President Bola Tinubu and state governors have agreed to work together to reduce transportation costs nationwide by taking advantage of cheaper Compressed Natural Gas and electric vehicles.
Tinubu disclosed this on Thursday, saying a joint Federal Government and state committee would be established immediately to implement measures aimed at ensuring that lower CNG costs translate into cheaper transport fares from October 1, 2026.
The President said governors had resolved, on their own initiative, to reduce transportation costs in their respective states, particularly by leveraging the lower operating costs of CNG and electric vehicles.
Tinubu said more than 120,000 vehicles had already been converted to CNG nationwide, while over 100,000 additional conversion kits were being processed. He added that the Federal Government was expanding conversion centres and refuelling infrastructure across the country.
He further announced the rollout of an additional 500 CNG refuelling stations nationwide. This will bring the total number of stations ordered under the programme to 1,000.
According to the President, vehicles running on CNG spend between 60 and 80 per cent less on fuel than petrol-powered vehicles, making it necessary for the savings to be reflected in transport fares.
The initiative received the backing of the Nigeria Governors’ Forum, which endorsed a proposed National Affordable CNG Transit Programme aimed at easing the impact of fuel subsidy removal and reducing the cost of public transportation.
The NGF said the programme would involve state support for CNG vehicle conversions, fleet acquisition and related infrastructure, while participating transport operators would be expected to reduce fares.
Bayelsa State Governor, Douye Diri, who spoke on behalf of the governors, said transportation costs have a multiplier effect on the economy because higher fares also increase the cost of moving food and other goods.
He said reducing transport costs would therefore help ease the wider cost-of-living burden on Nigerians.
The governors, however, said the financing and implementation framework of the programme would require further consideration, while details of its commencement would be worked out through subsequent discussions.
The development comes amid continued concerns over the rising cost of transportation and food following the removal of petrol subsidy in 2023.
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