Key points
- The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) has backed plans by President Bola Tinubu and state governors to reduce transport fares.
- The initiative said lower CNG costs should translate into cheaper fares for Nigerians who rely on public transportation.
- It called for stronger collaboration among governments, transport operators, unions, financial institutions and other stakeholders to expand the benefits of the CNG programme.
Main story
The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) has backed plans by President Bola Tinubu and state governors to reduce transportation fares by leveraging the lower cost of Compressed Natural Gas (CNG).
Mr Ismaeel Ahmed, Executive Chairman and Chief Executive Officer of Pi-CNG & EV, said this on Friday while reacting to the agreement between the President and the Nigeria Governors’ Forum (NGF).
Ahmed said converting the cost advantage of CNG into lower transport fares would ensure that government investments in the gas ecosystem translated into direct benefits for Nigerians.
The reaction followed Tinubu’s disclosure that state governors had agreed to take measures to reduce transportation costs in their respective states by leveraging CNG and electric vehicles.
The President said the Federal Government had invested significantly in the transition to alternative fuels, with more than 120,000 vehicles already converted to CNG nationwide and more than 100,000 additional conversion kits in the pipeline.
He also said the government was expanding the infrastructure needed to support the transition, including conversion centres and CNG refuelling stations across the country.
According to Tinubu, more than 100 gas projects were being financed through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), comprising 15 CNG mother stations and 86 daughter stations.
He added that the Federal Government had directed the rollout of another 500 CNG refuelling stations, which would bring the planned nationwide network to 1,000 stations.
Ahmed described the governors’ decision as an important step toward ensuring that investments in the CNG ecosystem produce tangible benefits for citizens.
He said stronger cooperation among the Federal Government, state governments, private-sector operators, transport unions and financial institutions would be necessary to translate the initiative into lower fares across the country.
“What we need to move the impact further is deeper collaboration among the Federal Government, states, the private sector, transport unions and operators, financial institutions, development partners and other critical stakeholders.” — Ismaeel Ahmed, Executive Chairman and CEO, Pi-CNG & EV
Ahmed said state government support for CNG conversion programmes, vehicle fleets and related infrastructure would be important in ensuring that the savings generated from cheaper fuel were reflected in passenger fares.
He stressed that the benefits of the transition should not be limited to vehicle owners, but should also reach Nigerians who depend on public transportation for their daily activities.
“At Pi-CNG & EV, we look forward to working with the states and all stakeholders to make this a reality across the country.” — Ismaeel Ahmed, Executive Chairman and CEO, Pi-CNG & EV
The renewed collaboration between the Federal Government and state governments is expected to build on existing investments in CNG conversion and refuelling infrastructure as efforts continue to reduce the cost of transporting people and goods across Nigeria.
The issues
The plan seeks to ensure that lower fuel costs associated with CNG translate into cheaper public transportation for Nigerians.
However, achieving this will depend on the expansion of conversion facilities and refuelling infrastructure, as well as cooperation among government agencies, state authorities, transport operators and other stakeholders.
What’s being said
“What we need to move the impact further is deeper collaboration among the Federal Government, states, the private sector, transport unions and operators, financial institutions, development partners and other critical stakeholders.” — Ismaeel Ahmed, Executive Chairman and CEO, Pi-CNG & EV
“At Pi-CNG & EV, we look forward to working with the states and all stakeholders to make this a reality across the country.” — Ismaeel Ahmed, Executive Chairman and CEO, Pi-CNG & EV
What’s next
The Federal Government and state governments are expected to work together on measures that will translate CNG cost savings into lower transportation fares from Oct. 1.
Pi-CNG & EV is also expected to continue working with state governments and other stakeholders on CNG conversions, vehicle fleets and supporting infrastructure.
Bottom line
Pi-CNG & EV has backed the Federal Government and governors’ plan to reduce transport fares through cheaper CNG, saying stronger collaboration and continued infrastructure investment will be needed to ensure the savings reach ordinary public transport users.
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