Governor Umo Eno and the Economics of CNG Transport in Akwa Ibom

When Governor Umo Eno launched the construction of the Ibom Compressed Natural Gas (CNG) mass transit terminal in Uyo, it was more than just an infrastructure project it was a strategic economic move. The initiative directly addresses one of the biggest cost burdens for households and businesses: transportation.

The groundbreaking ceremony at Obio Offot and Ikot Akpe communities unveiled a plan centered on CNG-powered buses and modern transit terminals.

Governor Eno revealed that 50 buses had already been purchased outright, ready for deployment across the state. This detail underscores that the project is not just aspirational but already backed by tangible investment.

At its core, the economics of CNG transportation rests on cost efficiency. CNG is considerably cheaper than petrol and diesel, especially for mass transit operations that consume fuel at scale. By adopting CNG, the state reduces the operating costs of public transportation, creating room for more affordable fares. For commuters, this translates into lower daily transport expenses. For the economy, it means more disposable income retained within households and redirected into consumption, savings, or small-scale investment. In an economy where transport costs often erode earnings, this adjustment alone can have a stabilising effect on living standards.

Beyond commuter savings, the CNG initiative introduces a new layer of economic activity. The terminal project is not limited to bus loading bays; it includes refuelling facilities, maintenance workshops, and training infrastructure. Each of these components expands the value chain of transportation beyond driving buses. Technicians, mechanics, engineers, safety personnel, administrators, and trainers become part of an emerging ecosystem, creating direct and indirect employment opportunities.

As operations scale, ancillary businesses, food vendors, retail outlets, service providers, naturally cluster around transit hubs, turning them into local economic nodes rather than mere transit points.

Efficiency is another economic dividend. At the heart of the initiative lies cost efficiency. CNG is far cheaper than petrol or diesel, particularly for large-scale transit systems. Lower operating costs mean reduced fares, easing the financial strain on commuters. For families, this translates into more disposable income that can be redirected into consumption, savings, or small investments helping stabilize living standards in a fuel sensitive economy.

The project also creates new economic opportunities. Beyond bus operations, the terminal will house refueling stations, maintenance facilities, and training centers. This expands the transport value chain, generating jobs for technicians, engineers, mechanics, safety officers, and administrators. As activity grows, small businesses such as food vendors and retailers will naturally cluster around these hubs, turning them into vibrant local economies.

Efficiency gains are another dividend. A structured transit system reduces congestion and travel delays, boosting productivity. Workers and businesses benefit from reliable mobility, while logistics and service delivery costs decline. Over time, this improved connectivity encourages urban growth and investment.

Environmentally, CNG offers cleaner energy, cutting emissions and improving air quality. Though the benefits may not immediately show in revenue, they reduce healthcare costs and foster a healthier, more productive population an increasingly vital aspect of sustainable development.

Governor Eno emphasized that governance, not politics, drives this initiative. The move aligns with national energy reforms and responds to the removal of fuel subsidies and global energy volatility. By embracing CNG early, Akwa Ibom shields itself from fuel price shocks and lays the foundation for future transport expansion.