Tinubu Directs States To Cut Transport Fares From 1 October

President Bola Tinubu has directed state governments to ensure that lower operating costs from compressed natural gas (CNG)-powered transportation are reflected in reduced fares for commuters from 1 October.

Tinubu gave the directive in a statement on Saturday while providing an update on the National Affordable CNG Transit Programme, launched after his 27 August meeting with the 36 state governors.

According to the President, the initiative was designed to ensure that Nigerians begin to see “measurable reductions in transportation costs” from 1 October.

“I encourage every state to maintain the momentum towards 1 October. Work with transport unions and commercial operators. Support conversion and fleet deployment.

“Facilitate the infrastructure required. Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he said.

Tinubu said the programme’s impact was already being felt in several states, where CNG-powered and electric buses had helped reduce transportation costs.

He pointed to Borno State, where CNG-powered and electric public transport services charge between N50 and N100 on routes where commercial operators reportedly charge between N300 and N600.

In Kaduna, the President said 100 CNG buses had provided free transportation on major routes, carrying about 3.2 million passengers within their first year and saving commuters more than N3.5 billion in transport costs.

He also cited Oyo State, where CNG buses deployed to Pacesetter Transport initially brought the Lagos-Ibadan fare down from about N8,000 to N3,200.

According to Tinubu, alternative-energy transport services in Adamawa had reduced fares by up to 50 per cent, from N8,000 to N4,000, while 100 CNG buses in Enugu had lowered the Enugu-Nsukka fare from N2,500 to N1,500.

In Plateau State, government-supported buses transport about 13,000 commuters daily at N200, compared with more than N500 charged by commercial operators, he said.

Tinubu further disclosed that CNG-converted commercial vehicles were operating on several routes in Abuja under a partnership with the National Union of Road Transport Workers, resulting in a 40 per cent reduction in fares.

He listed some of the affected routes, saying fares from Area 1 to Gwagwalada had dropped from N1,500 to N900, while the fare to Nyanya fell from N700 to N420 and that to Wuse from N400 to N240.

On the Suleja-Abuja route in Niger State, commuters now pay N550, compared with about N800 previously, while Abia State had introduced 40 electric buses with fares subsidised by 50 per cent.

“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.

The President said the federal government would continue working with state governments to expand the programme, particularly as disruptions to global energy supplies continued to affect petrol and diesel prices and push up transportation costs.

“Through our partnership with the NURTW, passengers on CNG-converted commercial vehicles on several Abuja commuter routes receive a 40 per cent fare reduction,” he said.

Tinubu maintained that Nigeria’s substantial gas reserves could help reduce the country’s vulnerability to fluctuations in global energy prices by encouraging the adoption of alternative energy sources for transportation.

He disclosed that more than 120,000 vehicles had been converted to CNG in the past three years, while over 400 certified conversion centres and more than 90 CNG refuelling stations were now operating across the country.

The President also highlighted CNG-related developments in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom states.

He said Edo currently had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles. Delta, Kwara and Lagos, he added, were expanding CNG-supported transport services, while Akwa Ibom had received 50 CNG buses ahead of the commencement of commercial operations.

Tinubu said the federal government would sustain its support for the development of CNG infrastructure, vehicle conversion capacity and greater participation by transport operators, manufacturers and private investors.

“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumed trillions of naira and left our economy exposed to every movement in international oil prices, as some have suggested.

“We must accelerate the cheaper alternatives we have been building at home,” he said.

Tinubu added, “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.”