CNG: Tinubu sets October 1 deadline for nationwide transport fare cuts

From Juliana Taiwo-Obalonye, Abuja

President Bola Tinubu has set October 1 as the target date for the nationwide implementation of measures aimed at reducing transportation fares through the expanded use of compressed natural gas (CNG) and electric-powered vehicles.

The President urged the 36 state governments to accelerate ongoing CNG and alternative-energy transport programmes, insisting that the savings from cheaper energy must translate into lower fares for commuters.

Tinubu disclosed this in a statement yesterday, saying the October 1 target followed his August 27 meeting with the 36 governors, during which they agreed that more Nigerians should begin to see measurable reductions in transportation costs from October.

Following the meeting, he said, an implementation committee for the National Affordable CNG Transit Programme was established under the auspices of the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.

The President said the committee, PI-CNG & EV, state governments and other stakeholders had commenced work to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.

He, however, urged the states to move faster, particularly against the backdrop of renewed disruptions to global energy supplies that are putting pressure on petrol and diesel prices and driving up transportation costs.

Tinubu said Nigeria could not control developments in global energy markets but could reduce its vulnerability to them by exploiting its abundant gas resources.

“We already have evidence from across Nigeria of what is possible when cheaper energy translates into cheaper transportation,” he said.

The President cited several states where CNG and electric-powered transport services have already resulted in substantial fare reductions.

In Borno, he said, CNG-powered and electric public transport services carry passengers 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, with the buses carrying about 3.2 million passengers in their first year and saving commuters more than ₦3.5 billion in transport costs.

In Oyo, the deployment of CNG buses to Pacesetter Transport 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 100 CNG buses deployed in Enugu have brought the Enugu-Nsukka fare down from ₦2,500 to ₦1,500.

Tinubu also said government-supported buses in Plateau carry about 13,000 commuters daily at ₦200, compared with more than ₦500 charged by commercial operators.

In the Federal Capital Territory, the President said the Federal Government’s partnership with the National Union of Road Transport Workers (NURTW) had resulted in fare reductions of up to 40 per cent for passengers using CNG-converted commercial vehicles on several commuter routes.

He listed Area 1-Gwagwalada, where fares have dropped from ₦1,500 to ₦900; Nyanya, from ₦700 to ₦420; and Wuse, from ₦400 to ₦240.

In Niger State, passengers on the Suleja-Abuja route are paying ₦550 instead of about ₦800, while Abia has deployed 40 electric buses with fares subsidised by 50 per cent.

“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.

The President said the developments demonstrated that the CNG transition could provide relief to commuters without a return to the petrol subsidy regime.

He said the Federal Government had, over the past three years, invested in building a CNG transportation ecosystem across the country.

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

Tinubu said the figures were increasing daily.

He also rejected calls for a return to the petrol subsidy regime, saying the policy had consumed trillions of naira and left the Nigerian economy exposed to fluctuations in international oil prices.

“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.

The President listed Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom among states expanding their CNG transport programmes.

He said Edo already had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles and was expanding its conversion and refuelling network.

Delta, Kwara and Lagos, he said, were expanding CNG-supported transport services, while Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.

Tinubu urged all state governments to sustain the momentum towards October 1, directing them to work with transport unions and commercial operators, support vehicle conversions and fleet deployment, and facilitate the infrastructure needed to expand affordable transport services.

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

He 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.

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

The post CNG: Tinubu sets October 1 deadline for nationwide transport fare cuts appeared first on The Sun Nigeria.