President Bola Ahmed Tinubu has announced plans by the Federal Government and state governments to begin implementing measures aimed at reducing transportation costs across Nigeria through the expanded use of Compressed Natural Gas (CNG) and electric vehicles.
The President said the decision followed discussions with members of the Nigeria Governors’ Forum, whose members, according to him, resolved to take immediate steps to reduce the cost of intra-state transportation by leveraging the lower operating costs of alternative energy vehicles.
Tinubu disclosed that the Federal Government was already making significant investments in the country’s energy transition through the Presidential CNG Initiative, with more than 120,000 vehicles reportedly converted to run on CNG nationwide.
He added that over 100,000 additional conversion kits were being processed, while the government continued to expand conversion centres and CNG refuelling infrastructure across the country.
According to the President, the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, is financing more than 100 gas-related projects nationwide, including 15 CNG mother stations and 86 daughter stations.
Tinubu said he commissioned four of the projects in May across Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and a facility in Abuja with the capacity to serve up to 1,000 cars and tricycles as well as 50 trucks and buses daily.
The President further announced the planned rollout of an additional 500 CNG refuelling stations nationwide, in addition to 500 stations earlier approved by the Fund, bringing the total target to 1,000 stations across the country.
He said intra-state transportation remained one of the areas where Nigerians felt the impact of rising living costs most directly, noting that state governments were strategically positioned to ensure that the benefits of cheaper alternative fuels translated into lower transport fares.
“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately,” Tinubu said.
The President noted that vehicles powered by CNG could spend between 60 and 80 per cent less on fuel than petrol-powered vehicles, expressing confidence that the savings would eventually be passed on to commuters.
Tinubu said the government’s target was for Nigerians to begin benefiting from reduced transportation fares from October 1.
“Cheaper fuel should result in cheaper fares,” the President declared.
He called for sustained cooperation among the Federal, state and local governments, stressing that all tiers of government must work together to deliver the benefits of the country’s energy transition directly to Nigerians.
The initiative is expected to place the Federal Government’s CNG and electric mobility programme at the centre of efforts to reduce transportation costs and ease pressure on households amid continuing economic reforms.
