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President Bola Tinubu and state governors have agreed to work together to drive down transport fares from October 1 by leveraging cheaper Compressed Natural Gas (CNG) and electric vehicles.
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Tinubu says more than 120,000 vehicles have been converted to CNG, while over 100,000 additional conversion kits are being processed as the government expands alternative-fuel infrastructure.
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The Federal Government plans to increase CNG refuelling stations to 1,000 nationwide, alongside more than 100 gas projects being financed through the Midstream and Downstream Gas Infrastructure Fund.
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A joint Federal and State committee will coordinate implementation as Tinubu urges governors to intensify poverty reduction and agricultural mechanisation efforts.
August 28, (THEWILL) — President Bola Tinubu and state governors have agreed to jointly move against high transportation costs by taking measures to drive down transport fares across the country from October 1.
The agreement, reached at a meeting between the President and the governors at the State House, Abuja, on Thursday, is anchored on the growing adoption of cheaper Compressed Natural Gas (CNG) and electric vehicles as alternatives to petrol-powered transportation. The meeting was held on the sidelines of the National Economic Council (NEC) meeting.
In a statement, Tinubu said the objective was to ensure that Nigerians directly benefit from savings generated by the Federal Government’s energy transition programme, particularly as the administration expands CNG conversion centres and refuelling infrastructure nationwide.
The President said the governors had, on their own initiative, resolved to take immediate measures to reduce transportation costs in their respective states.
“I am pleased with my discussion with the Governors’ Forum. The Governors have, on their own initiative, resolved to take immediate measures to bring down the cost of transportation in their states. We have agreed that cheaper fuel should result in cheaper fares. From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares”, Tinubu stated.
The development comes against the backdrop of the sharp increase in transportation costs since the removal of the petrol subsidy, which has significantly increased the cost of daily commuting for millions of Nigerians.
Transportation costs have remained one of the major channels through which higher energy prices feed into household expenses, with commuters, traders, workers and businesses bearing the consequences of increased fares.
The administration has therefore been pushing CNG as a cheaper alternative to petrol, arguing that the conversion of vehicles to the fuel could substantially reduce operating costs for transport operators and, consequently, ease fares for passengers.
Tinubu said the Federal Government was already investing significantly in CNG conversion centres and refuelling infrastructure across the country.
According to him, more than 120,000 vehicles have so far been converted to CNG nationwide, while more than 100,000 additional conversion kits are being processed.
He said the Federal Government was also financing over 100 gas projects across the country through the Midstream and Downstream Gas Infrastructure Fund.
The projects include 15 CNG mother stations and 86 daughter stations, with four projects already commissioned in Lagos, Abuja and Owerri.
The President further disclosed that the Federal Government had directed the rollout of another 500 CNG refuelling stations nationwide. In addition to the 500 previously ordered, the planned expansion will bring the total number of CNG refuelling stations targeted by the government to 1,000.
Tinubu said the investment was critical to ensuring that the benefits of cheaper gas could be transmitted to vehicle owners and commuters, particularly by eliminating the infrastructure challenges that could discourage transport operators from switching from petrol.
“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol”, he said.
The President stressed that intra-state transportation was particularly important because it was the area where Nigerians directly experienced the impact of high transportation costs.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers. I am encouraged that our governors are moving to bring these benefits closer to the people they serve”, he added.
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To ensure that the agreement translates into concrete action, Tinubu said a joint Federal and State committee would be established to begin implementing measures agreed at the meeting.
The committee is expected to coordinate the efforts of both levels of government and help ensure that savings arising from cheaper alternative fuels are reflected in transportation fares.
The President also urged state governments to intensify their efforts to reduce poverty and improve the living conditions of citizens.
He called for more deliberate collaboration between the Federal Government and the subnational governments, stressing that the economic challenges facing Nigerians required coordinated interventions across all levels of government.
Tinubu identified the Presidential CNG Initiative as one of the key measures introduced by his administration to reduce transportation costs and ease economic pressure on households.
Beyond transportation, the President urged governors to encourage farmers in their respective states to take advantage of the Federal Government’s agricultural mechanisation programme.
He said the programme was supported by six maintenance centres across the country and was designed to improve farmers’ access to mechanised equipment and boost agricultural producti
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