…Says CNG is Nigeria’s shield against global fuel shocks

President Bola Tinubu has ruled out a return to the petrol subsidy regime, saying Nigeria must instead accelerate the transition to Compressed Natural Gas (CNG) and other cheaper energy alternatives to shield the economy and citizens from global fuel-price shocks.

The President said Nigeria’s status as a gas-rich country provided an opportunity to reduce its exposure to disruptions in global energy markets, which are once again putting pressure on petrol and diesel prices and driving up transportation costs worldwide.

Tinubu, in an update on the National Affordable CNG Transit Programme, Saturday, said his administration would intensify efforts to ensure that the benefits of cheaper energy translated into lower transportation fares for Nigerians.

“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumed trillions of naira and left our economy exposed to every movement in international oil prices, as some have suggested.

“We must accelerate the cheaper alternatives we have been building at home.”

The President’s position comes as the Federal Government and state governments prepare to implement measures aimed at delivering measurable reductions in transportation costs from October 1.

Tinubu said he met with the 36 state governors on August 27, where they agreed on the objective of ensuring that more Nigerians begin to experience lower transport costs from October.

An implementation committee was subsequently established under the auspices of the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.

The committee, working with the Presidential Initiative on CNG and Electric Vehicles (PI-CNG & EV), state governments and other stakeholders, is identifying priority transport corridors, determining appropriate interventions and putting necessary arrangements in place.

Tinubu said the renewed pressure on global energy supplies had made the initiative more urgent.

“​​Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure,” he said.

He said his administration had spent the past three years deliberately building a CNG transportation ecosystem across the country.

According to him, more than 120,000 vehicles have been converted, while Nigeria now has over 400 certified conversion centres and more than 90 CNG refuelling stations, with the figures increasing daily.

The President said the impact of the transition was already being felt in several states, where cheaper energy had resulted in significant reductions in transport fares.

In Borno, CNG-powered and electric public transport services are moving commuters for between N50 and N100 on routes where commercial operators charge between N300 and N600.

In Kaduna, 100 CNG-powered buses providing free transportation on major routes carried about 3.2 million passengers in their first year of operation, saving commuters more than N3.5 billion in transport costs.

Tinubu said CNG buses deployed to Pacesetter Transport in Oyo initially reduced the Lagos-Ibadan fare from about N8,000 to N3,200.

In Adamawa, alternative-energy transit services have cut fares by as much as 50 per cent, from N8,000 to N4,000, while the deployment of 100 CNG buses in Enugu reduced the Enugu-Nsukka fare from N2,500 to N1,500.

In Plateau, government-supported buses carry about 13,000 commuters daily at N200, compared with more than N500 charged by commercial operators.

The President also cited the Federal Capital Territory, where a partnership with the National Union of Road Transport Workers (NURTW) has delivered a 40 per cent reduction in fares on several Abuja routes served by CNG-converted commercial vehicles.

He listed Area 1-Gwagwalada, where fares have fallen from N1,500 to N900; Nyanya, from N700 to N420; and Wuse, from N400 to N240.

On the Suleja-Abuja route in Niger State, passengers now pay N550 compared with about N800, while Abia has deployed 40 electric buses with fares subsidised by 50 per cent.

“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.

The President, however, said more needed to be done, urging governors and state governments to sustain the momentum ahead of October 1.

He called on states to work with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate the infrastructure required to expand alternative-energy transportation.

Tinubu stressed that the central objective must be to ensure that savings generated from cheaper energy are passed on to Nigerians through lower fares.

The President said the Federal Government would continue to support the expansion of CNG infrastructure and access, increase conversion capacity and create an enabling environment for states, transport operators, manufacturers and private investors.

He noted that the transition was already spreading, with Edo having 50 CNG buses in active service, Kano converting more than 1,000 commercial vehicles and Delta, Kwara and Lagos expanding CNG-supported transport services.

Akwa Ibom, he added, had taken delivery of 50 CNG buses ahead of commercial operations.

Tinubu said the government would not allow the current global energy situation to derail its reform agenda, but would instead use Nigeria’s domestic gas resources to build a more resilient transportation system.

“​​Nigeria has the gas. We are building the infrastructure. We are already seeing the savings,” he said.

“Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day.”