CNG Buses

Author: Gist Correspondent

President Bola Ahmed Tinubu has directed states to accelerate the implementation of the National Affordable CNG Transit Programme, with the objective of ensuring that more Nigerians begin to experience measurable reductions in transportation costs from October 1.

Tinubu disclosed this in a statement issued on Saturday, saying the initiative followed a meeting with the 36 state governors on August 27, where they agreed on the target of reducing transport costs for citizens.

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, in collaboration with PI-CNG & EV, state governments and other stakeholders, is working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.

Tinubu said the urgency of the programme had increased amid the current global energy crisis, which has placed pressure on petrol and diesel prices and, consequently, transportation costs.

He said experiences from different parts of the country had already demonstrated that cheaper energy could translate into significantly lower transport fares.

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

The President said Kaduna State had deployed 100 CNG-powered buses providing free transportation on major routes, adding that the buses carried about 3.2 million passengers in their first year and saved commuters more than ₦3.5 billion in transport costs.

In Oyo State, Tinubu said CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.

He also cited Adamawa, where alternative-energy transport services had reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000, and Enugu, where 100 CNG buses had reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.

In Plateau State, the President said government-supported buses were transporting about 13,000 commuters daily at ₦200, compared with commercial fares of more than ₦500.

He said the Federal Government's partnership with the National Union of Road Transport Workers (NURTW) had also resulted in fare reductions on several Abuja commuter routes through CNG-converted commercial vehicles.

Tinubu gave examples of fares on the Area 1-Gwagwalada route, which he said had fallen from ₦1,500 to ₦900; Nyanya, from ₦700 to ₦420; and Wuse, from ₦400 to ₦240.

He added that 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.

Tinubu commended state governments that had moved quickly to deploy alternative-energy transport systems but urged all states to do more to ensure that the benefits reached commuters.

He said the Federal Government would support states in scaling up their initiatives, particularly against the backdrop of renewed disruptions to global energy supplies.

“Disruptions to global energy supplies are once again pressuring petrol and diesel prices and increasing transportation costs worldwide,” he said.

“Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure.”

The President said his administration had, over the past three years, deliberately invested in developing a CNG transportation ecosystem across the country.

He disclosed that more than 120,000 vehicles had been converted to CNG, while the country now had more than 400 certified conversion centres and over 90 CNG refuelling stations, with the numbers increasing.

Tinubu also defended the administration's decision to end the petrol subsidy, saying the government would not return to what he described as the “ruinous petrol subsidy regime” that consumed trillions of naira and exposed the economy to movements in international oil prices.

Instead, he called for faster development of cheaper domestic energy alternatives.

The President noted that CNG adoption was expanding across several states, citing Edo, which he said had 50 CNG buses in active service; Kano, where more than 1,000 commercial vehicles had been converted; and Delta, Kwara and Lagos, which he said were expanding CNG-supported transport services.

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

Tinubu urged all state governments to sustain preparations towards the October 1 target by working with transport unions and commercial operators, supporting vehicle conversion and fleet deployment, and facilitating the infrastructure required for alternative-energy transportation.

He stressed that the key objective was to ensure that savings generated from cheaper energy translated directly into lower fares for commuters.

“The Federal Government will continue to support the scaling of CNG infrastructure and access, expand conversion capacity, and create the enabling environment for states, transport operators, manufacturers and private investors to participate,” he said.

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

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