Tinubu To Governors: Ensure CNG Savings Reflect In Lower Transportation Costs From October 1
President Bola Tinubu has directed state governments to ensure that savings from cheaper CNG-powered transportation translate into lower fares for Nigerians from October 1.
Tinubu gave the directive in a statement on Saturday, updating Nigerians on the National Affordable CNG Transit Programme, established after his August 27 meeting with the 36 state governors.
According to the President, the objective agreed with the governors was for 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,” Tinubu said.
He said several states were already recording fare reductions:
Borno: CNG and electric public buses charge N50 to N100 on routes where commercial operators charge N300 to N600.
Kaduna: 100 CNG-powered buses provided free transportation on major routes, carrying about 3.2 million passengers in the first year and saving commuters over N3.5 billion.
Oyo: CNG buses deployed to Pacesetter Transport cut Lagos-Ibadan fare from N8,000 to N3,200.
Adamawa: Alternative-energy transit services cut fares by 50 percent, from N8,000 to N4,000.
Enugu: 100 CNG buses reduced Enugu-Nsukka fare from N2,500 to N1,500.
Plateau: Government-supported buses convey about 13,000 commuters daily at N200, compared to over N500 commercially.
FCT Abuja: Through partnership with the National Union of Road Transport Workers [NURTW], CNG-converted commercial vehicles offer 40 percent fare reduction — Area 1 to Gwagwalada N1,500 to N900, Nyanya N700 to N420, Wuse N400 to N240, while Suleja-Abuja is N550 compared to about N800.
Abia: 40 electric buses with fares subsidised by 50 percent.
“These are not projections. Nigerians are already experiencing these savings,” the President said.
Tinubu said the Federal Government will continue to support expansion, noting that disruptions to global energy supply are pressuring petrol and diesel prices.
He said Nigeria, as a gas-rich country, can reduce exposure to global price shocks by expanding alternative energy for transportation.
More than 120,000 vehicles have been converted to CNG in the last three years, with over 400 certified conversion centres and over 90 CNG refuelling stations nationwide.
He cited other states: Edo with 50 CNG buses in active service, Kano with over 1,000 commercial vehicles converted, Delta, Kwara and Lagos expanding CNG-supported services, and Akwa Ibom which has taken delivery of 50 CNG buses ahead of commercial operations.
“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.
“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.”
