President Bola Tinubu has approved the deployment of 500 additional compressed natural gas (CNG) refuelling stations across Nigeria as part of efforts by the Federal Government and state governments to bring down transportation costs.
Tinubu disclosed this in a statement he personally signed on Thursday following discussions with members of the Nigeria Governors Forum (NGF) on measures aimed at reducing transport fares.
According to the President, the governors had independently agreed to pursue initiatives that would lower transportation expenses, particularly by taking advantage of the cheaper operating costs associated with CNG and electric vehicles.
Tinubu said the Federal Government was already supporting more than 100 gas-related projects, comprising 15 CNG mother stations and 86 daughter stations.
He said the Federal and state governments would establish a joint committee to ensure immediate implementation of the measures.
“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.
The President noted that intra-state transportation remained a major area where Nigerians directly experienced the burden of high transport costs, adding that state governments had an important role to play in addressing the challenge.
“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.”
The development followed a meeting of the NGF in Abuja on Wednesday, after which the governors said they were considering a nationwide reduction in transport fares through the proposed National Affordable CNG Transit Programme (NACTP).
The forum said the programme would rely on the lower running costs of CNG-powered vehicles to make public transportation more affordable.
The latest move is part of the Federal Government’s broader CNG programme, which dates back to August 2023 when Tinubu approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI).
The Presidency had said the initiative was designed to cushion the effect of petrol subsidy removal by lowering energy and transportation costs.
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