabling environment for states, transport operators, manufacturers and private investors to participate in the programme.

“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings,” Tinubu said.

“Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day.”