Inside Tinubu’s Plan to Cut Transport Fares
Transportation costs may begin to ease from October 1 if a new Federal Government plan to cut the cost of running commercial vehicles translates into lower fares for commuters. President Bola Ahmed Tinubu has announced plans to reduce intra-state transportation costs by accelerating the adoption of Compressed Natural Gas (CNG) and electric vehicles, while working […]
If President Bola Ahmed Tinubu’s plan to cut transportation fares through cheaper fuel sources becomes reality, commuters across Nigeria may begin to see significant savings from October 1. The Federal Government’s strategy hinges on two key pillars: accelerating the adoption of Compressed Natural Gas (CNG) vehicles and electric options, while working with state governments to ensure any cost reductions are passed onto passengers.
This comes in the wake of high transport fares since the removal of petrol subsidy in May 2023. Tinubu highlighted that more than 120,000 vehicles have already been converted to CNG, with another 100,000 conversion kits in the pipeline. The administration aims to build a robust infrastructure to support CNG, setting its sights on establishing 1,000 CNG refuelling stations nationwide, including 15 mother stations and 86 daughter stations already operational in key cities.
However, the success of this plan largely depends on whether the fuel cost savings are effectively translated into lower transportation fares. This will require measures to ensure operators do not absorb all the savings, including the availability and affordability of CNG conversion kits and the timely expansion of the CNG station network.
Critics will be watching closely on October 1 to see if the government’s promise of cheaper fares holds true, as the issue extends beyond transport to broader economic implications for workers, traders, and businesses.
Written by urgent.news from Daily Trust's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
