Tinubu, Governors Target Lower Transport Fares from October 1 with 1,000 CNG Stations Nationwide
President Bola Tinubu has announced a coordinated plan with state governors to reduce transport fares across Nigeria from October 1, with the policy expected to rely heavily on compressed natural gas and electric vehicles.
The President disclosed this after a meeting with the Governors’ Forum, saying the governors had resolved to take immediate steps to bring down the cost of transportation in their states. He said the focus would be on allowing commuters to benefit from the lower operating costs of vehicles powered by compressed natural gas.
Tinubu said the Federal Government was already investing significantly in the country’s energy transition through the Presidential CNG Initiative.
According to him, more than 120,000 vehicles have been converted to CNG nationwide, while over 100,000 additional conversion kits are being processed.
He added that the government was expanding CNG conversion centres and refuelling infrastructure across the country to support wider adoption of the alternative fuel.
The President also said the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide, including 15 CNG mother stations and 86 daughter stations. He noted that 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 as well as 50 trucks and buses daily.
Tinubu further revealed that he had directed the rollout of an additional 500 CNG refuelling stations nationwide. This is in addition to 500 stations earlier ordered by the Fund, bringing the planned total to 1,000 CNG refuelling stations across Nigeria.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” the President said, adding that he was encouraged that governors were moving to bring the benefits of cheaper fuel closer to residents.
To coordinate the process, Tinubu said the Federal Government and state governments had agreed to establish a joint committee to begin implementing the transport fare reduction measures immediately.
According to him, vehicles running on CNG spend between 60 and 80 percent less on fuel than petrol-powered vehicles. He said the government’s goal was for Nigerians to start sharing in those savings through lower transport fares from October 1.
“We have agreed that cheaper fuel should result in cheaper fares,” Tinubu said.
The announcement comes as state governors consider a proposed National Affordable CNG Transit Programme, a state-led initiative designed to convert the lower operating cost of CNG into reduced passenger fares.
Under the proposal, states are expected to support vehicle conversions, transport fleets, and enabling infrastructure, while participating operators would commit to fare reductions.
