Nigeria can’t control events in global oil market, says Tinubu

President Bola Ahmed Tinubu has said Nigeria cannot control developments in the global energy market but can reduce its exposure to fluctuations in international oil prices by accelerating the adoption of cheaper alternative energy sources.
Tinubu made the remarks in a statement on Saturday while giving an update on the National Affordable CNG Transit Programme, following his August 27 meeting with the governors of Nigeria’s 36 states.
The President said the Federal Government and the states had agreed on the objective of ensuring that more Nigerians begin to experience measurable reductions in transportation costs from October 1.
He said an implementation committee had subsequently been established under the auspices of the Nigeria Governors’ Forum and chaired by Kwara State Governor AbdulRahman AbdulRazaq.
According to Tinubu, the committee, PI-CNG & EV, state governments and other stakeholders are working to identify priority transport corridors and deploy appropriate interventions.
The President said the urgency of the programme had increased because of disruptions to global energy supplies, which he said were putting renewed pressure on petrol and diesel prices and, consequently, transportation costs.
“​​Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure,” Tinubu said.
He cited examples from several states where CNG-powered and electric transport services have already resulted in lower fares.
In Borno, he said, CNG and electric public transport services were carrying commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
Tinubu also said 100 CNG-powered buses in Kaduna had provided free transportation on major routes and carried about 3.2 million passengers in their first year, resulting in reported savings of more than ₦3.5 billion in transport costs.
In Oyo, he said CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.
He added that alternative-energy transport services had reduced fares by as much as 50 per cent in Adamawa, while CNG buses in Enugu had brought the Enugu-Nsukka fare down from ₦2,500 to ₦1,500.
The President further cited Plateau, where government-supported buses reportedly carry about 13,000 commuters daily at ₦200, compared with commercial fares of more than ₦500.
He said CNG-converted commercial vehicles operating on several Abuja commuter routes had also provided passengers with a 40 per cent fare reduction through a partnership with the National Union of Road Transport Workers.
Tinubu said the Area 1-Gwagwalada fare, for instance, had fallen from ₦1,500 to ₦900, while fares from Nyanya and Wuse had dropped from ₦700 to ₦420 and ₦400 to ₦240 respectively.
Other states, including Niger and Abia, have also introduced subsidised alternative-energy transport services, according to the President.
“These are not projections. Nigerians are already experiencing these savings,” he said.
Tinubu said his administration had invested over the past three years in developing a CNG transportation ecosystem, adding that more than 120,000 vehicles had been converted, with over 400 certified conversion centres and more than 90 CNG refuelling stations now operating across the country.
He rejected calls for a return to the petrol subsidy regime, describing it as costly and saying it left Nigeria vulnerable to international oil price movements.
“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumed trillions of naira and left our economy exposed to every movement in international oil prices, as some have suggested,” he said.
The President urged state governments to intensify preparations ahead of October 1 by working with transport unions and commercial operators, supporting vehicle conversion and fleet deployment, and facilitating the infrastructure needed for alternative-energy transportation.
He also called on the states to ensure that savings from cheaper energy are reflected in lower fares paid by commuters.
Tinubu said the Federal Government would continue to support the expansion of CNG infrastructure and conversion capacity while creating an enabling environment for states, transport operators, manufacturers and private investors to participate.
“​​Nigeria has the gas. We are building the infrastructure. We are already seeing the savings,” he said.
“Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day.”