FG, States Target Lower Transport Fares With CNG, Electric Buses
The Federal Government has directed state governments to accelerate the deployment of compressed natural gas (CNG) and electric mass transit systems as part of efforts to reduce transportation fares across the country from October 1.
President Bola Ahmed Tinubu gave the directive on Saturday while providing an update on the National Affordable CNG Transit Programme, stressing the need for states to expand alternative-energy transportation and ensure that the benefits of cheaper fuel reach commuters.
The President, however, ruled out a return to the petrol subsidy regime, arguing that the policy had consumed trillions of naira and exposed the Nigerian economy to fluctuations in global crude oil prices.
Tinubu said more than 120,000 vehicles had already been converted to CNG, while over 400 certified conversion centres and more than 90 CNG refuelling stations were operational across the states and the Federal Capital Territory.
He recalled that during a meeting with the 36 state governors on August 27, an agreement was reached for Nigerians to begin experiencing measurable reductions in transportation costs from October 1.
Following the meeting, an implementation committee for the National Affordable CNG Transit Programme was established under the Nigeria Governors’ Forum, with Kwara State Governor AbdulRahman AbdulRazaq as its chairman.
The committee, working with the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, state governments and other stakeholders, has been identifying priority transport corridors and determining the interventions required to meet the October deadline.
According to Tinubu, the initiative has become more urgent due to disruptions in global energy supplies, which have increased pressure on petrol and diesel prices and contributed to rising transportation costs.
He said Nigeria could not control developments in international energy markets but could reduce its vulnerability by expanding domestic gas-powered and electric transport alternatives.
