President Bola Tinubu and APC governors are working on measures to reduce transport costs nationwide, with the new fares expected to take effect from October 1.
President Bola Tinubu
…States to deploy CNG, electric vehicles to cut intra-state transport costs
President Bola Tinubu and governors elected on the platform of the All Progressives Congress (APC) have agreed to work together to reduce transportation costs across the states, with October 1, 2026 set as the target date for Nigerians to begin benefiting from lower fares.
Tinubu disclosed this on Thursday following his meeting with the APC governors at the State House, Abuja, saying the governors had, on their own initiative, resolved to take immediate measures to bring down the cost of intra-state transportation by leveraging the cost advantages of Compressed Natural Gas (CNG) and electric vehicles.
The President said the move was aimed at translating the gains of the Federal Government’s energy transition programme into tangible relief for Nigerians, particularly commuters who bear the brunt of high transportation costs
According to him, a joint Federal and State committee would be established to commence immediate implementation of the measures agreed with the governors.
“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately,” Tinubu said.
He added that the objective was to ensure that the lower operating costs of CNG-powered vehicles translate directly into cheaper transport fares.
“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol,” the President said.
“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.”
Tinubu noted that intra-state transportation was the area where Nigerians felt the impact of high transport costs most directly, stressing that state governments had the greatest leverage to drive down fares.
“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 said.
The President said the Federal Government had already committed substantial resources to the transition from petrol-powered transportation to cleaner and cheaper energy sources.
He disclosed that more than 120,000 vehicles had so far been converted to CNG nationwide under the Presidential CNG Initiative, while over 100,000 additional conversion kits were being processed.
He said the government was also expanding CNG conversion centres and refuelling infrastructure across the country to support the growing fleet of gas-powered vehicles.
Tinubu further disclosed that the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas infrastructure projects nationwide, comprising 15 CNG mother stations and 86 daughter stations.
According to him, four of the projects were commissioned in May in Lagos, Abuja and Owerri, including a 15-station CNG refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles and 50 trucks and buses daily.
The President also said he had directed the additional rollout of 500 CNG refuelling stations nationwide, on top of the 500 stations earlier ordered by the Fund, bringing the planned network to 1,000 stations across the country.
He stressed that the success of the initiative would depend on sustained cooperation among the Federal Government and the states.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” Tinubu said.
The President expressed satisfaction with the outcome of his engagement with the APC governors, describing their decision to act on transportation costs as an important step towards ensuring that the benefits of the country’s energy transition reach ordinary Nigerians.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said, reaffirming his administration’s commitment to putting the interests of Nigerians at the centre of its policies.
