Tinubu Sets October 1 Target For Lower Transport Fares

….Cites CNG Savings Across Nigeria

President Bola Ahmed Tinubu has directed renewed efforts to ensure that more Nigerians begin to benefit from lower transportation costs through the National Affordable CNG Transit Programme from October 1.

Tinubu disclosed this in an update on the Federal Government’s Compressed Natural Gas (CNG) initiative, saying the objective was agreed upon during his August 27 meeting with the governors of the 36 states.

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

According to the President, the committee, PI-CNG and EV, state governments and other stakeholders are working to identify priority transport corridors and determine appropriate interventions ahead of the October 1 target.

Tinubu said the urgency of the programme had increased amid disruptions in global energy supplies, which have put pressure on petrol and diesel prices and raised transportation costs.

He cited existing CNG and alternative-energy transport schemes across the country as evidence that cheaper energy could translate into lower fares.

In Borno, he said CNG-powered and electric public transport services were carrying commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.

In Kaduna, 100 CNG buses are providing free transportation on major routes and carried about 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion, according to the President.

Tinubu also cited the reduction of the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 following the deployment of CNG buses to Pacesetter Transport in Oyo State.

He said alternative-energy transit services in Adamawa had reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000, while the Enugu-Nsukka fare had dropped from ₦2,500 to ₦1,500 following the deployment of 100 CNG buses.

In Plateau, government-supported buses reportedly transport about 13,000 commuters daily at ₦200, compared with more than ₦500 charged by commercial operators.

The President further said CNG-converted commercial vehicles operating on several Abuja routes had reduced fares by 40 per cent through the government’s partnership with the National Union of Road Transport Workers (NURTW).

He listed the Area 1-Gwagwalada fare as having fallen from ₦1,500 to ₦900, Nyanya from ₦700 to ₦420 and Wuse from ₦400 to ₦240.

Tinubu said passengers on the Suleja-Abuja route in Niger State were paying ₦550 compared with about ₦800, while Abia State had deployed 40 electric buses with fares subsidised by 50 per cent.

“These are not projections. Nigerians are already experiencing these savings,” the President said.
He commended states that had moved quickly, while urging others to accelerate their programmes ahead of October 1.

Tinubu said Nigeria’s status as a gas-rich country provided an opportunity to reduce the impact of global energy price shocks through domestic alternatives.

He disclosed that more than 120,000 vehicles had been converted to CNG over the last three years, while Nigeria now has more than 400 certified conversion centres and over 90 CNG refuelling stations.

The President rejected calls for a return to the petrol subsidy regime, arguing that it had consumed trillions of naira and left the economy exposed to international oil-price movements.

“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,” he said.

He noted that Edo State had 50 CNG buses in active service, Kano had converted more than 1,000 commercial vehicles, while Delta, Kwara and Lagos were expanding CNG-supported transport services.

He added that Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.

Tinubu urged all states to work with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate the infrastructure needed to expand affordable transportation.

“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 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,” Tinubu said.