….120,000 Commercial Vehicles Converted To CNG as FG Targets 1m CNG Conversions To Cut Transport Costs
….Transport Costs At 17% – FG Banks On CNG, Rail To Reduce Burden
The Federal Government has commenced large-scale deployment of Compressed Natural Gas, CNG, infrastructure nationwide, with 120,000 commercial vehicles already converted and plans to convert over one million in the shortest possible time.
The Technical Adviser to the Vice President on Transportation, Logistics and Innovation, Prince Segun Obayendo, disclosed this on Monday night during an interview in Abuja.
Obayendo, who is also the National Coordinator, Transporters for Tinubu/Shettima 2027, said the initiative was in direct response to President Bola Ahmed Tinubu’s call to governors to reduce transport fares.
He described the removal of fuel subsidy as a courageous decision that previous administrations attempted and abandoned eight times since 1988.
“Some of us felt, ‘At last, somebody is addressing what should have been addressed God knows how many years ago,’” Obayendo said. “For so long a time, every government would try, but by the time we go on the street and protest, they withdraw. It has been a step forward, two steps backward. He came in and made the announcement: subsidy is gone.”
On why this commitment would yield results, Obayendo cited political alignment between the President and majority of state governors. He said the National Council on Transportation currently underway in Abuja has engaged commissioners of transport from the 36 states to develop frameworks for implementation at state level.
“Everything begins with political will,” he said. “Mr. President engaged with the subnationals because we are a federation; to get things cascaded down to the grassroots, the subnationals are critical.”
Obayendo said the government is also scaling refueling infrastructure, including motor and data stations, to meet the President’s October 1st target for seamless CNG conversion and refueling.
He linked transportation policy to the high cost of living, noting that Nigeria’s logistics cost stands at 16 to 17 percent, far above the global best practice of 8 percent. He attributed the high cost to poor road networks which force operators to spend heavily on spare parts.
The presidential aide further said rail development was part of the broader plan, citing the movement of 40-foot containers from Apapa to Ibadan by train, which he said takes over 40 trailers off the highways.
“The way Nigerians will feel it in their pockets is when we see not much spent on refueling and not much spent on spare parts,” he said. “For you to make a fundamental change, every government deserves a second term. This is what the energy diversification and this campaign is all about.”
