President Bola Ahmed Tinubu and state governors have agreed to work towards reducing transportation costs across Nigeria, with October 1, 2026, set as the target date for commuters to begin benefiting from lower fares.
The initiative will rely heavily on the growing adoption of Compressed Natural Gas (CNG) and electric vehicles, particularly for intra-state transportation, where rising fares have placed additional pressure on households and businesses.
Tinubu disclosed the development after discussions with the Nigeria Governors’ Forum, saying the governors had resolved to take immediate steps to bring down transportation costs in their respective states.
According to the President, a joint Federal Government-state committee will be established to coordinate implementation and ensure that savings from cheaper alternative fuels translate into lower fares for passengers.
“Cheaper fuel should result in cheaper fares,” Tinubu said, setting October 1 as the date by which Nigerians should begin to see the expected benefit.
The President said more than 120,000 vehicles have already been converted to CNG nationwide, while conversion kits for more than 100,000 additional vehicles are being processed.
The Federal Government is also financing more than 100 gas projects through the Midstream and Downstream Gas Infrastructure Fund, including CNG mother and daughter stations. Tinubu said another 500 CNG refuelling stations had been ordered in addition to 500 previously approved, bringing the planned nationwide total to 1,000.
Tinubu further claimed that vehicles operating on CNG can spend between 60 and 80 per cent less on fuel than comparable petrol-powered vehicles.
The administration now wants those operational savings to be reflected in the amount Nigerians pay for transportation.
The initiative comes against the backdrop of persistent increases in transport costs following the removal of petrol subsidy, with transportation costs also contributing to higher prices of food and other goods.
However, the success of the plan will depend on how effectively federal and state authorities work with transport operators to ensure that reduced operating costs are actually passed on to commuters.