Atiku’s subsidy pledge: Tinubu mobilises governors to cut transport fares before October 1
By Ishaya Ibrahim
President Bola Tinubu has announced plans by the Federal Government and state governments to reduce transportation costs before October 1.
The president made the announcement after a meeting with the governors of the 36 states of the federation, with both sides agreeing on an October deadline for the reduction of transportation fares.
The move came after the presidential candidate of the African Democratic Congress (ADC) vowed to restore the fuel subsidy if elected.
Tinubu removed the petrol subsidy on May 29, 2023, leading to an increase of more than 500 per cent in the cost of Premium Motor Spirit (PMS), with a ripple effect on food and other prices.
In a statement posted on the president’s official handle, Tinubu said cheaper fuel must translate into cheaper transport fares.
He said: “I am pleased with my discussion with the Governors’ Forum this afternoon. 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.
“The Federal Government is already investing significantly in this energy transition. Through the Presidential CNG Initiative, over 120,000 vehicles have been converted nationwide, with more than 100,000 additional conversion kits in the works. At the same time, we continue to expand conversion centres and refuelling infrastructure nationwide.
“The Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, is currently financing more than 100 gas projects across the country, including 15 CNG mother stations and 86 daughter stations. In May, I commissioned four of these projects in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and an Abuja facility that can serve 1,000 cars and tricycles and 50 trucks and buses a day.
“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.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers. I am encouraged that our Governors are moving to bring these benefits closer to the people they serve.
“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately. A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol.
“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!
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian.”
