An economist, Dr. Marcel Okeke, has questioned the Federal Government’s promise that Nigerians will begin to enjoy cheaper transportation from October 1, arguing that the directive may require additional funding to become a reality.
Okeke said President Bola Tinubu’s directive to state governors could amount to a political statement, particularly with the 2027 general elections approaching.
He was reacting to Tinubu’s announcement that the Federal Government and state governments had agreed on measures to reduce transportation costs through the use of Compressed Natural Gas (CNG) and electric vehicles.
“I don’t know what magic they’re going to perform, but you know that the presidential election campaign has started,” Okeke said in an interview with Daily Trust.
The economist argued that although state governors are receiving higher allocations from the Federation Account, the increase has not necessarily translated into greater purchasing power because of the depreciation of the naira.
He illustrated his point with the rising price of cement. According to him, a 50kg bag of cement sold for about ₦3,000–₦4,000 in May 2023, when a state receiving ₦1 billion could purchase a substantial quantity. Today, with cement reportedly selling for around ₦12,000–₦15,000, even a state receiving ₦10 billion may not have significantly greater purchasing power.
Okeke also questioned how governors would fund new transportation programmes that were not captured in their 2026 budgets.
He suggested that if the Federal Government wants the programme implemented before October, it may need to provide additional funding to the states.
“For that to happen, they must find a way to route money to those governors,” he said.
Tinubu Targets October 1
President Tinubu recently announced that state governors had agreed to take immediate steps to reduce transportation costs in their respective states.
The initiative will focus heavily on CNG and electric vehicles, which the Federal Government says can significantly reduce fuel expenses.
Tinubu said a joint Federal and State committee would begin implementation immediately, with the goal of ensuring that Nigerians start benefiting from lower transport fares from October 1.
According to the President, CNG-powered vehicles can spend 60–80 per cent less on fuel than petrol-powered vehicles.
He also disclosed that more than 120,000 vehicles had already been converted to CNG, while another 100,000 conversion kits were being worked on.
The government is also expanding CNG infrastructure, including refuelling stations and gas projects across the country.
Governors Support CNG Plan
The Nigeria Governors’ Forum has backed the proposed National Affordable CNG Transit Programme.
The governors agreed to consider supporting CNG vehicle conversions, fleets and infrastructure, while also working with private investors to increase the number of CNG-powered vehicles on the roads.
Bayelsa State Governor, Douye Diri, said rising transportation costs had contributed significantly to the hardship being experienced by Nigerians.
He maintained that because gas is cheaper than petrol, wider adoption of CNG could help reduce transportation costs and potentially lower expenses in other areas of the economy.
Atiku’s Camp Reacts
The announcement also comes amid an ongoing debate between the Presidency and former Vice President Atiku Abubakar over fuel subsidy.
Atiku, the African Democratic Congress presidential candidate, has proposed a subsidy arrangement focused on supporting crude supplied to local refineries rather than returning to the former petrol-importation subsidy system.
Reacting to Tinubu’s announcement, Atiku’s aide, Phrank Shaibu, accused the President of responding to political pressure and described the move as “panic dressed in presidential grammar.”
Shaibu argued that Nigerians should not have to wait for a new programme before experiencing relief from high transportation and food costs.
He acknowledged that CNG could reduce transportation expenses but stressed that the government must ensure sufficient availability of the fuel.
CNG Infrastructure Remains a Challenge
Despite the Federal Government’s push for CNG adoption, motorists in Abuja and other parts of the country have continued to report long queues and limited access to refuelling stations.
Some CNG users say they spend several hours waiting to refuel, while others complain about inconsistent supply.
Chiwendo Ogbonna, a member of the Amalgamated Union of App-Based Transporters of Nigeria, said drivers could spend an entire day in queues.
He noted that although more motorists were converting their vehicles to CNG, the expansion of refuelling infrastructure had not kept pace with the growing demand.
The Federal Government introduced the CNG initiative in 2023 following the removal of the petrol subsidy, presenting it as a cheaper and cleaner alternative for motorists, particularly commercial transport operators.
The major question now is whether the government and state governments can overcome funding, infrastructure and supply challenges quickly enough for Nigerians to actually feel the promised reduction in transportation fares from October 1.
