Tinubu announces plans to reduce transport fares nationwide from October 1

President Bola Tinubu has announced that state governors have resolved to leverage compressed natural gas (CNG) and electric vehicles (EVs) to lower transportation costs from October 1, 2026.

The disclosure was contained in a statement issued by the President via his official X page on Thursday.

Tinubu said the governors, under the aegis of the Nigeria Governors’ Forum (NGF), would take immediate measures to bring down transportation costs in their respective states, particularly by taking advantage of the lower operating costs of CNG and electric vehicles.

What President Tinubu is saying

The President said he was pleased with his discussion with the governors and that they had, on their own initiative, resolved to take immediate measures to reduce transportation costs across their states.

• “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,” the President stated.
• “From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” he added.

Tinubu said the Federal Government was already investing significantly in the energy transition through the Presidential CNG Initiative, with more than 120,000 vehicles converted nationwide and over 100,000 additional conversion kits in the works.

He said the government was also expanding CNG conversion centres and refuelling infrastructure across the country.

Tinubu said intra-state transportation is where Nigerians feel transportation costs most directly, adding that state governments have the levers to bring the benefits of cheaper fuel closer to commuters.

The Federal and state governments have also agreed to establish a joint committee to begin implementing measures aimed at reducing transport costs immediately.

CNG infrastructure expansion

Tinubu said the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, is financing more than 100 gas projects across the country.

• The projects include 15 CNG mother stations and 86 daughter stations.
• Tinubu highlighted facilities commissioned in Lagos, Abuja and Owerri in May.
• A 15-station CNG refuelling network is being developed in Lagos, while an Abuja facility can serve 1,000 cars and tricycles and 50 trucks and buses daily.
• The President has directed the rollout of another 500 CNG refuelling stations nationwide, in addition to the 500 previously ordered by the Fund.

This brings the total planned rollout under the programme to 1,000 CNG refuelling stations nationwide.

Flashback

The Federal Government introduced the CNG initiative in 2023 following the removal of the petrol subsidy, positioning the fuel as a cheaper and cleaner alternative aimed at reducing transportation costs.

• The initial programme targeted more than 11,500 new CNG-enabled vehicles and 55,000 conversion kits for existing petrol-powered vehicles.

The programme also sought to support local vehicle manufacturing, assembly and job creation.

• In August 2023, Tinubu announced plans to deploy CNG buses across states and local governments to cushion the impact of the subsidy removal.

The Federal Government subsequently provided N100 billion for the acquisition of 3,000 20-seater CNG-powered buses for mass transit.

Tinubu has repeatedly urged transport operators to pass the savings from cheaper CNG to commuters, arguing that the benefits of the fuel transition should ultimately reflect in lower passenger fares.

What you should know

Nairametrics earlier reported that the CNG sector had attracted more than $2 billion in private-sector investments over two years.

Despite the investment, the Federal Government remained behind its 2025 targets for nationwide CNG infrastructure.

The latest plan to lower transport fares from October 1 will therefore depend on the availability of CNG and EV vehicles, conversion facilities, refuelling stations and adequate gas supply across the states.