President Bola Tinubu and state governors have agreed to work towards reducing transportation fares nationwide, with the Federal Government targeting October 1, 2026, for commuters to begin benefiting from lower costs.
Tinubu disclosed this on Thursday after meeting with the Nigeria Governors’ Forum (NGF), saying the initiative would leverage the lower operating costs of Compressed Natural Gas (CNG) and electric vehicles.
The President said a joint federal-state committee would be established immediately to coordinate the implementation of the measures.
According to Tinubu, vehicles running on CNG spend between 60 and 80 per cent less on fuel than petrol-powered vehicles, adding that the savings should be reflected in transport fares.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” he said.
The Federal Government, through the Presidential CNG Initiative, has converted more than 120,000 vehicles nationwide, with over 100,000 additional conversion kits in production.
Tinubu also said an additional 500 CNG refueling stations had been ordered, bringing the planned nationwide network to 1,000 stations.
The move follows the NGF’s backing of the proposed National Affordable CNG Transit Programme (NACTP), a state-led initiative designed to reduce public transport costs. Under the proposal, states would support vehicle conversions, transport fleets, and related infrastructure, while participating operators would commit to reducing fares.
However, the governors said further work was needed on the program’s financing and implementation framework before it could be fully rolled out.
Bayelsa State Governor and NGF spokesperson Douye Diri said cheaper transportation could also help reduce the cost of food and other goods because transport expenses are reflected in the prices consumers pay.
The initiative comes amid continued pressure on Nigerians over high transportation and living costs following the removal of the petrol subsidy in 2023.
Meanwhile, the Director-General of the National Automotive Design and Development Council, Joseph Osanipin, said the number of licensed CNG retail companies in Nigeria had risen to 81 from four previously as the government expands access to the alternative fuel.
