Tinubu targets lower transport fare from October, approves rollout of 500 CNG stations 

Tinubu approves rollout of 500 CNG stations, targets lower transport fares from October

President Bola Tinubu has ordered the rollout of an additional 500 compressed natural gas (CNG) refuelling stations nationwide.

In a statement he personally signed on Thursday, Tinubu said he was pleased with his discussion with members of the Nigeria Governors Forum (NGF) on the initiative to reduce transport fares.

President Bola Tinubu

The president said the NGF, on their own initiative, resolved to take measures to reduce the cost of transportation “with a strong focus on leveraging the cost benefits of CNG and electric vehicles”.

Tinubu said the federal government is currently financing more than 100 gas projects, including 15 CNG mother stations and 86 daughter stations.

The president said the federal and state governments have agreed to set up a joint committee to “begin implementing these measures immediately”.

“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,” the statement reads.

“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.

“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately. A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol.

“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!”

“Each tier of government must keep doing its part and work together for the benefit of every Nigerian.”

In a communiqué issued after a meeting members of the NGF held on Wednesday in Abuja, the forum said it is considering reducing transportation fares nationwide under the proposed national affordable CNG transit programme (NACTP).

The forum said the initiative will leverage the lower operating costs of CNG to provide cheaper public transportation for Nigerians

In August 2023, Tinubu approved the establishment of the presidential compressed natural gas initiative (PCNGI).

The presidency had said the initiative was approved to ease the impact of the petrol subsidy removal on Nigerians by reducing energy costs.