The planned reduction of public transportation fares through the expansion of Compressed Natural Gas (CNG) and electric-powered mass transit systems could provide relief for millions of Nigerians, particularly low-income earners, an energy expert has said.
Dr Ayodele Oni, Partner and Chair of the Energy and Natural Resources Practice Group at Bloomfield Law Practice, said the initiative would directly affect Nigerians who depend on commercial buses, tricycles and intercity transport services.
Oni made the comments in an interview with the News Agency of Nigeria (NAN) in Lagos.
CNG Plan Targets Transport Costs
The Federal Government is working towards reducing transportation costs from Oct. 1 following a directive by President Bola Ahmed Tinubu urging state governments to accelerate the adoption of CNG-powered vehicles and electric mass transit systems.
The President has maintained that the government would not return to petrol subsidy but would instead focus on alternative energy solutions and targeted interventions.
Poor Nigerians Could Feel the Impact First
According to Oni, transport fare reductions would have a more direct impact on low-income Nigerians than changes in petrol prices.
He explained that many low-income households do not own private vehicles but spend a significant portion of their income on daily transportation.
“The people who will benefit first are those who rely on commercial buses, tricycles and intercity transport,” he said.
The expert added that cheaper transport could also influence food prices because trucks and commercial vehicles are responsible for moving goods from farms and production centres to markets.
Fare Reduction Better Than Fuel Subsidy, Expert Says
Oni said concentrating on reducing public transport costs could help government avoid the financial challenges associated with petrol subsidies.
He explained that many Nigerians are more concerned about daily transport fares than the price of petrol itself.
According to him, a targeted transport intervention would reach people who feel the pressure of rising living costs most directly.
Implementation Remains Key Challenge
While describing the policy direction as positive, Oni warned that the success of the programme would depend on effective implementation.
He noted that Nigeria’s existing CNG infrastructure remains limited compared with the size of the country’s transport sector.
“About 120,000 converted vehicles and 90 refuelling stations is a beginning, not an ecosystem, in a country with well over 10 million vehicles,” he said.
The expert said more conversion centres, refuelling stations and reliable gas supply systems would be needed to achieve widespread adoption.
Operators Must Pass Savings to Commuters
Oni cautioned that lower fuel costs alone would not automatically translate into cheaper transport fares.
He said commercial operators could reduce their operating expenses without necessarily reducing passenger charges.
According to him, state governments and transport unions must play an important role by monitoring fares and ensuring that commuters benefit from the savings.
“The unions and state governments matter because they help determine whether savings actually reach passengers,” he said.
Need to Convert Existing Commercial Vehicles
The energy expert advised governments to focus more on converting vehicles already used by ordinary commuters, including minibuses and tricycles.
He said prioritising only government-owned fleets could limit the number of Nigerians who benefit from the programme.
Oni also encouraged authorities to replicate successful transport fare agreements, including arrangements where transport unions work with government agencies to establish and enforce affordable fares.
