The federal government Sunday handed over 64 Compressed Natural Gas (CNG) buses to the Nigerian Labour Congress (NLC), the Trade Union Congress (TUC) and the National Association of Nigerian Students (NANS).
The handover of the buses took place at the State House Conference Centre in Abuja as part of activities marking Nigeria’s 64th independence anniversary.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, led the government delegation that included the Minister of Information and National Orientation, Mohammed Idris; the Minister of Budget and Economic Planning, Mr Abubakar Bagudu; and the Minister of State for Youth Development, Mr Ayodele Olawande.
Speaking at the event, the Minister of Finance 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 said the 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 explained that the symbolic handover of 64 buses 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 said 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 said.
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.”
He said the fuel cost of 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.
Also speaking, the Minister of Information and National Orientation Mr Mohamned Idris said the distribution of the buses demonstrates President Tinubu’s commitment to alleviating the suffering of Nigerians.
“This is a necessary first step that the government has taken, and we are giving out 64 buses to commemorate the 64th independence anniversary of our great country.
“40 of these buses are going to the labour unions. You heard the representative of the labour here accepting them. 20 of the buses are going to the Students Union, and about four will now be here in the Federal Capital Territory.
“Now let me emphasise that this is not all. Over 700 of these buses have already been ordered. These are the first sets we are giving out to symbolise the official commencement of this initiative of Mr. President. So don’t say that you only have 64 buses to cater to the whole of this country. It’s a necessary first step by government,” he said.
He said since CNG costs far less than Premium Motor Spirit, Nigerians should expect to save 60 per cent on transportation costs when the initiative goes fully operational.
“You will spend far less to fuel it. Filling the two tanks you have seen here will cost you about N15,000, as against N72,000 for Petrol. It’s a drastic reduction. The private sector is already contributing.
“This is beginning from those who need it the most; the working class will get this. But beyond that, everybody will feel the impact.
“It’s a promise that Mr president has kept to Nigerians, and we know that very soon, more of these buses will ply all the roads of this country,” he said.
The Secretary-General of TUC, Comrade Nuhu Toro, commended President Tinubu for the gesture.
He 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,” he said.
The representative of NLC, Comrade Uche Ekwe, said the benefits of the CNG buses would become more apparent once they 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.
Also speaking, the president of NANS 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,” he said.
The Programme Director/Chief Executive of PCNGi, Michael Oluwagbemi, 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 distribute.
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.