Delta State, Nigeria — In a strategic move to mitigate the economic impact of the 2023 removal of the petrol subsidy, the Federal Government under President Bola Ahmed Tinubu has delivered five Compressed Natural Gas (CNG)/Premium Motor Spirit (PMS) buses to the National Union of Road Transport Workers (NURTW) in Delta State.
The vehicles, presented on Tuesday through the Nigeria Labour Congress (NLC), fulfilling an earlier government pledge to provide palliative support for transport workers grappling with rising operational costs following fuel subsidy removal.
The state’s NURTW Caretaker Committee Chairman, Comrade Patrick Okpandu received the keys from the Union’s National leader, Comrade Dennis Araro, on behalf of the NURTW President, Professor Tajudeen Baruwa, in a ceremony attended by top union executives from across the 25 local government areas of the state.
Speaking at the event, the Senior Assistant General Secretary of NURTW in charge of Delta State, Chief (Dr.) Chukwuemeka- Okolo Gift, emphasized that the gesture reflects President Tinubu’s commitment to easing hardship among commercial transport operators and the commuting public. The union leaders commended the Federal Government for the intervention and pledged to ensure the buses are deployed efficiently for public benefit.
Background: CNG Initiative and Fuel Subsidy Removal
President Tinubu’s administration formally ended the long-standing petrol subsidy in May 2023 — a policy shift the government says was necessary to redirect funds toward critical sectors and ensure long-term economic stability. The removal has been deeply controversial, linked with widespread increases in transport costs and cost of living across Nigeria.
To cushion these effects, the Federal Government has championed a broader Compressed Natural Gas Initiative (PCNGI) designed to transition parts of the public transport sector from petrol dependency to CNG — a cleaner and potentially cheaper alternative fuel.
Since late 2024, the government has rolled out multiple tranches of CNG-powered buses to transport unions nationwide. In November 2024, the Federal Government handed over a fleet of 15 CNG buses to major transport unions including NURTW as part of the Renewed Hope Clean Energy Transport Scheme.
Policy Intent and Challenges
The CNG initiative aims to achieve several objectives:
- Reduce high transport costs borne by commuters and operators following the end of petrol subsidies.
- Accelerate the adoption of cleaner energy solutions and reduce environmental pollution.
- Stimulate investment in Nigeria’s abundant natural gas resources, with targets to attract significant private capital into the CNG value chain.
However, progress has encountered structural challenges. Analysts and industry reports note persistent shortages of CNG refuelling stations and limited distribution infrastructure, which have slowed widespread adoption despite official commitments.
More recently, prices of CNG at filling stations surged sharply — from around ₦230 to as much as ₦450 per standard cubic metre (SCM) — following reductions in subsidies for the alternative fuel itself. This has sparked concerns that increased costs and long queues could dampen the intended economic relief for drivers and passengers alike.
Union and Public Response
Transport unions, including the NURTW and the NLC, have positioned the bus deliveries as partial relief while urging further government action to expand CNG infrastructure and reduce the cost burden on operators. They argue that access to affordable fuel alternatives is critical to stabilizing fares and sustaining the transport sector.
Delta State union leaders welcomed the latest distribution, describing it as a “timely intervention” but also called for accelerated rollout of CNG refuelling networks to ensure the buses deliver on their cost-saving promise.
Looking Ahead
As the Tinubu administration enters the mid-phase of its term, the success of the CNG programme — and related transport palliatives — could be a key indicator of the broader economic reforms’ impact on everyday Nigerians. Government officials maintain that redirecting funds previously lost to subsidy payments toward productive investments will yield long-term growth and development dividends, even as short-term pains persist. NIM
