FG Explains Why ₦100bn CNG Bus Fund Was Redirected

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ABUJA, Nigeria — The Federal Government has defended its decision to redirect a proposed ₦100 billion allocation intended to purchase 3,000 compressed natural gas (CNG) buses towards vehicle conversions, tricycles and buses of different passenger capacities.

Tosin Coker, Chief Operating Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), explained that the government reviewed the original plan after establishing the initiative in October 2023.

Speaking during an interview with ARISE News on Sunday, October 11, Coker said the authorities concluded that purchasing 3,000 buses alone would not adequately address Nigeria’s extensive public transportation needs.

He said the revised approach would benefit more transport operators and commuters by supporting the conversion of existing vehicles, supplying conversion kits and deploying buses of different sizes.

Why The Government Changed The Plan

Coker said the original ₦100 billion proposal was announced in July 2023, before the presidential CNG initiative was formally established.

According to him, the programme’s steering committee subsequently reviewed the proposal and considered how best to deploy the available resources.

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He argued that relying exclusively on the purchase of 3,000 buses would have limited the programme’s reach, particularly given Nigeria’s extensive transportation needs.

The government therefore broadened the programme to include converting existing petrol-powered vehicles to run on CNG, supporting tricycle operators and acquiring buses with varying passenger capacities.

Coker said the revised strategy was designed to increase the number of vehicles benefiting from the initiative and improve access to alternative fuels.

He also defended the decision to revise the original plan, noting that government programmes sometimes require adjustments after officials assess implementation conditions and practical needs.

Government Reports More Than 120,000 Conversions

Coker said the initiative had recorded more than 120,000 vehicle conversions, largely involving commercial transport operators.

He disclosed that the programme completed more than 25,000 conversions during its initial phase, including interventions involving transport unions and operators.

The official also said the initiative had introduced more than 650 buses nationwide, alongside tricycles.

According to the report, the buses include smaller models that accommodate between 15 and 18 passengers, 50-seater buses and larger models capable of carrying approximately 90 passengers.

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Coker acknowledged that the number of CNG buses and tricycles operating across Nigeria remained insufficient. He said the government had ordered additional CNG and electric vehicles and planned to expand their deployment in the coming weeks and months.

Gas Infrastructure To Guide Bus Deployment

Coker explained that the initiative considers the availability of CNG refuelling infrastructure when deciding where to deploy buses.

He said deploying CNG-powered vehicles in locations without adequate refuelling facilities could limit their usefulness.

The official cited Lagos and Abuja among the locations that had received buses under the programme. He also indicated that further support was planned for states including Delta, Enugu and Akwa Ibom.

The initiative is also working with financing partners to make vehicle conversions more accessible to motorists and commercial transport operators.

The broader programme aligns with the Federal Government’s stated objective of expanding domestic gas utilisation and reducing transportation costs following the removal of the petrol subsidy.

In March 2026, the Presidency announced plans to accelerate the nationwide distribution of conversion kits and develop financing arrangements to help Nigerians pay for vehicle conversions.

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Lower Transport Fares Remain A Key Test

Despite defending the change in strategy, Coker acknowledged that Nigerians ultimately want the programme to reduce their daily transportation expenses.

He said the initiative needed to do more to ensure that its interventions translated into lower fares for commuters and reduced fuel costs for vehicle owners.

The government’s explanation outlines its rationale for moving away from the original target of purchasing 3,000 buses. However, the reported conversion and deployment figures do not, by themselves, establish how much of the ₦100 billion has been spent, how the funds were allocated or the extent to which the programme has reduced transport fares nationwide.

Greater transparency on expenditure, procurement and measurable outcomes would help the public assess the programme’s financial accountability and its actual impact on commuters.

For now, the government maintains that its broader approach is designed to reach more people than the original bus-only proposal, while acknowledging that further expansion is necessary.

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