President Bola Ahmed Tinubu has announced plans by the Federal Government and state governors to reduce transportation fares nationwide, leveraging the lower operating costs of Compressed Natural Gas (CNG) and electric vehicles.
Tinubu disclosed this in a statement on Thursday following his meeting with the Nigeria Governors’ Forum, saying the governors had resolved to take immediate measures to bring down transportation costs in their respective states.
According to the President, the initiative is expected to begin yielding benefits to Nigerians from October 1, 2026, with the government targeting lower intra-state transport fares.
“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,” Tinubu said.
The President noted that the Federal Government was already investing heavily in the country’s energy transition through the Presidential CNG Initiative.
He said more than 120,000 vehicles have been converted to CNG nationwide, while over 100,000 additional conversion kits are currently in the works.
Tinubu added that the government was expanding CNG conversion centres and refuelling infrastructure across the country to facilitate wider adoption of the alternative fuel.
He disclosed that the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects, comprising 15 CNG mother stations and 86 daughter stations.
According to him, four of the projects were commissioned in May in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles and 50 trucks and buses daily.
The President further revealed that he had directed the rollout of an additional 500 CNG refuelling stations nationwide, on top of the 500 stations earlier ordered by the Fund, bringing the planned total to 1,000 stations across the country.
Tinubu stressed that intra-state transportation was where Nigerians experienced the impact of high transport costs most directly, adding that state governments had a crucial role to play in ensuring that the savings from cheaper fuel translated into reduced fares.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers. I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” he said.
To drive implementation, the President said the Federal and state governments had agreed to establish a joint committee to commence work on the measures immediately.
He explained that vehicles powered by CNG could spend between 60 and 80 per cent less on fuel than petrol-powered vehicles, stressing that commuters should begin to benefit from the savings.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares.
“We have agreed that cheaper fuel should result in cheaper fares!” Tinubu declared.
The President called on all tiers of government to continue working together to ensure that the benefits of the energy transition translated into improved economic conditions for Nigerians.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
Tinubu concluded the statement with his administration’s “Nigeria First” mantra.
