morganable politics/Governance
The move comes amid sustained economic pressure on households following the removal of the fuel subsidy, which has significantly increased transportation costs and contributed to rising prices of goods and services nationwide.
kaNo —
President Bola Tinubu has announced that the Federal Government and state governors have agreed on a nationwide plan to reduce transportation fares, leveraging the cost savings from compressed natural gas (CNG) as part of Nigeria’s ongoing energy transition.
The President disclosed this on Thursday in a personal statement titled “Cheaper Fuel Must Mean Cheaper Transport Fares: President Tinubu, Governors Move to Cut Transport Fares Nationwide.”
He said the resolution followed a meeting with members of the Nigeria Governors’ Forum (NGF), where governors committed to taking immediate steps to ensure that the benefits of cheaper fuel translate into reduced fares for commuters.
Tinubu said a joint federal-state implementation committee would be set up immediately to drive the initiative, with a target date of October 1, 2026, for Nigerians to begin experiencing lower transportation costs.
“I am pleased with my discussion with the Governors’ Forum this afternoon,” the President said. “The governors have, on their own initiative, resolved to take immediate measures to bring down the cost of transportation in their states, with a strong focus on leveraging the cost benefits of CNG and electric vehicles.”
The move comes amid sustained economic pressure on households following the removal of the fuel subsidy, which has significantly increased transportation costs and contributed to rising prices of goods and services nationwide.
Tinubu outlined the scale of the Federal Government’s investments under the Presidential CNG Initiative, noting that over 120,000 vehicles had already been converted to run on compressed natural gas, with an additional 100,000 conversion kits currently being processed.
According to him, the government is also expanding conversion centres and refuelling infrastructure nationwide to support the transition.
“The Federal Government is already investing significantly in this energy transition,” he said. “Through the Presidential CNG Initiative, over 120,000 vehicles have been converted nationwide, with more than 100,000 additional conversion kits in the works.”he said.
Over 100 Gas-Related Projects Financed Nationwide
Tinubu recalled that he had inaugurated some of the projects in May across Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and a facility in Abuja capable of serving up to 1,000 cars and tricycles, as well as 50 trucks and buses daily.
In a further expansion of the programme, the President said he had directed the rollout of an additional 500 CNG refuelling stations nationwide, bringing the total planned network to 1,000 stations.
“I have also directed the additional rollout of another 500 CNG refuelling stations nationwide, in addition to the 500 stations ordered earlier in the year by the Fund,” he said.
Explaining the role of state governments in the initiative, Tinubu noted that intra-state transportation is where Nigerians feel the impact of rising fuel costs most directly, and where governors have the regulatory authority to enforce fare adjustments.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” he said. “I am encouraged that our governors are moving to bring these benefits closer to the people they serve.”he stated
CNG Adoption To Reduce Transport Fares
The President emphasized that the economics of CNG adoption made it imperative for transport operators to reduce fares, stating that vehicles powered by compressed natural gas spend between 60 and 80 per cent less on fuel compared to petrol-powered vehicles.
“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol,” Tinubu said.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares. We have agreed that cheaper fuel should result in cheaper fares.”he added.
He called for coordinated action across all levels of government to ensure the success of the policy, urging stakeholders to prioritize national interest.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian. Nigeria First,” he stated.
On Wednesday, the Director-General of the National Automotive Design and Development Council, Joseph Osanipin, told journalists after meeting with the President at the Presidential Villa that although the number of licensed CNG retail firms had increased from four to 81 nationwide, many fleet operators were yet to reduce fares.
NGF Support NACTP
Meanwhile, the Nigeria Governors’ Forum had earlier thrown its support behind a proposed National Affordable CNG Transit Programme (NACTP), aimed at reducing transportation costs and cushioning the impact of subsidy removal.
The position was contained in a communiqué issued after the forum’s third meeting held in Abuja late Wednesday and signed by its Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq. The communiqué was presented to journalists by the Governor of Bayelsa State, Douye Diri.
According to the governors, the proposed programme would be implemented as a state-led initiative in partnership with the private sector, focusing on vehicle conversions, development of CNG-powered transport fleets, and expansion of supporting infrastructure.
They noted that participating transport operators would be required to commit to reducing fares in line with lower fuel costs.
The forum acknowledged the potential of the programme to ease the burden of transportation costs on Nigerians but indicated that further work would be needed to finalise its financing and implementation framework.
Speaking during a question-and-answer session after the meeting, Diri stressed the central role of transportation in the broader cost-of-living crisis, noting that transport costs directly influence the prices of goods and services.
“Transportation is key. Transportation is key to several other factors,” he said.
“If, for instance, you are talking about foodstuffs, they will tell you that ‘I’m moving from point A to point B, the transport cost is XY.’ And so for that reason, the cost of my yam, the cost of my garri is this,” Diri said.
He added that reducing transportation costs through the adoption of CNG would likely have a ripple effect across the economy, helping to moderate inflation and improve living conditions for citizens.
With both federal and state governments now aligned on the initiative, attention is expected to shift to implementation, as Nigerians await tangible reductions in transport fares in the coming months.