FG, 36 Govs Move to Slash Transport Fares Nationwide From October 1, Agree on Aggressive CNG Deployment

By Franklin Adole
President Bola Tinubu and the 36 state governors have agreed on immediate measures aimed at reducing transportation costs across the country, with Nigerians expected to begin enjoying cheaper fares from October 1.

The President announced the agreement after talks with the Governors’ Forum on Thursday, saying the states had resolved, on their own initiative, to deploy Compressed Natural Gas and electric vehicles more aggressively to drive down the cost of intra-state transportation.

Tinubu said the Federal Government and the states would immediately establish a joint committee to implement the measures, insisting that the substantially lower operating cost of CNG-powered vehicles must translate into cheaper fares for commuters.

“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” the President said.

“We have agreed that cheaper fuel should result in cheaper fares!”

The initiative could provide relief to millions of Nigerians struggling with transportation expenses, particularly workers, traders, students, and other commuters whose daily movements have become more expensive following increases in petrol prices.

Tinubu said intra-state transportation was particularly important because it was where citizens felt transport costs most directly and where state governments possessed considerable regulatory and policy powers.

“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” he said.

“I am encouraged that our Governors are moving to bring these benefits closer to the people they serve.”

According to the President, a vehicle powered by CNG spends between 60 and 80 per cent less on fuel than an equivalent petrol-powered vehicle, creating considerable room for operators to reduce fares once CNG becomes more widely available.

Tinubu said the Federal Government was already making significant investments to build the infrastructure required for the transition from petrol to cheaper alternative fuels.

Under the Presidential CNG Initiative, he said, more than 120,000 vehicles had so far been converted to CNG nationwide, while more than 100,000 additional conversion kits were being prepared for deployment.

The government is also expanding the number of vehicle conversion centres and CNG refuelling facilities across the country.

Tinubu disclosed that the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide, including 15 CNG mother stations and 86 daughter stations.

He recalled that in May he commissioned four gas infrastructure projects in Lagos, Abuja, and Owerri, including a 15-station refuelling network in Lagos.

The Abuja facility, according to him, has the capacity to serve 1,000 cars and tricycles as well as 50 trucks and buses every day.

In what could significantly expand access to CNG, the President also announced that he had ordered the rollout of another 500 refuelling stations across the country.

The latest directive comes in addition to 500 stations earlier ordered through the Fund, raising the planned nationwide network to 1,000 CNG refuelling stations.

The expansion is expected to address one of the major constraints to widespread CNG adoption—the availability of conveniently located stations where commercial and private vehicles can refuel.

The agreement with the governors represents a shift in emphasis from merely expanding alternative-fuel infrastructure to ensuring that the savings generated by cheaper energy reach ordinary commuters.

With states exercising substantial authority over intra-state transportation systems, the proposed Federal-State committee is expected to coordinate the deployment of CNG and electric vehicles and determine how lower operating costs can be reflected in fares.

Tinubu said cooperation among the different tiers of government would be critical to delivering the intended benefits to Nigerians.

“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” the President said.