...Using CNG, we have agreed that cheaper fuel should result in cheaper fares, says Tinubu

President Bola Ahmed Tinubu has said the Federal Government and the 36 states are targeting October 1 for Nigerians to begin enjoying lower transport fares arising from the cost savings offered by Compressed Natural Gas (CNG) and electric vehicles.

The President said cheaper alternative fuel must translate into reduced transportation costs for Nigerians.

He stressed that the benefits of the ongoing energy transition should be felt directly by commuters.

Tinubu stated this last night in a message posted on his verified X handle, @officialABAT, following a meeting with governors at the State House, Abuja, in the afternoon.

The President said the Federal Government and states had agreed to establish a joint committee to immediately work out measures for reducing transportation costs across the country.

According to him, vehicles running on CNG spend between 60 and 80 per cent less on fuel than petrol-powered vehicles, making it imperative for the savings to reflect in fares paid by Nigerians.

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

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

The President expressed satisfaction with the outcome of his meeting with the governors, noting that they had, on their own initiative, resolved to take immediate steps to reduce transportation costs in their respective states.

“I am pleased with my discussion with the Governors’ Forum this afternoon.

“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,” he said.

Tinubu noted that the Federal Government had already committed substantial resources to the transition to cheaper and cleaner transportation energy through the Presidential CNG Initiative.

said more than 120,000 vehicles had so far been converted to CNG nationwide, while over 100,000 additional conversion kits were being processed for deployment.

“The Federal Government is already investing significantly in this energy transition.

“Through the Presidential CNG Initiative, over 120,000 vehicles have been converted nationwide, with more than 100,000 additional conversion kits in the works.

“At the same time, we continue to expand conversion centres and refuelling infrastructure nationwide,” the President said.

He added that the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects across the country, including 15 CNG mother stations and 86 daughter stations.

Tinubu recalled that in May, he inaugurated four of the projects in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and a facility in Abuja with the capacity to serve 1,000 cars and tricycles as well as 50 trucks and buses daily.

The President also announced that he had directed the rollout of another 500 CNG refuelling stations nationwide, in addition to the 500 stations earlier ordered for deployment this year.

The fresh directive, he said, would bring the planned nationwide network to 1,000 CNG refuelling stations.

“I have also directed the additional rollout of another 500 CNG refuelling stations nationwide in addition to the 500 stations ordered earlier in the year by the Fund, bringing the programme to 1,000 stations across the country,” Tinubu said.

The President stressed that the states have a crucial role to play in reducing transport costs because intra-state transportation is the segment where Nigerians most directly experience the burden of high fares.

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

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

Tinubu said the joint federal-state committee would commence implementation of the agreed measures immediately, as both tiers of government work towards ensuring that lower CNG operating costs translate into cheaper fares for commuters.

He stressed that the responsibility for easing transportation costs required collaboration among the different tiers of government.

Governors fault claim of mismanagement of subsidy removal proceeds

Preceding the governors’ meeting with the President yesterday, they met under the aegis of Nigeria Governors’ Forum (NGF) on Wednesday night where they pledged to collaborate with the private sector to drive down transportation cost taking the CNG advantage.

They countered claims that the sub-nationals had not adequately accounted for their share of the fuel subsidy removal proceeds.

On assumption of office on May 29, 2023, Tinubu declared that “fuel subsidy is gone” in his inaugural address.

According to the Federal Ministry of Finance scorecard presented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, proceeds from subsidy removal between June 2023 and December 2025 amounted to N15.8 trillion.

Out of these, the Federal Government got N5.4 trillion, state governments got N6.5 trillion and local governments received N3.9 trillion.

Bayelsa State Governor Douye Diri, who spoke with reporters on behalf of the forum, said the allegation of fund misuse is false, adding that states have properly accounted for the spending.

He said: “That cannot be true. That cannot be true. But we will leave that debate for another day.”

Diri, who read the communiqué signed by the NGF’s Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, said the governors agreed to work on modalities to improve the financing and adoption of CNG to power vehicles as a measure against rising transportation and food costs.

He said part of the plan is to work with the private sector to improve on the investment and deployment of the CNG with the intention of crashing the prices of goods and services in the country.

The Bayelsa governor said the NGF took the decision after a presentation on the proposed National Affordable CNG Transit Programme (NACTP).

He said: “The proposal envisages state support for CNG vehicle conversions, fleets and enabling infrastructure, alongside fare commitments from participating operators, with an indicative target of reducing passenger fares.”

He noted the initiative’s potential to ease transportation costs, adding that the forum agreed to further consider its financing and implementation framework.

Diri said with the initiative, the debate about the suitability or otherwise of the removal of fuel subsidy will become unnecessary.

He said the rise in costs is also blamed on the increase in transport cost.

Diri added: “Now that the forum is going in league with the private sector to see how we can bring in CNG, it will actually reduce the cost of transportation. You know that gas is cheaper than petrol and others.

“The initiative will have multiplier effect on every other sector and that is because of the removal of fuel subsidy and the impact is expected to be on our people, that is, the very common man that we all talk about.”

On why the governors were interested in crashing the cost of transportation and not food items, Diri said the decision was informed by the realisation that “transportation is key to several other factors.”

He said food sellers always blame transportation cost for their decision to raise prices, adding: “A seller will tell you that he/she move from point A to point B, and the transport cost is XY, and so, the cost of my yam; the cost of my gari, and others have increased. So, as I said earlier, our focus will have a multiplier effect.”

During the meeting, the governors listened to a presentation by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, on opportunities for state participation in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027 scheduled for Lagos. (The Nation)

•President Tinubu (right) with from left: Governors Ahmadu Fintiri (Adamawa); Bassey Otu (Cross River); Umar Namadi (Jigawa); Abdulahi Sule (Nasarawa) and Babagana Zulum . . . yesterday