President Bola Ahmed Tinubu and state governors have agreed to work together to reduce transportation fares nationwide from October 1, 2026, by leveraging cheaper fuel alternatives such as Compressed Natural Gas (CNG) and electric vehicles.
The President disclosed this on Thursday after discussions with the Nigeria Governors’ Forum, saying the governors had resolved to take immediate measures to bring down the cost of intra-state transportation in their respective states.
Key Highlights
- Transport fares are targeted for reduction from October 1, 2026.
- Tinubu said governors would leverage CNG and electric vehicles to reduce transportation costs.
- More than 120,000 vehicles have been converted to CNG nationwide.
- Over 100,000 additional CNG conversion kits are in the works.
- The Federal Government is supporting more than 100 gas projects, including CNG mother and daughter stations.
- Tinubu has directed the rollout of 500 additional CNG refuelling stations, taking the planned total to 1,000 stations.
The President said CNG vehicles can spend 60 to 80 per cent less on fuel than petrol-powered vehicles.
A joint Federal and State committee will oversee implementation.
Tinubu: Cheaper Fuel Should Mean Cheaper Transport Fares
Tinubu said the agreement with the governors was aimed at ensuring that Nigerians benefit directly from the savings created by the transition to cheaper and cleaner energy sources.
“I am pleased with my discussion with the Governors’ Forum this afternoon. The Governors have, on their own initiative, resolved to take immediate measures to bring down the cost of transportation in their states, with a strong focus on leveraging the cost benefits of CNG and electric vehicles,” he said.
The President noted that the Federal Government was already investing heavily in the energy transition through the Presidential CNG Initiative, which he said had resulted in more than 120,000 vehicles being converted nationwide.
He added that more than 100,000 additional conversion kits were currently being produced, while the government was expanding CNG conversion centres and refuelling infrastructure across the country.
FG Expands CNG Infrastructure
Tinubu said the Federal Government was also financing more than 100 gas projects through the Midstream and Downstream Gas Infrastructure Fund.
According to him, the projects include 15 CNG mother stations and 86 daughter stations.
The President said four of the projects were commissioned in May across Lagos, Abuja and Owerri. They include a 15-station CNG refuelling network in Lagos and a facility in Abuja capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.
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He disclosed that he had also directed the rollout of another 500 CNG refuelling stations nationwide.
The additional stations are in addition to the 500 stations previously ordered by the Fund, bringing the planned nationwide total to 1,000 CNG refuelling stations.
Governors to Drive Intra-State Transport Reduction
Tinubu said intra-state transportation was the area where Nigerians experienced transport costs most directly and where state governments had significant control.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” the President said.
He expressed optimism that the governors’ decision would help bring the benefits of the Federal Government’s CNG programme closer to Nigerians.
To coordinate the implementation, Tinubu said the Federal Government and state governments had agreed to establish a joint committee that would begin work immediately.
CNG Vehicles Can Cut Fuel Costs by Up to 80%
According to Tinubu, vehicles running on CNG can spend between 60 and 80 per cent less on fuel than comparable petrol-powered vehicles.
He said the government wants Nigerians to begin benefiting from these savings through lower transport fares from October 1.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” Tinubu said.
“We have agreed that cheaper fuel should result in cheaper fares.”
The President urged all tiers of government to continue working together to reduce the economic burden on Nigerians.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
