President Bola Tinubu and state governors have agreed to work together to reduce transportation costs nationwide, with the Nigerian government targeting lower fares from October 1, 2026.
Tinubu disclosed this on Thursday after meeting with members of the Nigeria Governors’ Forum, saying the governors resolved to take immediate steps to bring down intra-state transportation costs by taking advantage of cheaper Compressed Natural Gas (CNG) and electric vehicles.
The President said the initiative was aimed at ensuring that the benefits of the Federal Government’s ongoing energy transition programme translate into direct savings for Nigerians who rely heavily on public transportation.
“I am pleased with my discussion with the Governors’ Forum this afternoon,” Tinubu said in a statement he personally signed and issued from the Aso Villa, Abuja.
“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 said the initiative was aimed at ensuring that the benefits of the Federal Government’s ongoing energy transition programme translate into direct savings for Nigerians who rely heavily on public transportation.
“I am pleased with my discussion with the Governors’ Forum this afternoon,” Tinubu said in a statement he personally signed and issued from the Aso Villa, Abuja.
“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 Nigerian government had already invested heavily in the transition from petrol-powered vehicles to alternative energy sources through the Presidential CNG Initiative.
According to him, more than 120,000 vehicles have so far been converted to CNG nationwide, while over 100,000 additional conversion kits are currently being processed.
He added that the government was expanding conversion centres and refuelling infrastructure across the country to support the growing number of CNG-powered vehicles.
The President also disclosed that the Nigerian government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects across Nigeria.
The projects, he said, include 15 CNG mother stations and 86 daughter stations.
“In May, I commissioned four of these projects in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and an Abuja facility that can serve 1,000 cars and tricycles and 50 trucks and buses a day,” he said.
Tinubu further announced that he had directed the rollout of an additional 500 CNG refuelling stations nationwide.
This, he said, is in addition to the 500 stations previously ordered by the Midstream and Downstream Gas Infrastructure Fund, bringing the total number of planned stations under the programme to 1000.
The President said the focus on intra-state transportation was deliberate because transportation costs within states directly affect the daily lives of Nigerians, while state governments have significant influence over the sector.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” he said.
“I am encouraged that our governors are moving to bring these benefits closer to the people they serve.”
The announcement comes amid continued concerns over the high cost of transportation, which has significantly increased the financial burden on Nigerian households and workers.
Tinubu said the Nigerian government and the states had agreed to establish a joint committee that would immediately begin implementing measures aimed at translating lower energy costs into reduced transportation fares.
“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately,” he said.
The President claimed that vehicles powered by CNG could achieve substantial savings compared with petrol-powered vehicles.
“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol,” Tinubu said.
He stated that the government’s target was for Nigerians to begin benefiting from the savings through reduced transportation fares from October 1.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” he said. “We have agreed that cheaper fuel should result in cheaper fares.”
Tinubu also called on the Federal Government, state governments and other tiers of government to coordinate their efforts to ensure that the benefits of the energy transition reach ordinary Nigerians.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
The announcement will place pressure on state governments and transport operators to ensure that any reduction in fuel costs from CNG adoption translates into actual reductions in fares paid by commuters.
Tinubu’s latest directive also signals a renewed push by the administration to expand the use of CNG as an alternative to petrol and reduce the impact of fuel costs on transportation and household expenses.
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