TD ABUJA, FCT — President Bola Ahmed Tinubu has announced plans by the Federal Government and state governors to reduce transportation fares nationwide, with a particular focus on the cost savings associated with Compressed Natural Gas (CNG) and electric vehicles.
Tinubu disclosed this in a statement on Thursday, August 27, 2026, following discussions with the Nigeria Governors’ Forum, saying the governors had resolved, on their own initiative, to take immediate measures to lower transportation costs in their respective states.
According to the President, intra-state transportation is where Nigerians experience the impact of fuel costs most directly, making state governments critical to efforts to translate cheaper energy into lower fares.
“I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” Tinubu said.
The President said the Federal Government was already investing heavily in the transition to alternative energy, particularly through the Presidential CNG Initiative.
He said more than 120,000 vehicles have been converted to CNG nationwide, while conversion kits for more than 100,000 additional vehicles are currently in the works.
Tinubu also said the government was expanding CNG conversion centres and refuelling infrastructure across the country.
He disclosed that the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects, comprising 15 CNG mother stations and 86 daughter stations, among other projects.
The President said four of the projects were commissioned in May in Lagos, Abuja and Owerri. These included a 15-station CNG refuelling network in Lagos and a facility in Abuja capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.
Tinubu further announced that he had directed the rollout of 500 additional CNG refuelling stations nationwide, on top of the 500 stations earlier ordered by the Fund.
This, he said, would bring the planned national CNG refuelling network to 1,000 stations.
The President said the economic advantage of CNG could be substantial for commercial transport operators, noting that vehicles running on CNG spend between 60 and 80 per cent less on fuel than comparable vehicles running on petrol.
He said the Federal and state governments had agreed to establish a joint committee to begin implementing measures aimed at translating those savings into lower transportation costs.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” Tinubu said.
“We have agreed that cheaper fuel should result in cheaper fares!”
The President called for continued cooperation among the three tiers of government, stressing that each level must play its part in ensuring that the benefits of the 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.
The announcement comes amid sustained concerns over the cost of transportation and its wider impact on household expenses, food prices and economic activity.
The implementation of the new measures, particularly the extent to which CNG savings are reflected in actual fares from October 1, will therefore be closely watched by commuters and transport operators nationwide.
