Tinubu orders 500 more CNG stations, targets lower transport fares nationwide

President Bola Tinubu has directed the rollout of 500 additional Compressed Natural Gas (CNG) refuelling stations across Nigeria as part of efforts to reduce transportation costs following the removal of the petrol subsidy.

The additional stations will bring the planned number of CNG refuelling stations under the federal government’s programme to 1,000 nationwide.

Mr Tinubu disclosed this on Thursday after a meeting with the Nigeria Governors’ Forum, saying the governors had agreed to take immediate measures to reduce transportation costs in their respective states.

He said the focus would be on expanding the use of CNG and electric vehicles, particularly for intra-state transportation, where Nigerians have continued to bear the brunt of rising fares.

“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,” Mr Tinubu said in a statement personally signed by him and posted on his X handle.

The president said the federal and state governments had agreed to establish a joint committee to begin implementing measures aimed at reducing transport costs.

He said the committee would work to ensure that savings from cheaper alternative energy sources translate into lower fares for commuters.

CNG expansion

According to Mr Tinubu, more than 120,000 vehicles have so far been converted to CNG nationwide under the Presidential CNG Initiative, while more than 100,000 additional conversion kits are being processed.

He said the federal government was also expanding conversion centres and refuelling infrastructure across the country to support the growing number of CNG-powered vehicles.

The president said the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide. They include 15 CNG mother stations and 86 daughter stations.

Four of the projects were commissioned in May in Lagos, Abuja and Owerri, according to Mr Tinubu.

Among them was a 15-station CNG refuelling network in Lagos and a facility in Abuja capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.

Mr Tinubu said the government had earlier ordered 500 CNG stations through the Midstream and Downstream Gas Infrastructure Fund.

He has now directed the rollout of another 500 stations, bringing the planned network to 1,000 stations across the country.

The president said the expansion was particularly important for intra-state transportation because that was where the high cost of transport was most directly felt by Nigerians.

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He said CNG-powered vehicles could spend between 60 and 80 per cent less on fuel than petrol-powered vehicles.

The expected savings, he said, should be reflected in transport fares from October 1.

Mr Tinubu urged federal and state authorities to work together to ensure that the lower operating costs associated with CNG translate into cheaper transportation for Nigerians.

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