October 1 Target: CNG, EV Push Has Started Reducing Transport Fares, Claims Federal Govt

The federal government has said that Nigerians in several states are beginning to pay less for transportation following the expanded deployment of Compressed Natural Gas (CNG) and electric vehicles (EVs) on major routes by states and the federal government.

The reductions, it said, form part of the National Affordable CNG Transit Programme, which aims to ensure that lower operating costs from alternative energy translate into cheaper fares for commuters.

President Bola Ahmed Tinubu, it was recalled, had set October 1 as the target date for Nigerians to start seeing measurable reductions in transportation costs as the Federal Government, State Governments and transport operators deepen adoption of CNG and electric mobility.

The executive chairman of Pi-CNG & EV, Barr. Ismaeel Ahmed, who disclosed this on Wednesday, said the different models being adopted across the country reflect the transport needs and circumstances of individual states.

“There is no single model that will work everywhere,” he said. “Some states are deploying CNG buses, others are using electric buses, taxis or tricycles. What matters is that the lower cost of energy translates into lower transportation costs for Nigerians.”

“For us, that is the real measure,” he added. “If an operator is spending less on energy but the passenger continues to pay the same fare, then our work is not complete,”

Ahmed said in a statement signed by head, Brand and Communications,

Pi-CNG & EV, Onyekachi Eke.

Ahmed said the fare interventions are coming as CNG adoption gathers pace across the country.

According to him, Nigeria is emerging as one of Africa’s fastest-growing CNG markets, with vehicle conversions accelerating and private investment driving the expansion of refuelling and conversion infrastructure.

He said conversion activity is increasing significantly in emerging markets such as Kano and the South-East, as well as in established CNG markets in other parts of the country.

New refuelling stations are also coming onstream regularly as public and private investment in the sector grows.

Pi-CNG & EV is working with industry partners to have at least 150 operational CNG refuelling stations by the end of the year, as part of efforts to keep infrastructure ahead of growing demand.

The Initiative is also following up with State Governments on commitments made under the National Affordable CNG Transit Programme, particularly around priority transport corridors, fleet deployment, conversion infrastructure, refuelling and charging facilities, and measures to ensure that savings from alternative energy are reflected in transport fares.

Barrister Ahmed said the October 1 target should therefore be seen as part of an expanding programme rather than the conclusion of the fare-reduction effort.

“What Nigerians are seeing today is a process that we intend to deepen,” he said. “We have routes where fares have already come down, states preparing to introduce reduced fares, and more vehicles being deployed.”

“The next task is to expand the number of routes, increase refuelling and charging infrastructure and get more vehicles into commercial transportation so that these savings reach many more Nigerians.”

Across the country, different implementation models are emerging: some states are deploying CNG buses, others are using electric buses, taxis and tricycles, while governments invest in refuelling and charging infrastructure and, in some cases, directly subsidise fares.

In Borno State, 500 electric tricycles, 20 electric buses and 150 electric saloon cars and taxis have been deployed, supported by eight stand-alone solar-powered charging terminals. The state is providing heavily subsidised transportation, with fares set at N50 for buses, N100 for taxis and N200 for tricycles. Borno is also developing its CNG infrastructure, with three CNG stations in Maiduguri—one operational and two nearing completion—as well as conversion facilities to support the transition of more vehicles to gas.

In Abia State, 40 electric buses are already providing public transportation at fares subsidised by 50 per cent. Zamfara State is introducing 100 electric taxis, with fares expected to be 40 per cent lower, further expanding the use of electric mobility for affordable public transportation.

The effect of lower energy costs is already visible in Enugu State, where 100 CNG buses operated by FEMADEC on behalf of the State Government serve busy routes, including Enugu–Nsukka, ESUTH–Agbani, Enugu–UNTH, Holy Ghost–Emene and other commercial and residential corridors. The Enugu–Nsukka route, which previously cost commuters between N3,000 and N4,000, was initially reduced to N2,200 and now costs N1,600 on the CNG-supported service. The reduction has also influenced fares charged by other commercial operators on the route, with some lowering fares to about N2,500.

The Federal Capital Territory is recording similar savings. On the Kubwa–Berger route, commuters using CNG buses pay N500 compared with N1,000 on diesel buses, while Apo–Nyanya/Maraba also costs N500 compared with N1,000. Masaka–Berger costs N600 on CNG compared with N1,000, while Berger–Gwagwalada costs N700 compared with N1,200. The FCT fleet is set to increase further, with 26 additional buses expected this week.

In Lagos, commuters are also benefiting from lower fares across several routes. Ikorodu–Fadeyi has moved from N1,200 to N680, while Ikorodu–Maryland has reduced from N1,000 to N570. Ikeja–Obalende has moved from N1,400 to N720, with other routes recording varying levels of reduction.

Other states are at different stages of implementing fare-reduction plans. In Akwa Ibom, proposed fares across 30 routes represent reductions of 50 per cent. Uyo–Ikot Ekpene, for instance, is proposed to reduce from N1,300 to N650, Uyo–Eket from N2,500 to N1,250, and Uyo–Oron from N3,000 to N1,500. In Edo State, proposed fares on several routes also represent reductions of 50 per cent. Benin–Auchi is proposed to move from N8,000 to N4,000, while Kingsquare–Ugbowo–Oluku would reduce from N600 to N300.

Proposed interventions in Delta, Jigawa, Ogun and Oyo States are also expected to bring down transport costs. The Warri–Asaba CNG service in Delta, for example, is proposed at N4,900 compared with the current N7,000, while Dutse–Kano in Jigawa is proposed at N2,000 compared with N3,500 currently. In addition to its CNG programme, Delta State has developed 22 EV charging stations, providing infrastructure for the expansion of electric mobility.

In Kaduna State, the intervention has taken another form, with 100 CNG buses providing free transportation on major routes. The buses carried about 3.2 million passengers in their first year of operation, with estimated savings to commuters exceeding N3.5 billion.

Niger State is also expanding its alternative-energy transport programme. CNG-supported transportation between Suleja and Abuja is already providing cheaper travel for commuters, while the state continues to develop its CNG and electric mobility infrastructure.

In Ebonyi State, the State Government has acquired luxury buses as part of measures to cushion transportation costs for civil servants. Pi-CNG & EV is also working with the state to explore opportunities for CNG and electric mobility deployment and the infrastructure required to support them. Beyond existing services, Pi-CNG & EV is deploying another batch of buses that will operate with demonstrable fare reductions on designated routes.

A total of 61 buses in the current deployment are designated for commercial operations, including 13 each for the FCT, Kano and Lagos; five each for Delta, Kaduna and Katsina; three for Enugu; and two each for Borno and Niger. The new deployments are expected to increase the number of routes on which commuters can directly benefit from the lower operating costs of alternative-energy vehicles.

Pi-CNG & EV, he added, will continue working with State Governments, transport unions, operators, financial institutions and private investors to expand CNG refuelling and EV charging infrastructure, increase the number of alternative-energy vehicles in public transportation and ensure that savings from cheaper energy are reflected in transport fares.

“For the Initiative, the ultimate measure of progress is not simply the number of vehicles converted, buses deployed or stations built, but whether Nigerians can feel the difference in the cost of their everyday journeys,” he said.