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Transport costs: FG okays 500 more CNG stations

By Cross Udo, Abuja

President Bola Tinubu has ordered the rollout of an additional 500 compressed natural gas (CNG) refuelling stations across the country as part of measures to reduce transportation costs.

The latest directive brings the number of CNG stations planned under the Federal Government’s Presidential CNG Initiative to 1,000.

Tinubu announced the expansion on Thursday following a meeting with state governors, who he said had agreed to take immediate steps to reduce the burden of transportation on residents.

In a statement personally signed and posted on his X handle after the meeting, the President said the governors had resolved to explore cheaper energy alternatives, particularly CNG and electric vehicles, to bring down transport expenses in their states.

“The governors have, on their own initiative, resolved to take immediate measures to bring down the cost of transportation in their states, with a strong focus on leveraging the cost benefits of CNG and electric vehicles,” he said.

Tinubu said the Federal Government was also accelerating investment in infrastructure required to support the transition from petrol-powered transportation to alternative energy sources.

He disclosed that more than 120,000 vehicles had already been converted to CNG nationwide, while over 100,000 additional conversion kits were being processed.

“The Federal Government is already investing significantly in this energy transition,” the President said, adding that conversion centres and refuelling facilities were being expanded across the country.

Tinubu further disclosed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) was financing more than 100 gas projects nationwide, including CNG mother and daughter stations.

He said four projects were commissioned in May in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles and 50 trucks and buses daily.

“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 President said expanding the refuelling network was particularly important for intra-state transportation, where commuters experience the impact of high fuel prices most directly.

“I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” he said.

Tinubu also announced the establishment of a joint committee involving the Federal Government and the states to begin implementing measures aimed at reducing transport fares.

He said the lower operating costs associated with CNG should translate into cheaper fares for commuters, rather than merely reducing expenses for transport operators.

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

He set October 1 as the target for Nigerians to begin benefiting from the expected savings through reduced transport 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!” he said.

The President called on the Federal and state governments to coordinate their efforts to ensure that the expansion of alternative-fuel infrastructure produces tangible relief for commuters.

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

The expansion forms part of the administration’s broader effort to increase the use of CNG and other alternative energy sources in the transport sector following the removal of petrol subsidy.

The initiative is intended to provide motorists and transport operators with cheaper fuel options while reducing dependence on petrol and cushioning the impact of high transportation expenses on households and businesses.

 

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