President Bola Ahmed Tinubu has said that he is targeting states and local governments to roll out compressed natural gas (CNG) buses as a solution to ease the burdens created by the removal of fuel subsidies in May 2023.
He said this during his live broadcast to the country’s citizens on Monday evening. According to him, his administration is working hard to make sure that Nigerians are relieved from the economic burdens they have across increased transportation costs, due to the high cost of fuel (N617 and upwards).
President Tinubu stated further that the Federal Government is working closely with state and local governments to implement interventions that will cushion the pains of Nigerians across socio-economic brackets.
The Plan
Tinubu said:
- “Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made a provision to invest N100 billion between July 2023 and March to acquire 3000 units of 20-seater CNG-fueled buses.
- “These buses will be shared to major transportation companies in the states using the intensity of travel per capita. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.”
The Backstory
During the Muhammadu Buhari administration, the Independent Petroleum Marketers Association of Nigeria (IPMAN) wrote to the Ministry of Finance indicating that the Association had a plan to co-locate CNG dispensing infrastructure at existing 30,000 fuel stations across the country.