Nigeria targets lower transport fares as CNG use expands

Nigerian President Bola Ahmed Tinubu says the federal government and state governors are working to reduce transport fares nationwide by taking advantage of lower fuel costs associated with compressed natural gas (CNG) and electric vehicles.

Following discussions with the Nigeria Governors' Forum on Thursday, Tinubu said governors had agreed to take immediate steps to cut transportation costs in their respective states.

Tinubu said the initiative would focus particularly on the cost savings offered by CNG and electric vehicles, as the government accelerates the country's transition to alternative energy sources.

Through the Presidential CNG Initiative, more than 120,000 vehicles have so far been converted to CNG nationwide, while more than 100,000 additional conversion kits are being prepared, according to the president.

The government is also expanding conversion centers and refueling infrastructure across the country.

Through the Midstream and Downstream Gas Infrastructure Fund, more than 100 gas projects are currently being financed, including 15 CNG mother stations and 86 daughter stations.

Tinubu said four of the projects were commissioned in May in Lagos, Abuja and Owerri.

They included a 15-station refueling network in Lagos and a facility in Abuja capable of serving up to 1,000 cars and tricycles, as well as 50 trucks and buses, each day.

The president has also directed the rollout of an additional 500 CNG refueling stations.

Combined with 500 stations previously ordered by the fund, the program is expected to deliver 1,000 CNG stations nationwide.

Tinubu said reducing intra-state transport costs was particularly important because this is where Nigerians directly experience the impact of fuel prices, with state governments playing a key role in determining local transport costs.

The federal and state governments have agreed to establish a joint committee to begin implementing measures aimed at passing CNG savings on to commuters.

According to Tinubu, vehicles running on CNG can spend 60% to 80% less on fuel than comparable petrol-powered vehicles.

The government's goal is for Nigerians to begin benefiting from those savings through lower transport fares starting October 1.