By Adedapo Adesanya
President Bola Ahmed Tinubu yesterday disclosed plans to roll out 3,000 units of Compressed Natural Gas (CNG) buses to cushion the effect of the fuel subsidy removal on Nigerians.
Mr Tinubu disclosed this in a 20-minute televised broadcast addressing the nation’s state, giving backing to alternative energy sources cheaper than petrol and diesel, which have tripled since the president announced that subsidy was no more as of May 29, 2023.
The president said that the buses would be rolled out across the state and local government in the country for mass transit at a cheaper rate.
While petrol goes for around N560 – N570 per litre and diesel sells for around N680 -N700, CNG will cost around N200 – N250.
According to the president, provision has been made for an investment of N100 billion to acquire the 3,000 units of the 20-seater CNG buses between August 2023 and March 2024.
It would seem that President Tinubu’s plan assumes that CNG will be the alternative mass transit fuel all over the country.
President Tinubu said during the broadcast that, “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 provision to invest N100 billion between now and March 2024 to acquire 3,000 units of 20-seater CNG-fuelled buses.
“These buses will be shared with 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 cent per annum with 60 months repayment period.”
Mr Tinubu reiterated his stance that the subsidy has outlived its usefulness hence what necessitated removal, adding that the removal of the subsidy has saved the country over N1 trillion.
“In a little over two months, we have saved over a trillion naira that would have been squandered on the unproductive fuel subsidy, which only benefitted smugglers and fraudsters. That money will now be used more directly and more beneficially for you and your families.
“Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully online. However, we are swiftly closing the time gap. I plead with you to please have faith in our ability to deliver and in our concern for your well-being.
“We will get out of this turbulence. And, due to the measures we have taken, Nigeria will be better equipped and able to take advantage of the future that awaits her.”
