The Federal Government has revised its initial plan to deploy the ₦100bn allocation announced by President Bola Tinubu for the purchase of 3,000 compressed natural gas (CNG) buses, redirecting the intervention towards vehicle conversions, tricycles, and higher-capacity buses.
Tosin Coker, Chief Operating Officer of the Presidential Compressed Natural Gas and Electric Vehicles Initiative, disclosed this in an interview with ARISE NEWS on Sunday. He explained that the government reviewed the plan after the initiative was launched in October 2023, concluding that procuring 3,000 buses alone would not adequately serve Nigerians.
According to Coker, the revised programme was designed to broaden access to alternative-fuel transportation by focusing on vehicle conversions and diverse categories of buses. He noted that the funds were “put to better use” in conversion kits, larger-capacity buses, and tricycles, rather than limiting the intervention to 20-seater buses.
President Tinubu had announced the ₦100bn allocation in July 2023 as part of measures to cushion the impact of petrol subsidy removal. Coker said the subsequent review led to the establishment of the presidential CNG initiative, which adopted a more inclusive strategy.
Providing updates, he revealed that over 650 buses have been introduced nationwide, alongside more than 120,000 vehicle conversions, primarily for commercial transportation. He added that the initiative had also procured conversion kits and tricycles, though acknowledged that the current numbers remain insufficient to meet national demand.
Coker emphasized that the programme is scaling up, with additional CNG and electric vehicles expected in the coming weeks to lower transport fares. He urged state governments to play a more active role in public transportation, stressing that the Federal Government alone cannot meet the country’s needs.
He further disclosed that conversion costs start from about ₦350,000, with financing options being developed in partnership with the Nigerian Consumer Credit Corporation to allow payments over three, six, or twelve months.
Coker concluded that the long-term growth of the CNG industry will depend on private-sector participation, while government will focus on creating an enabling environment, safety standards, and training.
