The Federal Government (FG) has handed over 64 Compressed Natural Gas (CNG) buses to the Labour unions and the National Association of Nigerian Students (NANS) to help reduce transportation costs across Nigeria.
In a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga on X, the Labour unions were represented by members of the Trade Union Congress (TUC), the Nigerian Labour Congress (NLC).
According to Onanuga, when deployed for commuter service, the buses will significantly reduce transportation costs in the country, bringing hope for a more affordable and efficient public transport system.
The handover of the buses took place on Sunday at the State House Conference Centre, Abuja, as part of activities marking Nigeria’s 64th independence anniversary.
The Coordinating Minister of the Economy and Minister of Finance, Wale Edun, led the government delegation that included the Minister of Information and National Orientation, Mohammed Idris, the Minister of Budget and Economic Planning, Abubakar Bagudu, and the Minister of State for Youth Development, Ayodele Olawande.
Edun described the distribution of the buses as fulfilling President Bola Tinubu’s promise to provide affordable and efficient transportation to support Nigerians after the removal of fuel subsidies under the Presidential Initiative on Compressed Natural Gas (PCNGi).
He emphasised that this initiative aims to alleviate the burden on the poor and vulnerable and support macroeconomic reforms that would position the country on the path to economic stability.
The Minister further explained that the symbolic handover of 64 buses on the eve of Nigeria’s National Day marks the beginning of a broader national rollout, with the plan to distribute over 500 CNG buses and 100 electric vehicles in the first instance.
He added that the CNG initiative aligns with Nigeria’s commitment to cleaner energy while leveraging its energy resources for industrialisation.
”Today marks another critical milestone in the policies of President Tinubu. It is a transition to cleaner fuel. It is for Nigerians. The emphasis is on mass transit. The minister said there is an emphasis on intervening on the side of workers so that they have cheaper transport to cope with rising prices.
He also highlighted the CNG initiative’s impact on inflation, saying:’ ‘We’ve had an initial spike in inflation, now it has peaked, and it is coming down. Mr President and the whole team are determined to ensure that we keep inflation coming down, and this is one of the major ways.”
The Coordinating Minister of the Economy noted that the fuel cost for CNG-powered vehicles is about one-third of the fuel for petrol-powered vehicles.
He said motorists can now pay as low as N15,000 to fill a tank instead of N50,000 or more.
”Today, it is CNG. Tomorrow, it will be helping farmers to cope with the remainder of the wet season planting and then the dry season planting, starting from November, with fertiliser, inputs, seeds, and herbicides.
”This is all to get prices down and get the economy moving again, ” he said.
The Secretary-General and Chief Executive of TUC, Comrade Nuhu Toro; NANS president, Comrade Lucky Emonefe; and the Head of International Desk, NLC, Comrade Uche Ekwe, commended President Tinubu for the gesture. They called for more CNG buses to be made available to the public.
Toro thanked the President for implementing the N70,000 new national minimum wage: ”This move is a significant step in alleviating the economic burden of Nigerian workers.
NANS president Comrade Emonefe praised the government for its commitment to education and student welfare, citing the provision of a student loan scheme for higher education.
“Nigerian students are happy to be celebrating the 64th anniversary of independence. We are not only happy with the CNG buses; we believe that the current President loves the welfare of students and has shown his commitment to this.
The NLC representative noted that the benefits of the CNG buses would become more apparent once more buses are deployed across the country.
”If we get more buses, the effect will translate immediately to Nigerians. If people start entering these buses, they will publicise it in the public and their neighbourhood,” he said.
Michael Oluwagbemi, Programme Director/Chief Executive of PCNGi, said that since its establishment one year ago, over 125 conversion centres have been established, compared to the initial seven.
He said investment in the sector has exceeded $175 million, with 12 new mother stations commissioned and 75 more under construction.
Technician training is being ramped up, with 40 new technicians trained weekly. Over 34,000 conversion kits have been ordered, with more than half already distributed.
He said vehicle conversions are taking place at 53 centres in eight states. He said the centres would be expanded to all the 36 states and the FCT.
