FG, States Move to Cut Transport Fares With CNG, Electric Vehicles
The Federal Government and state governors have agreed to work together to reduce transportation costs nationwide by leveraging the cheaper operating costs of compressed natural gas (CNG) and electric vehicles.
The agreement followed discussions between the Federal Government and the Nigeria Governors’ Forum, with a joint Federal and State committee to be established to begin implementing measures aimed at lowering intra-state transportation fares.
According to the Federal Government, a vehicle powered by CNG spends between 60 and 80 per cent less on fuel than a petrol-powered vehicle.
The government said the objective is for Nigerians to begin benefiting from the savings through reduced transport fares from October 1.
The government said it was already investing heavily in the country’s energy transition through the Presidential CNG Initiative, under which more than 120,000 vehicles have been converted nationwide, while over 100,000 additional conversion kits are being processed.
It added that conversion centres and CNG refuelling infrastructure were also being expanded across the country.
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The Federal Government further disclosed that, through the Midstream and Downstream Gas Infrastructure Fund, it is financing more than 100 gas projects nationwide, including 15 CNG mother stations and 86 daughter stations.
It said four of the projects were commissioned in May across Lagos, Abuja and Owerri, including a 15-station CNG refuelling network in Lagos and a facility in Abuja capable of serving 1,000 cars and tricycles and 50 trucks and buses daily.
The government also announced plans for an additional 500 CNG refuelling stations nationwide, on top of the 500 stations previously ordered by the Fund earlier in the year, bringing the planned network to 1,000 stations.
The government noted that intra-state transportation was where Nigerians experienced the cost of mobility most directly, stressing that state governments had significant influence over fares within their jurisdictions.
It expressed optimism that the governors’ decision to take immediate measures would help bring the benefits of cheaper and cleaner energy closer to citizens.
The government said all tiers of government must continue to work together to ensure that savings from cheaper fuel translate into lower transportation costs for Nigerians.
“Cheaper fuel should result in cheaper fares,” the government stated, reaffirming its commitment to the “Nigeria First” agenda.
By PRNigeria
