President Bola Ahmed Tinubu has directed state governments to accelerate the deployment of Compressed Natural Gas (CNG) and other alternative-energy transport systems ahead of October 1, saying more Nigerians must begin to benefit from reduced transportation costs.

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

The President said the meeting produced a clear objective of achieving measurable reductions in transportation costs for Nigerians from October 1.

He said an implementation committee for the National Affordable CNG Transit Programme had subsequently been established under the auspices of the Nigeria Governors’ Forum and chaired by Kwara State Governor, AbdulRahman AbdulRazaq.

Tinubu said the committee, the Presidential Initiative on CNG and Electric Vehicles, state governments and other stakeholders were already working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.

He said the initiative had become more urgent amid the current global energy crisis, which was putting pressure on petrol and diesel prices and increasing transportation costs.

The President said experiences from different parts of the country had demonstrated that cheaper energy could translate into lower transportation fares.

In Borno State, according to Tinubu, CNG-powered and electric public transport services were carrying commuters for between N50 and N100 on routes where commercial operators charged between N300 and N600.

He said Kaduna had deployed 100 CNG-powered buses providing free transportation on major routes, adding that the buses carried about 3.2 million passengers in their first year and saved commuters more than N3.5bn in transportation costs.

In Oyo State, Tinubu said CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial deployment.

He added that alternative-energy transit services in Adamawa had reduced fares by as much as 50 per cent, from N8,000 to N4,000.

In Enugu, the President said the deployment of 100 CNG buses had reduced the Enugu-Nsukka fare from N2,500 to N1,500, while government-supported buses in Plateau carried about 13,000 commuters daily at N200, compared with fares of more than N500 charged by commercial operators.

Tinubu also cited the partnership between the Federal Government and the National Union of Road Transport Workers, saying passengers using CNG-converted commercial vehicles on several Abuja commuter routes were benefiting from a 40 per cent reduction in fares.

He said fares on the Area 1-Gwagwalada route had dropped from N1,500 to N900, Nyanya from N700 to N420 and Wuse from N400 to N240.

The President said passengers on the Suleja-Abuja route in Niger State were paying N550 compared with about N800, 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 alternative-energy transport programmes but said more needed to be done.

“I believe more still needs to be done. The Federal Government will support you to scale further,” he said.

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

He acknowledged that Nigeria could not control developments in global energy markets but said the country could reduce its exposure to such shocks because of its natural gas resources.

“But as a gas-rich nation, we can reduce our exposure. That is what we have been doing,” the President said.

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

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

He said the figures were increasing as the government continued to expand the infrastructure.

The President also rejected calls to return to the petrol subsidy regime, describing it as costly to the economy and warning that such a move would leave Nigeria vulnerable to fluctuations in international oil prices.

“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,” he said.

Tinubu instead called for faster development and expansion of alternative-energy transportation systems being deployed across the country.

He said 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.

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

He urged all state governments 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 for the programme.

Tinubu also stressed that the savings from cheaper energy must translate into lower fares for Nigerians.

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

The President assured states, transport operators, manufacturers and private investors of continued Federal Government support through the expansion of CNG infrastructure and access, increased conversion capacity and the creation of an enabling environment for investment.

He said the objective was to ensure that more Nigerians benefited directly from the savings generated by alternative-energy transportation.

“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,” Tinubu said.