Tinubu Forecloses Return To Fuel Subsidy, Tasks States To Deliver Cheaper Transport By October

President Bola Tinubu has ruled out the possibility of reinstating fuel subsidies in Nigeria, emphasizing that the country cannot afford the costly regime that has burdened its economy in the past. Instead, he highlighted the progress made in transitioning to a National Affordable CNG Transit Programme, which has already seen more than 120,000 vehicles converted to compressed natural gas (CNG) and more than 400 certified conversion centres established across the nation.

Tinubu announced that state governments must strive to deliver cheaper transportation by October this year, stating that Nigerians should begin to see reductions in transportation costs from that date. He further established an implementation committee under the Nigeria Governors' Forum, chaired by Governor AbdulRahman AbdulRazaq, to tackle the urgent task of identifying priority transport corridors and implementing necessary interventions.

The president cited several examples of states making significant strides toward cheaper transportation. Borno, Kaduna, Oyo, Adamawa, Enugu, and Plateau have demonstrated substantial savings by deploying CNG-powered and electric public transport services, with fares ranging from N50 to N100 for commuters, while commercial operators charge significantly higher rates.

In Kaduna, 100 CNG-powered buses have carried over 3.2 million passengers, saving commuters more than N3.5 billion in transport costs. Oyo's CNG buses reduced the Lagos-Ibadan fare from about N8,000 to N3,200, while in Enugu, the Enugu-Nsukka fare dropped from N2,500 to N1,500.

Tinubu commended the efforts of governors and state governments that have moved quickly, urging the Federal Government to continue supporting the scaling of CNG infrastructure and the expansion of conversion capacity. He emphasized that Nigeria has the gas and is building the necessary infrastructure, and now it is crucial to move faster to ensure that Nigerians experience the savings in transportation costs.