Nigeria: Tinubu Approves 500 More CNG Stations, Targets Lower Transport Fares From October

Nigerian President Bola Tinubu on Thursday said he had approved the rollout of an additional 500 compressed natural gas (CNG) refuelling stations nationwide as part of efforts to reduce transport costs.

The new stations will supplement 91 certified CNG refuelling stations currently operating under the Presidential CNG Initiative (PCNGI), Tinubu said in a statement.

The president said he had discussed the initiative with members of the Nigeria Governors’ Forum (NGF), which had agreed to take measures to reduce transportation costs by leveraging the lower operating costs of CNG and electric vehicles.

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

“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,” Tinubu said.

The federal and state governments have agreed to establish a joint committee to begin implementing the measures, he added.

Tinubu said intra-state transportation was where Nigerians felt higher transport costs most directly and that state governments had an important role to play in reducing fares.

“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol,” he said.

“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!”

The Nigeria Governors’ Forum said in a communiqué issued after a meeting in Abuja on Wednesday that it was considering a nationwide reduction in transportation fares under a proposed National Affordable CNG Transit Programme (NACTP).

The programme would use the lower operating costs of CNG to provide cheaper public transportation, the forum said.

Tinubu approved the establishment of the Presidential Compressed Natural Gas Initiative in August 2023, following the removal of a costly petrol subsidy that had kept fuel prices artificially low.

The presidency said the initiative was intended to ease the impact of the subsidy removal by reducing energy and transportation costs.