President Bola Tinubu has announced a joint Federal and state government initiative to reduce transportation costs by accelerating the adoption of compressed natural gas (CNG) and electric vehicles.
Tinubu said on Thursday that state governors had independently agreed to introduce measures aimed at bringing the benefits of cheaper fuel to Nigerians, particularly through intra-state transportation.
“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 after a meeting with the Nigeria Governors’ Forum.
The Federal Government has so far converted more than 120,000 vehicles to CNG under the Presidential CNG Initiative, while preparations are under way to deploy more than 100,000 additional conversion kits, Tinubu said.
He added that the government was expanding CNG conversion centres and refuelling infrastructure across the country as part of efforts to increase access to cheaper alternatives to petrol.
Tinubu also pointed to investments under the Midstream and Downstream Gas Infrastructure Fund, which he said was supporting more than 100 gas projects nationwide.
According to the president, the projects include 15 CNG mother stations and 86 daughter stations. He said four of the projects were commissioned in May in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and an Abuja facility designed to serve up to 1,000 cars and tricycles and 50 trucks and buses daily.
The president said he had directed the establishment of an additional 500 CNG refuelling stations, taking the nationwide target to 1,000.
“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,” he said.
Tinubu stressed the importance of state governments in reducing transport costs, noting that they have significant control over intra-state transportation, where commuters often experience the impact of rising fares most directly.
“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.
A joint Federal and State implementation committee will be established immediately to coordinate the measures, according to the president.
Tinubu said CNG-powered vehicles could deliver fuel savings of between 60 and 80 per cent compared with petrol-powered vehicles. He said the government’s objective was to ensure that the savings were passed on to commuters through lower transport fares from October 1.
The president called on the Federal Government and state governments to work together and fulfil their respective responsibilities to ensure Nigerians benefit from the initiative.
He said the overriding priority should be “Nigeria First”.
