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President Bola Tinubu has directed that cheaper fuel must translate into cheaper transport fares, as state governors agreed to adopt Compressed Natural Gas (CNG) and electric vehicles to reduce commuting costs nationwide.
Tinubu announced the plan in a statement on Thursday after a meeting with the Governors’ Forum.
He said the move would take effect from October 1.
“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,” Tinubu said.
The president said the national government was investing significantly in the energy transition through the Presidential CNG Initiative, with over 120,000 vehicles converted nationwide and more than 100,000 additional conversion kits in the works.
He said the Midstream and Downstream Gas Infrastructure Fund was currently financing more than 100 gas projects across the country, including 15 CNG mother stations and 86 daughter stations.
Tinubu also directed the rollout of another 500 CNG refuelling stations nationwide, in addition to 500 stations ordered earlier this year, bringing the programme to 1,000 stations across the country.
“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,” Tinubu said.
“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately. A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol.”
Tinubu said the goal from October 1 was for Nigerians to begin to partake in those savings through lower transport fares.
“We have agreed that cheaper fuel should result in cheaper fares! Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
