Tinubu directed states to cut transport fares in line with the CNG program targets by October 1

President Bola Tinubu has directed state governments to ensure that the benefits of cheaper Compressed Natural Gas powered transport are reflected in the fares paid by passengers from 1 October.

The President gave the directive on Saturday while providing an update on the National Affordable CNG Transit Program, following his August 27 meeting with 36 state governors.

According to Tinubu, the agreement reached with governors aims to ensure that Nigerians begin to experience “measurable reductions in transportation costs” from October 1.

He urged states to intensify preparations by working with transport unions and commercial operators, expanding vehicle conversion and facilitating the use of alternative energy buses.

“I encourage every state to maintain momentum as we approach October 1. Work with transportation unions and commercial operators. Support fleet conversion and deployment.

“Facilitate the necessary infrastructure. Most importantly, ensure that savings from cheaper energy reach Nigerians through lower tariffs,” he said.

Tinubu said the program has resulted in lower fares in some areas of the country through the use of CNG and electric powered buses.

In Borno State, for example, he said CNG and electric public transport services carry passengers for between N50 and N100 on routes where conventional commercial operators charge between N300 and N600.

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Kaduna, according to the President, has deployed 100 CNG buses providing free transportation on main routes. The buses reportedly carried about 3.2 million passengers in their first year of operation, resulting in savings of over N3.5 billion for passengers.

Tinubu also cited Oyo State, where CNG buses introduced through Pacesetter Transport reportedly reduced Lagos-Ibadan fares from about N8,000 to N3,200 during initial implementation.

Alternative energy transport services in Adamawa have also reduced fares by 50 per cent, bringing down fares from N8,000 to N4,000, he said.

In Enugu, the deployment of 100 CNG buses reportedly reduced fares on the Enugu-Nsukka route from N2,500 to N1,500.

The President said government-backed buses in Plateau State carry about 13,000 passengers daily at a cost of N200, compared with commercial fares of more than N500.

Tinubu highlighted the impact of CNG conversion on commuter routes in the Federal Capital Territory, where the Federal Government is partnering with the National Union of Road Transport Workers.

He said passengers using CNG-fueled commercial vehicles on some Abuja routes benefit from a 40 percent fare reduction.

Under the arrangement, fares from Area 1 to Gwagwalada reportedly fell from N1,500 to N900, while Nyanya fares fell from N700 to N420.

Tariffs from Wuse, he said, had also dropped from N400 to N240.

On the Suleja-Abuja route in Niger State, passengers pay N550 instead of about N800, while Abia State has deployed 40 electric buses with fares subsidized by 50 percent.

“This is not a projection. Nigerians are already experiencing these savings,” said Tinubu.

He further explained that the Federal Government intends to support states in expanding this program as fluctuations in global energy supplies continue to put pressure on gasoline and diesel prices and, consequently, transportation costs.

“Through our partnership with NURTW, passengers of CNG-converted commercial vehicles on some Abuja commuter routes receive a 40 percent fare reduction,” he said.

The President said Nigeria’s vast natural gas resources provide an opportunity to reduce the country’s exposure to fluctuating international energy prices by expanding alternative energy transportation.

He revealed that more than 120,000 vehicles have been converted to CNG in the last three years, with more than 400 certified conversion centers and more than 90 CNG fueling stations now operating nationwide.

Tinubu also noted developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom as part of the CNG-backed national transport expansion.

According to him, Edo currently has 50 CNG buses in active service, while over 1,000 commercial vehicles have been converted in Kano.

Delta, Kwara and Lagos are also expanding their CNG-powered transport programs, while Akwa Ibom has received 50 CNG buses ahead of the start of commercial operations.

Tinubu 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 in the program.

The president also defended the government’s decision not to return to the fuel subsidy system, arguing that the alternative energy transition offered a way to reduce exposure to international oil price fluctuations.

“At a time like this, our answer is not to return to a fuel subsidy regime that has cost us trillions of naira and left our economy exposed to every movement in international oil prices, as some say.

“We have to accelerate the cheaper alternatives that we have built domestically,” he said.

Tinubu said the priority now is to expand the program quickly so that the benefits already recorded in several states can reach more passengers.

He added, “Nigeria has the gas. We are building the infrastructure. We are already seeing the savings.

“Now we must move faster and scale it up so that more Nigerians experience savings in the fares they pay every day.”