State governments across Nigeria are adopting different measures to reduce transportation costs through the Compressed Natural Gas initiative as the Federal Government targets measurable reductions in fares from October 1.
While some states have introduced subsidised CNG-powered transport services, commercial operators in others are facing challenges including inadequate refuelling infrastructure, high vehicle conversion costs and long queues at existing CNG stations.
The uneven rollout has raised concerns about the ability of states and transport operators to deliver cheaper fares nationwide within the timeline set by the Federal Government.
President Bola Tinubu, after meeting with the 36 state governors on August 27, announced the establishment of an implementation committee for the National Affordable CNG Transit Programme under the Nigeria Governors’ Forum. The committee is chaired by Kwara State Governor AbdulRahman AbdulRazaq.
In an update on Saturday, Tinubu urged state governments to collaborate with transport unions and commercial operators, support vehicle conversion and fleet deployment, and ensure that savings from cheaper energy are reflected in lower fares for commuters.
According to the Presidency, more than 120,000 vehicles have so far been converted to CNG, while over 400 certified conversion centres and more than 90 CNG refuelling stations are operating across the country.
However, transport operators in some states said the available infrastructure remains insufficient to support widespread conversion and refuelling.
The problem is particularly evident in areas where motorists already using CNG reportedly spend several hours waiting to refuel, raising concerns about whether the existing infrastructure can cope with increased demand.
The Federal Government’s plan is expected to see cheaper energy translate into reduced transportation costs for commuters, although the extent and timing of the reductions will vary across states depending on their level of CNG adoption and available infrastructure.