President Bola Ahmed Tinubu has announced plans by the Federal Government and state governors to reduce transportation fares across Nigeria, with the initiative expected to take effect from October 1, 2026.
The President disclosed this on Thursday, August 27, following discussions with the Governors’ Forum, saying the governors had agreed to take immediate steps to lower transportation costs in their respective states.
Tinubu said the initiative would focus largely on the use of Compressed Natural Gas (CNG) and electric vehicles, which he said could significantly reduce the cost of operating commercial transport.
According to the President, vehicles powered by CNG spend between 60 and 80 per cent less on fuel than petrol-powered vehicles. He therefore stressed that the savings from cheaper fuel should translate into lower fares for commuters.
The Federal Government, he noted, has already converted more than 120,000 vehicles to CNG under the Presidential CNG Initiative, while over 100,000 additional conversion kits are being processed.
He added that the government is expanding CNG conversion centres and refuelling infrastructure nationwide to support the transition.
Tinubu also disclosed that the Midstream and Downstream Gas Infrastructure Fund is financing more than 100 gas projects across the country, including 15 CNG mother stations and 86 daughter stations.
He said four of the projects had been commissioned in Lagos, Abuja and Owerri in May, including a 15-station refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles, as well as 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 previously ordered by the Fund. This brings the planned total to 1,000 CNG refuelling stations across the country.
Tinubu emphasised that intra-state transportation is where Nigerians feel the impact of high transport costs most directly and noted that state governments have a critical role to play in addressing the situation.
To coordinate implementation, the President said a joint Federal and State committee would be established to begin work immediately.
He expressed optimism that Nigerians would start benefiting from reduced transport fares from October 1, saying the objective was to ensure that lower fuel costs translate directly into cheaper transportation.
“We have agreed that cheaper fuel should result in cheaper fares!”
The President called on all levels of government to continue working together to ensure that the benefits of the energy transition reach Nigerians.