BY Emmanuel Thomas l Thursday, August 27, 2026
ABUJA — President Bola Ahmed Tinubu and the 36 State Governors have agreed to take immediate, coordinated steps to drastically reduce public transportation fares across the country, leveraging the lower costs of Compressed Natural Gas (CNG) and electric vehicles.
Speaking following a high-level meeting with the Nigeria Governors’ Forum (NGF) at the State House, Abuja, on Thursday, President Tinubu declared that the ongoing transition to cheaper alternative fuels must directly translate to relief for Nigerian commuters.
According to the President, state governments have pledged to take the lead in enforcing fare reductions within their respective jurisdictions, setting an operational target of October 1, 2026, for citizens to begin enjoying lower transport tariffs.
”Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers. We have agreed that cheaper fuel should result in cheaper fares!”
— President Bola Ahmed Tinubu
To ensure smooth delivery, the Federal Government and the state executives resolved to establish a joint implementation committee to harmonize policies, accelerate local vehicle conversion programs, and streamline CNG infrastructure deployment nationwide.
1,000 CNG Refuelling Stations Targeted Nationwide
Detailing progress under the Presidential CNG Initiative (P-CNGi), President Tinubu highlighted key infrastructural milestones achieved by the Federal Government to cushion the impact of energy transition:
Vehicle Conversions: Over 120,000 vehicles have been converted to run on gas nationwide, with an additional 100,000 conversion kits currently in production.
Expanded Refuelling Network: The President directed the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to roll out an additional 500 CNG refuelling stations, doubling the target to 1,000 stations across the federation.
Infrastructure Pipeline: The MDGIF is currently financing over 100 gas projects, including 15 CNG mother stations and 86 daughter stations. This builds on facilities commissioned earlier in the year across Abuja, Lagos, and Owerri.
Data released by the Presidency indicates that vehicles operating on CNG cut fuel expenditure by 60 to 80 per cent compared to traditional Premium Motor Spirit (PMS).
Since the full deregulation of the downstream petroleum sector and the removal of the petrol subsidy in May 2023, transport fares across Nigeria have soared, driving up headline inflation and the cost of living. In response, the Tinubu administration launched the Presidential CNG Initiative as a strategic pathway to utilize Nigeria’s abundant 200+ trillion cubic feet of natural gas reserves for domestic mobility.
While the Federal Government has driven the distribution of conversion kits and commercial gas infrastructure, the authority to regulate local bus routes, commercial tricycles, motor parks, and intra-state transport tariffs rests primarily with State Governments.
Thursday’s resolution marks the first unified, cross-tier operational framework between Aso Rock and State Governors to mandate that operational savings from gas conversion are directly passed down to commuters at the bus stops.
“CHEAPER FUEL MUST MEAN CHEAPER TRANSPORT FARES”: PRESIDENT TINUBU, GOVERNORS MOVE TO CUT TRANSPORT FARES NATIONWIDE
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.
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.
The Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, is currently financing more than 100 gas projects across the country, including 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.
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.
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.
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!
Each tier of government must keep doing its part and work together for the benefit of every Nigerian.
Nigeria First.
Bola Ahmed Tinubu
President of the Federal Republic of Nigeria
The Aso Villa
Abuja
27 August, 2026
@NigeriaGov @NGRPresident
