Tinubu Rejects Petrol Subsidy Return

President Bola Ahmed Tinubu has rejected calls for a return to the petrol subsidy regime, saying Nigeria must instead accelerate the development of cheaper energy alternatives, including compressed natural gas (CNG), to reduce transportation costs.

Tinubu stated this on Saturday while giving an update on the National Affordable CNG Transit Programme.

The President said the current global energy crisis was putting pressure on petrol and diesel prices and increasing transportation costs worldwide.

He, however, said Nigeria could reduce its exposure to global energy market shocks by taking advantage of its abundant gas resources.

“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumed trillions of naira and left our economy exposed to every movement in international oil prices, as some have suggested,” Tinubu said.

He said the country must instead accelerate the cheaper alternatives being developed locally.

The President said his administration had, over the last three years, invested in building a CNG transportation ecosystem across the country.

According to him, more than 120,000 vehicles have been converted, while the country now has over 400 certified conversion centres and more than 90 CNG refuelling stations.

Tinubu also cited existing examples of lower transportation fares resulting from the deployment of CNG-powered and electric vehicles across several states.

In Borno, he said CNG-powered and electric public transport services were carrying commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.

In Kaduna, 100 CNG-powered buses provide free transportation on major routes and carried about 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion in transport costs.

The President said CNG buses deployed to Pacesetter Transport in Oyo reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.

He also cited fare reductions in Adamawa, Enugu, Plateau, Abuja and Niger as evidence of the potential of alternative-energy transportation to lower costs for commuters.

Tinubu said more still needed to be done, urging states to work with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate the infrastructure required to expand CNG-powered transportation.

He directed the states to maintain momentum towards October 1, when more Nigerians are expected to begin seeing measurable reductions in transportation costs.

“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” the President said.

Tinubu assured that the Federal Government would continue to support the expansion of CNG infrastructure and access, increase conversion capacity and create an enabling environment for states, transport operators, manufacturers and private investors to participate.

He said the objective was to ensure that the savings from cheaper energy translate into lower fares for Nigerians.