Why Transport Fares Keep Rising in Nigeria Despite CNG Push

The Federal Government has invested heavily in promoting Compressed Natural Gas (CNG) as a cheaper alternative fuel for transportation, promising relief for Nigerians struggling with high living costs. But across the country, transport fares are still climbing, leaving many commuters wondering why the expected relief has not materialised.

Nigeria’s transport crisis is tied to a mix of economic pressures: fuel subsidy removal, rising inflation, and the weakening value of the naira. Together, these factors have pushed transport costs higher, worsening household expenses and indirectly driving up food prices. For many Nigerians, especially those in rural areas, this has deepened poverty and reduced living standards.

According to recent World Bank data, over 75 per cent of Nigeria’s rural population now lives below the poverty line, compared to about 41 per cent in urban areas. Transport costs play a major role in this divide, as moving people and goods has become increasingly expensive.

When President Bola Tinubu removed fuel subsidies in 2023, the government promoted CNG as a long-term solution. Since then, hundreds of millions of dollars have been invested in CNG infrastructure, conversion centres, and buses. Some commercial drivers have converted their vehicles, and more Nigerians are beginning to adopt the alternative fuel.

However, commuters say fares remain high. Many drivers agree, blaming heavy levies imposed by transport unions, as well as frequent extortion by security agencies. According to drivers in Lagos, Ogun, and Oyo states, daily union tickets, loading fees, and unofficial payments to police and road safety officials eat deeply into their earnings. These costs are eventually transferred to passengers.

Statistics back up commuters’ complaints. National data show that average intercity bus fares rose by over 78 per cent between April 2023 and April 2024, despite minor month-to-month declines. Some states now record fares as high as ₦9,600 per trip, while even the cheapest routes have seen sharp increases.

Transport unions argue that CNG adoption is still too low to significantly reduce fares, estimating that fewer than 10 per cent of commercial vehicles currently use the fuel. Union leaders also say more investment, additional refuelling stations, and access to affordable vehicle financing are needed before real change can happen.

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Meanwhile, safety enforcement has added another layer of tension. Authorities say crackdowns on overloading are necessary to protect passengers, but drivers insist that reduced passenger numbers, combined with union fees, force them to charge more just to survive.

Consumer protection authorities have warned transport operators against arbitrary fare hikes, especially during festive seasons, stressing that while price increases are not illegal, exploitative practices will attract penalties.

In the end, while CNG offers hope for cheaper transport, many Nigerians believe that without tackling union levies, corruption, and enforcement excesses, transport fares will remain high—no matter how much is invested in alternative fuels.

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