News Investigators/ The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) has backed moves by President Bola Tinubu and state governors to reduce transport fares by leveraging cheaper CNG.
Pi-CNG & EV Executive Chairman and Chief Executive Officer, Ismaeel Ahmed, made this known on Friday while reacting to the development.
The initiative said translating the lower cost of CNG into reduced transportation fares would ensure that government investments in the gas ecosystem directly benefit Nigerians.
President Bola Tinubu, following discussions with the Nigeria Governors’ Forum (NGF), said governors had resolved to take measures to reduce transportation costs in their respective states.
He said the measures would focus on leveraging the cost advantages of Compressed Natural Gas (CNG) and electric vehicles.
Tinubu said the Federal Government had invested significantly in the transition, with more than 120,000 vehicles converted to CNG nationwide.
He added that more than 100,000 additional conversion kits were in the pipeline, while conversion centres and CNG refuelling infrastructure continued to expand nationwide.
The President said more than 100 gas projects were being financed through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), including 15 CNG mother stations and 86 daughter stations.
He also directed the rollout of an additional 500 CNG refuelling stations, bringing the planned nationwide network to 1,000 stations.
Mr Ahmed described the governors’ position as a major step toward ensuring that investments in the CNG ecosystem deliver tangible benefits to citizens.
He said deeper collaboration among the Federal Government, states, private sector, transport unions, operators and financial institutions was necessary to maximise the benefits of the initiative.
“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,” he said.
He said state government support for CNG conversions, vehicle fleets and enabling infrastructure would be critical to ensuring that savings from CNG were reflected in passenger fares.
He said that the benefits of the policy should extend beyond vehicle owners to ordinary Nigerians who depend on public transportation.
“At Pi-CNG & EV, we look forward to working with the states and all stakeholders to make this a reality across the country,” he said.
The renewed Federal Government-state collaboration is expected to build on ongoing investments in CNG conversion and refuelling infrastructure aimed at reducing the cost of transporting people and goods across Nigeria.
NAN