President Bola Tinubu on Thursday disclosed that state governors have resolved, on their own initiative, to reduce the cost of transportation nationwide.
He said a joint federal-state committee would be established immediately to ensure that cheaper compressed natural gas translates into lower transport fares for commuters from October 1, 2026.
In a personal statement titled ‘Cheaper Fuel Must Mean Cheaper Transport Fares President Tinubu, Governors Move to Cut Transport Fares Nationwide,’ the President said his discussion with the Nigeria Governors’ Forum on Thursday afternoon produced a firm commitment from governors to leverage the cost benefits of CNG and electric vehicles to bring down transportation costs in their states.
He stated, “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.”
He disclosed the scale of the Federal Government’s ongoing investment in the energy transition through the Presidential CNG Initiative.
“The Federal Government is already investing significantly in this energy transition.
“Through the Presidential CNG Initiative, over 120,000 vehicles have been converted nationwide, with more than 100,000 additional conversion kits in the works.
“At the same time, we continue to expand conversion centres and refuelling infrastructure nationwide,” he added.
Tinubu said the Midstream and Downstream Gas Infrastructure Fund was currently financing more than 100 gas projects across the country, including 15 CNG mother stations and 86 daughter stations, recalling that he had inaugurated four of these projects in Lagos, Abuja and Owerri in May.
“This included 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,” Tinubu added.
He announced a further expansion of the programme, saying, “I have also directed the additional rollout of another 500 CNG refuelling stations nationwide, in addition to the 500 stations ordered earlier in the year by the Fund, bringing the programme to 1,000 stations across the country.”
Explaining the rationale for placing the responsibility partly in the hands of state governments, Tinubu argued that intra-state transport was where the impact of high fuel costs is felt most directly by ordinary Nigerians, and where states hold the greatest regulatory leverage.
According to the President, “Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers. I am encouraged that our Governors are moving to bring these benefits closer to the people they serve.”
He disclosed that a joint federal and state committee would be established immediately to begin implementing the measures.
He also cited the scale of potential savings, saying the economics of CNG adoption left no justification for fares to remain unchanged.
“We have agreed to set up a joint federal and state committee to begin implementing these measures immediately. A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares. We have agreed that cheaper fuel should result in cheaper fares,” he said.
The President called for coordinated action across all tiers of government to deliver on the commitment, stating that “Each tier of government must keep doing its part and work together for the benefit of every Nigerian. Nigeria First.”
Thursday’s announcement by the President comes days after Tinubu appealed to stakeholders that the savings from CNG-conversions should be passed to commuters through reduced fares.
Addressing journalists on Wednesday after meeting President Tinubu at Aso Rock, Director-General of the National Automotive Design and Development Council, Joseph Osanipin, disclosed that the number of licensed CNG retail firms nationwide had risen from four to 81, even as fleet operators continued to resist transferring the benefits of cheaper fuel to passengers.
Earlier on Thursday, the NGF threw its weight behind a proposed National Affordable CNG Transit Programme aimed at reducing transportation fares and easing the impact of fuel subsidy removal on Nigerians.
