The Federal Government has donated over 64 Compressed Natural Gas (CNG) buses to representatives of the Trade Union Congress (TUC), the Nigerian Labour Congress (NLC), and the National Association of Nigerian Students (NANS) for commuter service.
This was disclosed in a statement signed by Bayo Onanuga, Special Adviser to the President (Information & Strategy), on Sunday, September 29, 2024.
The presidency believes the buses will significantly reduce transportation costs in the country, bringing hope for a more affordable and efficient public transport system in Nigeria.
The handover of the buses took place on Sunday at the State House Conference Centre, Abuja, as part of activities marking Nigeria’s 64th independence anniversary. The event was attended by the Coordinating Minister of the Economy and Minister of Finance, Wale Edun; the Minister of Information and National Orientation, Mohammed Idris; the Minister of Budget and Economic Planning, Abubakar Bagudu; and the Minister of State for Youth Development, Ayodele Olawande.
Efficient Transportation
According to the statement, Edun described the distribution of the buses as fulfilling President Bola Tinubu’s promise to provide affordable and efficient transportation to support Nigerians after the removal of fuel subsidies under the Presidential Initiative on Compressed Natural Gas (PCNGi).
He expressed the view that this initiative will alleviate the burden on the poor and vulnerable and support macroeconomic reforms that would position the country on the path to economic stability.
The Minister further explained that the gesture marks the beginning of a broader national rollout, with plans to distribute over 500 CNG buses and 100 electric vehicles in the initial phase.
He stressed that the CNG initiative aligns with Nigeria’s commitment to cleaner energy while leveraging its energy resources for industrialization.
He said, “Today marks another critical milestone in the policies of President Tinubu. It is a transition to cleaner fuel. It is for Nigerians. The emphasis is on mass transit. There is a focus on intervening on the side of workers so that they have cheaper transport to cope with rising prices.
“We’ve had an initial spike in inflation; now it has peaked, and it is coming down. Mr. President and the whole team are determined to ensure that we keep inflation coming down, and this is one of the major ways.”
The Coordinating Minister of the Economy said motorists can now pay as low as N15,000 to fill a tank instead of N50,000 or more.
“Today, it is CNG. Tomorrow, it will be helping farmers cope with the remainder of the wet season planting and then the dry season planting, starting from November, with fertilizer, inputs, seeds, and herbicides.
“This is all to get prices down and get the economy moving again,” he said.
More Insights
The Secretary-General and Chief Executive of TUC, Comrade Nuhu Toro; NANS president, Comrade Lucky Emonefe; and the Head of the International Desk at NLC, Comrade Uche Ekwe, commended President Tinubu for the gesture while calling for more CNG buses to be made available to the public.
“This move is a significant step in alleviating the economic burden of Nigerian workers,” the NANS representative was quoted as saying.
The NLC representative noted that the benefits of the CNG buses would become more apparent once more buses are deployed across Nigeria.
“If we get more buses, the effect will translate immediately to Nigerians. If people start using these buses, they will promote it in their communities,” he said.
Michael Oluwagbemi, Programme Director/Chief Executive of PCNGi, stated that since its establishment one year ago, over 125 conversion centers have been established, compared to the initial seven.
He revealed that investment in the sector has exceeded $175 million, with 12 new mother stations commissioned and 75 more under construction.
What You Should Know
The Presidential Compressed Natural Gas Initiative (PCNGi) launched its Transport Fare Drop Programme in Abuja on Friday, aiming to promote CNG as a cleaner, more affordable fuel alternative while reducing transportation costs.
This effort included the signing of an MOU between PCNGi and the National Union of Road Transport Workers (NURTW) to convert vehicles operating on the Abuja-Itakpe Station to Adavi route to CNG, with a target of achieving a 30-40% fare reduction.
Additionally, the statement revealed that on Monday, September 30, PCNGi will sign an agreement with the Nigeria Police Trust Fund (NPTF) to operationalize the Nigerian Police CNG Conversion Programme, focusing on training police cadets to manage strategic CNG conversion centers established by the NPTF.
On Wednesday, October 2, PCNGi will launch the Kogi State Conversion Incentive Programme, handing over CNG buses to the state’s mass transit entity for routes to Abuja, and inaugurating three new CNG conversion sites in Kogi.
The programme will also expand to Ekiti State next week, where CNG buses will be handed over to the state’s mass transit system, alongside the inauguration of four additional CNG conversion sites.
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