Key Points
- TDF says state governors’ CNG investments show growing support for cheaper transportation.
- The group says the PCNGI has delivered 90 certified filling stations and over 120,000 vehicle conversions.
- It urged governments to prioritise CNG and electric vehicles over petroleum subsidies.
Main Story
The Democratic Front (TDF) says state governors’ decision to invest in Compressed Natural Gas (CNG) reflects growing support for President Bola Tinubu’s push to reduce transportation costs.
The pro-democracy think-tank said the governors’ move demonstrated their readiness to work with the Federal Government to expand access to CNG as an alternative to conventional petroleum products.
TDF made the position known in a statement issued on Wednesday in Abuja by its Chairman, Danjuma Muhammad, and Secretary, Wale Adedayo.
The group said the development was the clearest indication yet of state-level support for efforts to provide Nigerians with cheaper transportation options.
It recalled that Tinubu launched the Presidential Compressed Natural Gas Initiative (PCNGI) in August 2023 following the removal of petroleum subsidy, describing the initiative as a measure aimed at reducing energy and transportation costs.
According to TDF, the initiative has so far produced 90 certified CNG filling stations, more than 450 conversion centres across 23 states and over 120,000 vehicle conversions. It added that another 100,000 CNG conversion kits were being deployed across the country.
The group said commercial transport operators in Abuja, Lagos, Ibadan, Port Harcourt and Enugu had increasingly shifted from Premium Motor Spirit (PMS) to CNG, while a significant number of heavy-duty interstate transporters had also adopted CNG as an alternative to Automotive Gas Oil (AGO).
TDF acknowledged that CNG penetration remained slow but said the governors’ decision could accelerate adoption across the country.
The Issues
The development places state governments alongside the Federal Government in efforts to expand CNG use in the transport sector.
TDF argued that wider adoption of alternative fuels could help reduce transportation costs by providing motorists with an alternative to conventional petroleum products.
The group also linked the development to the wider debate over petroleum subsidies, arguing that investment in alternative energy sources would provide a more sustainable response to transportation costs.
What’s Being Said
“This is a remarkable indication that the President’s commitment to providing Nigerians with a cheaper alternative source of energy to cushion the biting effect of petroleum subsidy removal on the masses, has unwittingly triggered a positive transformation in the transportation sector.” – TDF
“This collective decision by the State Governors to explore CNG in addressing the rising cost of transportation, have once again, validated President Tinubu’s position that the solution to high cost of transportation is not in the reintroduction of another opaque and disastrous petroleum subsidy regime.” – TDF
What’s Next
TDF welcomed the establishment of an implementation committee to oversee joint Federal and State Government measures to reduce transportation costs from October 1.
The group urged Nigerians to support the CNG initiative and called for faster development of cheaper energy sources, including CNG and electric vehicles.
Bottom Line
TDF says the governors’ move to invest in CNG could accelerate the transition to cheaper transport fuel and strengthen collaboration between state and Federal governments on reducing transportation costs.
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