President Bola Ahmed Tinubu says the Federal Government and state governors have agreed to take immediate steps to reduce transportation costs across the country, with a focus on the use of Compressed Natural Gas (CNG) and electric vehicles.
Tinubu disclosed this in a statement following his meeting with members of the Nigeria Governors’ Forum on Thursday, saying the governors had, on their own initiative, resolved to implement measures aimed at bringing down transportation fares in their respective states.
According to the President, the initiative will leverage the lower operating costs associated with CNG-powered and electric vehicles to provide relief for Nigerians.
“I am pleased with my discussion with the Governors’ Forum this afternoon,” Tinubu said.
“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.”
The President said the Federal Government had already made significant investments in the country’s ongoing energy transition.
He disclosed that more than 120,000 vehicles had been converted to CNG nationwide through the Presidential CNG Initiative, while over 100,000 additional conversion kits were in the pipeline.
Tinubu added that the government was also expanding CNG conversion centres and refuelling infrastructure across the country.
He said the Midstream and Downstream Gas Infrastructure Fund was currently financing more than 100 gas projects nationwide, comprising 15 CNG mother stations and 86 daughter stations.
The President said four of the projects had been commissioned in Lagos, Abuja and Owerri in May, including a 15-station refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles as well as 50 trucks and buses daily.
Tinubu further disclosed that he had directed the rollout of an additional 500 CNG refuelling stations nationwide, on top of the 500 stations previously ordered by the Fund.
This, he said, would bring the total number of planned CNG refuelling stations under the programme to 1,000 across the country.
According to the President, reducing intra-state transportation costs is particularly important because that is where Nigerians feel the impact of rising transport fares most directly.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” he said.
Tinubu said he was encouraged by the decision of the governors to bring the benefits of cheaper alternative fuel closer to Nigerians.
The President also announced the establishment of a joint Federal and State committee to begin the immediate implementation of the agreed measures.
He said vehicles powered by CNG could save between 60 and 80 per cent on fuel costs compared with petrol-powered vehicles.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” Tinubu said.
“We have agreed that cheaper fuel should result in cheaper fares!”
The President urged all tiers of government to work together to ensure that the benefits of the energy transition translate into tangible relief for Nigerians.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
Tinubu ended the statement with his administration’s recurring slogan: “Nigeria First.”
