says more reductions in transport fares to begin October 1

*Doubles down on petrol subsidy removal

President Bola Ahmed Tinubu has said Nigerians are already benefiting from reduced transportation costs in states that have adopted compressed natural gas (CNG) and electric-powered public transport systems.

The President, in a statement issued on Saturday, said more Nigerians should begin to experience measurable reductions in transportation costs from October 1 under the National Affordable CNG Transit Programme.

Tinubu said the initiative followed a meeting with the governors of the 36 states on August 27, where they agreed on the objective of reducing transportation costs.

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

According to him, the committee, PI-CNG & EV, state governments and other stakeholders were already working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.

The President said the work had become more urgent amid the current global energy crisis, adding that developments across the country had shown what was possible when cheaper energy translated into lower transportation costs.

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

Tinubu stated that 100 CNG-powered buses in Kaduna were providing free transportation on major routes across the state and had carried about 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion in transport costs.

He also cited the deployment of CNG buses to Pacesetter Transport in Oyo, where the Lagos–Ibadan fare was reduced from about ₦8,000 to ₦3,200 during the initial deployment.

In Adamawa, he said alternative-energy transit services had reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000.

Tinubu added that 100 CNG buses deployed in Enugu had reduced the Enugu–Nsukka fare from ₦2,500 to ₦1,500, while government-supported buses in Plateau were carrying about 13,000 commuters daily at ₦200, compared with more than ₦500 charged by commercial operators.

He said passengers using CNG-converted commercial vehicles on several Abuja commuter routes were also receiving a 40 per cent fare reduction through the Federal Government’s partnership with the National Union of Road Transport Workers (NURTW).

According to him, the Area 1–Gwagwalada fare had dropped from ₦1,500 to ₦900, Nyanya from ₦700 to ₦420, and Wuse from ₦400 to ₦240.

The President said passengers on the Suleja–Abuja route in Niger State were paying ₦550, compared with about ₦800 previously, 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,” Tinubu said.

He commended governors and state governments that had moved quickly to implement cheaper-energy transport initiatives, but urged them to do more.

Tinubu said disruptions to global energy supplies were putting pressure on petrol and diesel prices and increasing transportation costs worldwide.

He said Nigeria could not control developments in global energy markets but could reduce its exposure as a gas-rich country.

“That is what we have been doing,” he said.

According to the President, his administration had over the past three years invested in building a CNG transportation ecosystem across the country.

He said more than 120,000 vehicles had been converted, while the country now had more than 400 certified conversion centres and over 90 CNG refuelling stations.

Tinubu said the government would not return to what he described as the “ruinous petrol subsidy regime,” which he said consumed trillions of naira and exposed the economy to movements in international oil prices.

He urged states to accelerate the development of cheaper alternatives and ensure that the savings from lower energy costs were reflected in transport fares paid by citizens.

The President noted that Edo State already had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles and was expanding its conversion and refuelling network.

He added that Delta, Kwara and Lagos were expanding CNG-supported transport services, while Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.

Tinubu urged all states to sustain the momentum ahead of October 1 by working with transport unions and commercial operators, supporting vehicle conversion and fleet deployment and facilitating the infrastructure required.

“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.

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