• President targets lower transport fares through use of CNG/Electric vehicles from October 1
By Ayorinde Oluokun
President Bola Ahmed Tinubu has rejected suggestion for reintroduction of fuel subsidy as a means of cushioning hardship on Nigerians from the rising price of petrol.
The President said this in obvious reply to call by former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar for return of petrol subsidy to assuage the hardship being faced by Nigerians as a result of the rising price of premium motor spirit, otherwise known as petrol.
Atiku, who had made return of petrol subsidy one of his key campaign points for the 2027 president election made the call at a press conference in Abuja on Friday.
But President Tinubu, in a post on his social media handles on Saturday, rejected the suggestion.
He insisted that the answer to the current high price of petrol is not a return to ruinous fuel subsidy, but continuous investment in Compressed Natural Gas (CNG) and electric-powered public transport system to cushion transportation costs.
The President noted that a vehicle powered by CNG spends between 60 and 80 per cent less on fuel than a petrol-powered vehicle.
He also disclosed that more than 120,000 vehicles had been converted to CNG nationwide, with more than 100,000 additional conversion kits in the pipeline as part of his administration’s investment in the CNG ecosystem across Nigeria in the past three years.
The President added that he has ordered the rollout of an additional 500 CNG refuelling stations, which would bring the number of the stations to 1,000 when added with the 500 previously ordered.
According to him, while Nigeria as a country cannot control events in the global energy market, it can lower its exposure by investment in alternation energy system.
“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumes trillions of naira and left our economy exposed to every movement in international oil prices as some have suggested. We mus accelerate the cheaper alternatives we have been building at home with urgency,” Tinubu said.
The President also recalled that he met with members of the Nigeria Governors’ Forum on 27 August during which they agreed on a clear objective that from October 1, more Nigerians would begin to see measurable reductions in transportation costs.
“An implementation committee for the National Affordable CNG Transit Programme was subsequently established under the auspices of the Nigeria Governors’ Forum @NGFSecretariat, chaired by the Governor of Kwara State and Chairman of the Forum, AbdulRahman AbdulRazaq.
“I am aware of the considerable work already underway by the committee, PI-CNG & EV, the States, and other critical stakeholders to identify priority transport corridors, determine appropriate interventions, and put the necessary arrangements in place,” the President said.
He added that the work of the committee has become even more urgent in the face of the current global energy crisis.
The President reiterated his promise that Nigerians should begin to see measurable reductions in transportation costs from October 1, following a meeting with the governors of the 36 states on August 27.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” Tinubu said. We have agreed that cheaper fuel should result in cheaper fares.”
He also cited examples of some states which has reduced transport costs as a result of investments in the CNG and electric vehicles.
The President noted that in Borno State, CNG-powered and electric public transport services are carrying passengers for between ₦50 and ₦100, compared with commercial fares of between ₦300 and ₦600.
He also noted that in Oyo State, CNG buses deployed by Pacesetter Transport brought down Lagos-Ibadan fare down from about ₦8,000 to ₦3,200.
Tinubu also said in Adamawa, fares on some routes have reduced by as much as 50 per cent as a result of deployment of buses powered by CNG.
The President added that in Enugu, where 100 CNG buses have been deployed, the Enugu-Nsukka fare has fallen from ₦2,500 to ₦1,500, while government-supported buses in Plateau are charging commuters ₦200 compared with more than ₦500 on commercial services.
He also said commuters in Abuja are also befitting from cheap fares through on some routes through CNG-converted commercial vehicles being operated in partnership with the National Union of Road Transport Workers.
Tinubu further added that passengers on the Suleja-Abuja route now pay ₦550, compared with about ₦800, while Abia has deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” the President said.
Tinubu more state are investing in CNG vehicles to lessen transportation costs for their people.
He said Edo has 50 CNG buses in active service, while Kano has converted more than 1,000 commercial vehicles and is expanding its conversion and refuelling infrastructure.
The President added that Delta, Kwara and Lagos are also expanding CNG-supported transport services, while Akwa Ibom has taken delivery of 50 CNG buses ahead of launch of their use for commercial operations.
The President appealed state governments to partner with transport unions and commercial operators to accelerate vehicle conversion, fleet deployment and the development of supporting infrastructure.
The renewed dispute over fuel subsidy has become an emerging issue in the run-up to the 2027 presidential election.
Atiku has promised a return of petroleum subsidy if elected in 2027 to reduce hardship on Nigerians.
The former Vice President however said his proposal from the former import-subsidy regime.
But the Tinubu administration has maintained that reversing the subsidy removal would undermine reforms in the petroleum sector.
“The Federal Government will continue to support the scaling of CNG infrastructure and access, expand conversion capacity, and create the enabling environment for States, transport operators, manufacturers and private investors to participate,” he said.
“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings,” President Tinubu insisted.
