President Bola Tinubu announced in his Monday evening national speech that his administration will distribute at least 3,000 units of 20-seater buses to alleviate the economic suffering caused by the loss of fuel subsidies.
“Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses,” Mr Tinubu said in his speech.
The buses, which are expected to reduce the cost of public transportation, will be powered by compressed natural gas (CNG) – a natural gas under pressure that remains clean, odorless, lead and sulphur-free, and has been widely praised as a cost-effective and environmentally friendly alternative to traditional petrol and diesel fuel.
This move will also serve as a huge investment in the country’s clean energy sector, thereby raising the likelihood of large-scale exploration of its previously untapped potential.
The planned intervention is projected to cost N100 billion and would take place between now and March of next year, with commercial transportation companies as partners. According to the president, participating transportation companies will be able to obtain loans through the “facility at 9% per annum with a 60-month repayment period.”
“These buses will be shared to major transportation companies in the states using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period,” he added.
This is the latest of Mr Tinubu’s measures to demonstrate that he is in control of the teetering economy, which saw an additional four million people fall into poverty in June 2023 as a result of inflation induced by his unilateral suspension of petroleum subsidies.
Initially, Mr Tinubu intended to donate money to the needy (N8,000 per home for six months) rather than a genuine policy with immediate effects and long-term profitability. This action was widely criticized as economically foolish, causing him to reconsider the proposal in favor of more tenable ones, some of which were revealed in his address, such as plans to create a new social register where such interventions may be made.
The economic dynamics present fresh challenges to his government, particularly in view of recent developments in the ECOWAS region. Mr Tinubu is already dragging his heels in naming his ministerial economic management team, and polling public opinion may not be able to sustain his lack of readiness for long.
