We are reducing transportation cost by 45%, building an economy with CNG initiative in Ogun — Governor Dapo Abiodun
In this interview, Governor Dapo Abiodun, speaks on how Ogun State is tapping into the compressed natural gas (CNG) initiative as an alternative to petrol. Excerpts:
You were one of the governors who led the private sector to meet with President Bola Tinubu after the fuel subsidy removal last year, where the president spoke about the introduction of the CNG alternative. On Wednesday, we saw you riding a CNG bike. Was that for pleasure, or is the CNG initiative here with us?
Yes, you saw me riding the CNG bike, but let us take some steps back. Sometime last year, we launched our CNG Mass Transit Programme, which was the conversion of some of our state-owned buses to become CNG powered. This was because we knew that the president was going to deregulate, and this was the posture of all the presidential candidates before the elections. Hence, the state government, as a responsible entity, had to move in that direction; thus, we started that programme, knowing full well that as soon as the vision became a reality, it would affect the cost of transportation of people, goods, and services.
So, what we did last October was to actualise and domesticate the Renewed Hope Initiative to begin to cushion the effects of fuel subsidy removal. That was our Phase 1, and Wednesday was Phase II, which was our E-Mobility Launch, showcasing electric motorbikes, electric tricycles, CNG tricycles, and electric vehicles.
Yes, you saw me riding a bike; I used to ride one back in the day when I was much younger. More importantly, what we are trying to achieve is to drastically reduce the cost of transportation because when you deregulate, particularly at this period when our people are agitating about food prices, one of the major elements that contribute to inflation is the cost of transportation.
I recall today, Thursday, someone called to say he bought yam in Lagos at a particular price, which was quite higher than what it was at Ikire. You find that the difference between the price in Lagos and that of Ikire was because of the cost of transportation.
This is what we set out to achieve, and I can see that we have been very successful in that objective. When we launched our CNG buses, it crashed the cost of transportation for our people within Abeokuta and between Ogun State and Lagos and actually forced down fares from the Mowe-Ibafo corridor to Lagos.
Now, let me give you a practical example so you can properly understand the impact. On Wednesday, we launched the e-bike, and those e-bikes have no engines. All they have is a battery that makes them practically noiseless. The emissions are zero, which means that we are not polluting the environment in terms of environmental impact.
We are now going to reduce the cost of transportation by around 45 percent. All that these e-bikes need is to have their batteries charged. Once charged, they will power the bikes for about 75 kilometres on a single charge. We have charging stations located around the state where riders can charge within two to three minutes, thereby creating another small economy for those at the sub-stations.
In one breath, we are reducing the cost of transportation; in another breath, we are reducing pollution and building a small economy for those who would be managing the substations. Let me give you another example.
We also launched on Wednesday a particular CNG-powered tricycle that previously travelled about 120 kilometres on fuel that would cost about N14,000. The one we launched will travel the same distance on CNG that will cost about N2,000 to power.
As I said, all we do in Ogun State is to domesticate the Asiwaju solution, which means that regardless of the level of inflation, this will provide the cushioning effect that will reduce the cost of transportation.
Why is it that it is only Ogun State doing this? It is supposed to be done by all 36 governors and the FCT to ameliorate the effect of the subsidy removal.
Well, for us, we occupy a strategic position in the country. We are the closest to the financial capital of Nigeria. I also enjoy an advantage: I have a large number of gas stations in my state.
The gas pipeline that goes all the way to Ibese, passes through my state, leading to the proliferation of industries in Ogun State because of access to power. So, for me, I took advantage of that.
It is not because of any special funding; we have not been given any special funding by the Federal Government. It is just because of the strategic location of my state and proximity to Lagos.
I realised that it was important for me to immediately cash in on this initiative and provide an alternative means of transportation that will cushion the effect of the deregulation that was brought to a stop; the monster that consumed N500 billion to N600 billion a month in fuel subsidy as of then.
As far back as about two months ago, there was a report that the Federal Government was going to give N10 billion to each state for CNG mass transit to reduce transportation costs. Are you saying that the money has not been disbursed?
You see, the problem with the average Nigerian is that we are very impatient. From the announcement of a policy to its implementation, it takes a period.
They are working assiduously to ensure that what we are doing in the state is replicated across the country. But let me tell you something: the CNG case is not like the COVID case, where one size fits all. It takes some time to identify the type, make, and model of vehicles, so it is taking a lot of time to put a system in place.
I know they are working on it, such that they log onto their site and indicate the model of vehicle and where you are. At the appropriate time, they will allocate a time for you to bring your vehicle for conversion to CNG. So, as time goes by, it will become commonplace in Nigeria. Rest assured that even though I am not trying to speak for them, I know about what they are working on.
You can imagine what we have done in Ogun State, which is a state of about 5,000,000 people, compared to the whole of Nigeria, where we have a population of over 200 million. I am sure that in a few months, we will begin to appreciate the progress in many states.
They are working on this CNG conversion, and the president is particularly keen on ensuring that this scheme is successful.
Apart from the CNG buses, we understand that some transport organisations and unions are supposed to receive some subsidy also for CNG-enabled vehicles to help them with their transport businesses, and about three million households are supposed to receive about N50,000 each.
What are you doing to reduce the pressure on private individuals? Give us a sense of what is going on, especially with the hunger and the protests today?
What I will say to Nigerians today, boldly, is that President Bola Ahmed Tinubu has only been in office for a year and perhaps three months.
It takes more than 15 months to reverse a trend that has permeated for a few years before his assumption of office. He has declared his principles and policies, and as soon as he was inaugurated and assumed office, he began implementing these audacious policies. These are policies that previous administrations were perhaps not bold enough to implement.
These policies have been applauded by development banks and organisations all over the world. It will take time for their impacts to begin to be felt by the common man. He has promised, and on Wednesday, the Minister (of Finance and Coordinating Minister of the Economy) told all Nigerians that the President is aware of the current realities and is working assiduously to ensure that he lives up to the expectations of our people.
When he assumed office and declared that there was no going back to deregulation, he immediately began giving wage awards to all public servants. Only recently, he signed the Minimum Wage Act. That is a serious commitment.
He has begun implementing the Students’ Loan Scheme. When last in the history of Nigeria did we see the disbursement of students’ loans to students of tertiary institutions?
The FG is also implementing schemes for the elderly across the entire country and wards, and these schemes are ongoing. The president is giving out food palliatives through us governors, knowing that the impacts of the policies are being felt. Now, the FG is removing import restrictions on certain food items, and as of this week, rice should begin to be sold to people at N40,000 per bag.
He has provided agricultural inputs, fertilisers, maize, corn, sorghum, all within one year! What more do we expect from a man who has a proven track record? He was governor of Lagos State for eight years. Lagos is the size of many African countries put together.
You will agree that the current issue of inflation does not apply to Nigeria alone. Yesterday, there was a protest in Ghana, a protest in the UK, and not long ago, in Kenya. Inflation is rising all over the world. As much as I appreciate that elected officials must look out for the well-being and welfare of our people, our President is doing his very best and is committed. I believe that what we must do is allow him time so that we can see the impact of these policies.
The Naira has stabilised, and with the recent intervention of Mr. President in the Dangote/NNPC issue, which was made to appear like a controversy, that crude must be sold to Dangote Refinery and other refineries in Naira, you will see the reduction of pressure on the Naira and Dollar, and I am sure that you will see instant relief. That will reduce the exchange rate, and over time, you will see the multiplier effect on the economy.
The truth is that what we are going through now is like the pain of a woman who is trying to give birth. She will go through a lot of pain, but at the end of the day, when she gives birth, everyone is happy. So, I want to plead with Nigerians to give Mr. President and all of us time as well. He is doing everything he can, knowing that his number one role is to put food on our table. They are the ones who brought him into office, and he has said it so many times that, ‘Look, don’t pity me. I asked for this job. I campaigned for it. I invested to be President, and this is the only job I have.’
Some would be asking whether the cost of governance is one of the areas where the people would know that the government is listening to the agitation of the poor.
There is this belief that we spend far too much on those who are in power while poverty is high in the country. Is there anything the government of the day will be doing in that respect?
Well, without a doubt, the Bola Ahmed Tinubu administration is a considerate one. This is the first time, and I am glad that my brother, Mr. Femi Falana, SAN, who spoke with you earlier, alluded to such things, even though I do not agree with everything. He said that this government is a responsive one.
This is the first time there would be protests or civil disobedience, and the government would go all out to ensure that they engage with diverse groups, explaining to them what the government is doing, what it has done, and what it intends to do. By doing so, they are providing moral suasion, and different groups came out, dissociating themselves from the protests. That clearly indicated that this administration is responsive to the needs of the people. So, I don’t think I need to say anything other than that.
The voices and cries of our people are being heard from the local governments to the state governments and to the Federal Government, and we are all working together. Last week, we met with Mr. President; we hold the National Economic Council meeting once a month to discuss the economy of the country and review our activities. I can tell you that the Nigeria of our dreams is just on the horizon.
So, regarding the cost of governance, we have heard that you, and Mr. President have directed that public servants should buy locally-made vehicles, and such vehicles must be powered by CNG.
Look, this is the first time we have a president who has his fingers on the button.
