By Lizzy Chirkpi
President Bola Ahmed Tinubu has announced plans by the Federal Government and state governors to reduce transportation fares nationwide from October 1, 2026, following the adoption of cheaper Compressed Natural Gas (CNG) and electric vehicles.
Tinubu disclosed this on Thursday, August 27, after discussions with the Nigeria Governors’ Forum, saying the governors had agreed to take immediate measures to reduce transportation costs in their respective states.
The President said the initiative would focus particularly on intra-state transportation, where Nigerians feel the impact of high transport costs most directly.
“We have agreed that cheaper fuel should result in cheaper fares!” Tinubu said.
According to him, the Federal Government has invested significantly in the transition to alternative energy, with more than 120,000 vehicles converted to CNG nationwide under the Presidential CNG Initiative.
He added that more than 100,000 additional conversion kits were being processed, while the government was expanding CNG conversion centres and refuelling infrastructure across the country.
Tinubu also said the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide, comprising 15 CNG mother stations and 86 daughter stations.
He further disclosed that he had directed the rollout of an additional 500 CNG refuelling stations nationwide, in addition to the 500 stations previously ordered by the Fund, bringing the planned total to 1,000 stations.
The President said the economic benefits of CNG were substantial, noting that vehicles powered by the fuel could spend between 60 and 80 per cent less on fuel than petrol-powered vehicles.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” he said.
To ensure implementation, Tinubu said the Federal Government and state governments had agreed to establish a joint committee that would immediately begin work on measures to translate lower fuel costs into reduced transport fares.
He stressed that state governments had a particularly important role to play because of their control over intra-state transportation.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” the President said.
Tinubu said the initiative underscored the need for all levels of government to work together to ensure that Nigerians benefit directly from the country’s ongoing energy transition.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
He described the initiative as part of his administration’s broader efforts to ensure that the benefits of cheaper and cleaner energy translate into tangible relief for ordinary Nigerians.