The Federal Government and state governors have agreed to leverage cheaper Compressed Natural Gas and electric vehicles. They aim to reduce the cost of intra-state transport from October 1.
President Bola Ahmed Tinubu disclosed this after his meeting with APC governors earlier Thursday. He acknowledged the rising cost of intra-state transportation. Tinubu said he has directed an additional rollout of another 500 CNG refuelling stations across the country. This is in addition to the 500 stations ordered earlier this year. The programme now totals 1,000 stations.
Joint committee to implement measures
According to him, the Federal and state governments agreed to set up a joint committee. The committee will begin implementing the measures immediately.
“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,” Tinubu said.
“I am pleased with my discussion with the Governors’ Forum this afternoon,” he added. “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.”
Federal Government investing in energy transition
The Federal Government is already investing significantly in this energy transition. Through the Presidential CNG Initiative, over 120,000 vehicles have been converted nationwide. More than 100,000 additional conversion kits are in the works.
The Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, is currently financing more than 100 gas projects across the country. These include 15 CNG mother stations and 86 daughter stations.
“In May, I commissioned four of these projects in Lagos, Abuja and Owerri,” Tinubu said. “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.”
Goal: Nigerians to benefit from October 1
The president added that governors are moving to bring these benefits closer to the people they serve. 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,” he said. “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. Nigeria First.”
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