On Monday, the federal government launched an initiative to deploy over 500 Compressed Natural Gas (CNG) buses across all 36 states of Nigeria.
The rollout began in Ibadan, Oyo State, where Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative (P-CNGi), handed over 20 buses to the Pacesetter Transport Service, a government-owned transit operator.
Following the initial deployment in Oyo State, the next states to receive their CNG-powered buses will be Lagos, Kwara, and the Federal Capital Territory (FCT). Oluwagbemi outlined a plan to distribute a total of 500 CNG buses nationwide over the next 24 months.
The buses will be made available to mass transit operators under commercial terms, with the revenue generated used to acquire additional buses for future phases of distribution. Oluwagbemi emphasized that beneficiaries of the buses will include state governments, traditional institutions, and private sector operators.
He also noted that the federal government has signed Memoranda of Understanding (MoUs) with operators to ensure that fares are kept moderate.
“We have agreed on the fares and operational terms to ensure that revenue from the buses will be reinvested into acquiring more vehicles,” Oluwagbemi explained. “This initiative, based on the president’s directive from July 31, 2023, aims to make transportation more affordable and create jobs, as these buses were assembled in Nigeria.”
The first phase involves 500 buses, and as they are used, a portion of the fares will contribute to a fund for purchasing additional buses.
The initiative will cover both inter-state and intra-state transportation needs, with some buses being deployed through collaborations between traditional institutions, private sector operators, and government entities.
Dr. Salami Dikko, Chairman of Oyo Pacesetter Transport Services, expressed enthusiasm for the CNG initiative and revealed plans to convert more of the state’s mass transit buses to CNG power. He also called for additional CNG buses to be allocated to Oyo State due to its high commuting population.
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