The Federal Executive Council (FEC) on Monday approved a N215 billion investment to expand Nigeria’s Compressed Natural Gas (CNG) transport programme as part of measures to reduce transportation costs and cushion the impact of current economic challenges on Nigerians.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while speaking to State House correspondents after the FEC meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
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Mr Oyedele said the approval covers the procurement of 200 CNG-powered buses, building on investments already initiated under the administration’s clean energy transport programme.
According to him, some of the investments had earlier received anticipatory approval from President Bola Tinubu because of their urgency, while the council’s latest decision clears the way for the remaining funding to be released.
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“As many of you will recall, President Tinubu introduced initiatives on CNG buses, electric vehicles, CNG tricycles and conversion kits. Council today approved the remaining investment needed for the programme. The total amount is about N215 billion for 200 buses,” he said.
The minister said the government’s objective is not only to provide alternative energy vehicles but also to reduce the cost of public transportation.
He, however, expressed concern that some operators using government-supported CNG vehicles continue to charge commuters the same fares as operators relying on petrol-powered vehicles.
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“What we found is that the person using CNG is charging the same fare as the person using petrol. That is no longer government’s responsibility; it is simply people taking advantage of the situation,” he stated.
Mr Oyedele urged transport operators benefiting from subsidised CNG conversion kits and other government interventions to pass the savings on to commuters.
“If we all play our part honestly and think about the interest of our country, we will make progress much faster,” he added.
Beyond transportation, Mr Oyedele said the council approved financing arrangements worth about $900 million to support agriculture, rural development, technical and vocational education, and Special Agro-Industrial Processing Zones.
According to him, the financing package is expected to improve agricultural productivity, strengthen food security and support rural economic development.
The council also approved two financing facilities to expand access to affordable credit for small businesses through the Development Bank of Nigeria (DBN).
The facilities comprise €200 million and $500 million, which Mr Oyedele said would provide lower-cost financing for micro, small and medium-sized enterprises (MSMEs).
FEC also approved a $160 million financing package from the Islamic Development Bank for the Niger State Solar Energy Development Project.
READ ALSO: Oyedele confirms Nigeria has drawn first $1.5 billion under $5 billion Abu Dhabi financing deal
Mr Oyedele said the bank will provide $150 million, while the Niger State Government will contribute $10 million as counterpart funding.
In the infrastructure sector, the council approved $1.2 billion for Section II of the Sokoto–Badagry Super Highway project in Kebbi State.
The minister said the approvals form part of the administration’s broader strategy to invest in critical infrastructure while supporting economic growth, job creation and improved living standards.
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