KEY POINTS
• Pi CNG and EV says transport fares are expected to reduce nationwide from October 1.
• States are deploying CNG and electric buses, motorcycles, tricycles and supporting infrastructure.
• Several states still require additional refuelling, charging and conversion facilities to meet the target.
• States are expected to submit priority interventions and establish implementation teams ahead of October 1.
MAIN STORY
Transportation fares are expected to reduce nationwide from October 1 as states expand the deployment of compressed natural gas and electric vehicles, according to the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Pi CNG and EV.
The projection was contained in a communique issued on Thursday after a stakeholders meeting convened to assess progress towards affordable CNG and electric vehicle transportation.
The meeting brought together representatives of state governments, including commissioners of transport, to review deployment across the states and identify measures required to meet the Federal Government’s October 1 target.
The communique said several states had already deployed CNG and electric buses, tricycles and motorcycles, alongside conversion centres, refuelling facilities and charging infrastructure.
It added that commuters using supported clean mobility services in some states were already paying fares significantly below prevailing rates.
Niger has procured 200 CNG buses, with 35 already operational, as well as 11 electric vehicle charging stations.
Abia has deployed 40 electric buses and 20 charging stations and plans to increase its fleet to 100 buses by December.
Ogun has acquired 1,500 electric motorcycles and operates more than 20 battery swapping stations, while Cross River has deployed 720 electric vehicles comprising buses and motorcycles.
Delta has 13 operational conversion centres and four CNG stations, with 50 CNG buses expected to be deployed in the state.
Adamawa has signed an agreement for 2,000 electric tricycles, while Anambra has identified six priority transport corridors and is preparing to train 1,000 youths in vehicle conversion.
Benue has also trained personnel and technicians and established a conversion centre.
THE ISSUES
- The pace of infrastructure deployment remains important to the October 1 target, particularly in states where CNG and electric vehicles are already available but additional refuelling, charging and conversion facilities are still required.
- The availability of cheaper mobility options does not by itself guarantee lower fares across the wider transport system. The initiative wants the lower operating costs of CNG and electric vehicles to result in actual savings for commuters.
- The level of readiness differs across states. While some have vehicles and supporting infrastructure already operating, others are still procuring vehicles, identifying transport corridors or training personnel.
- Expanding the infrastructure needed for CNG and electric mobility will also require greater private sector participation, making investment conditions and coordination between state governments and investors important to the rollout.
WHAT’S BEING SAID
“Several states are already making progress towards meeting the Federal Government’s target through the deployment of CNG and electric mobility solutions.”
Pi CNG and EV communique
“The engagement is to ensure that the lower operating costs of CNG and electric mobility translate into actual savings for commuters.”
Ismaeel Ahmed, Executive Chairman, Pi CNG and EV
“The Federal and state governments are working to make affordable public transportation available to more Nigerians.”
Ismaeel Ahmed, Executive Chairman, Pi CNG and EV
WHAT’S NEXT
States are expected to identify their busiest transport corridors and provide data to guide the deployment of additional CNG infrastructure.
Each state is also expected to submit three priority interventions that can realistically be delivered ahead of the October 1 target.
The states are to establish implementation teams comprising officials from the transport, energy and related sectors to work with Pi CNG and EV. The initiative will assign coordinators to facilitate implementation and monitor progress at state level.
Private sector participation will also be prioritised, with state investment promotion agencies expected to work towards a common framework for attracting investment into CNG and electric vehicle infrastructure.
BOTTOM LINE
The Federal Government is counting on wider CNG and electric vehicle deployment to bring down public transport costs from October 1. The immediate test will be whether states can close remaining infrastructure gaps and whether the resulting lower operating costs are passed on to commuters.
