FG, states to jointly fund CNG, electric vehicles to cut transport fares

The federal government and state governments are to establish a joint financing framework to accelerate the deployment of Compressed Natural Gas (CNG) and electric vehicles across the country, as part of efforts to reduce transportation costs for Nigerians.

The National Economic Council (NEC) reached the resolution at its 161st meeting on Thursday, chaired virtually by Vice-President Kashim Shettima.

The council also directed relevant authorities to engage transport unions and operators to ensure that savings from the adoption of CNG and electric vehicles are passed on to commuters through lower fares.

The decision followed a presentation on the National Affordable CNG Transit Programme by the Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Ismaeel Ahmed.

According to a statement by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications in the Office of the Vice-President, NEC agreed to constitute a committee to coordinate the financing arrangement, engage stakeholders and develop practical measures for implementing the programme.

The council stressed that the initiative must deliver tangible benefits to Nigerians through reduced transportation costs rather than focus solely on providing alternative-energy vehicles.

Speaking at the meeting, Shettima said the success of the National CNG Bus Initiative should be measured by affordability and accessibility, rather than the number of vehicles deployed.

“The cost of reaching a livelihood should never consume the livelihood itself. The passenger’s experience must guide our ambition, because the value of public transport resides in the journeys it makes possible. We should assess success through affordability and access, rather than fleet size alone,” he said.