President says returning to petrol subsidy would put additional pressure on public finances
President Bola Ahmed Tinubu has ruled out a return to Nigeria’s former petrol subsidy regime, arguing that the country should instead accelerate the transition to compressed natural gas (CNG) and other alternative-energy transportation systems.
Tinubu said returning to subsidised petrol and increased fuel importation would place additional pressure on scarce public resources.
The President made the remarks while providing an update on the National Affordable CNG Transit Programme on Saturday.
Government points to CNG as alternative
Tinubu said Nigeria’s position as a gas-producing country provided an opportunity to reduce dependence on petrol and shield consumers from some international energy-market pressures.
He said the Federal Government had spent the past three years developing a CNG transportation ecosystem, including vehicle conversions, refuelling infrastructure and partnerships with state governments and transport operators.
The President said more than 120,000 vehicles had already been converted and that more than 400 certified conversion centres and over 90 CNG refuelling stations were operating across the country.
Fare reductions cited
Tinubu pointed to reductions already recorded on some transport routes.
Among the examples cited was the Lagos-Ibadan route, where he said CNG buses deployed to Pacesetter Transport brought fares down from about ₦8,000 to ₦3,200 during the initial deployment.
He also cited reduced fares in Borno, Adamawa, Enugu, Plateau, Niger, Abuja and other locations.
The President has directed states to expand their alternative-energy transport programmes and ensure that savings from cheaper energy are passed on to passengers through lower fares.
Subsidy debate remains politically contentious
The subsidy question has become a major issue in Nigeria’s economic and political debate.
The Tinubu administration removed the petrol subsidy in 2023, a decision that has contributed to significant changes in fuel and transportation costs while the government argues that it has freed resources for other public priorities.
Opposition figures, including Atiku Abubakar, have proposed forms of targeted subsidy as a means of reducing pressure on households.
Tinubu’s latest position makes clear that his administration intends to pursue cheaper-energy alternatives rather than reverse the subsidy policy.