President Bola Ahmed Tinubu and state governors have agreed to take immediate steps to reduce transportation fares nationwide, with the Federal Government targeting lower fares from October 1, 2026.
The agreement followed Tinubu’s discussion with the Governors’ Forum on Thursday, where the governors resolved to leverage the lower operating costs of Compressed Natural Gas (CNG) and electric vehicles to bring down transportation costs in their respective states.
Tinubu, in a statement issued after the meeting, said a joint Federal and State committee would be established to immediately begin implementing measures aimed at translating cheaper fuel into lower transport fares.
According to him, vehicles powered by CNG spend between 60 and 80 per cent less on fuel than petrol-powered vehicles.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” the President said.
He added that “cheaper fuel should result in cheaper fares,” stressing that intra-state transportation was where Nigerians felt the impact of high transport costs most directly.
The President said the Federal Government had already converted more than 120,000 vehicles to CNG nationwide through the Presidential CNG Initiative, while more than 100,000 additional conversion kits were in the works.
He said the government was also expanding CNG conversion centres and refuelling infrastructure across the country.
Tinubu disclosed that the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide, including 15 CNG mother stations and 86 daughter stations.
According to him, four of the projects were commissioned in May across Lagos, Abuja and Owerri. They included a 15-station CNG refuelling network in Lagos and a facility in Abuja capable of serving 1,000 cars and tricycles as well as 50 trucks and buses daily.
The President further announced the rollout of an additional 500 CNG refuelling stations nationwide, in addition to the 500 stations previously ordered by the Fund, bringing the planned number of stations to 1,000 across the country.
He said the initiative was intended to ensure that the savings associated with the Federal Government’s energy transition programme were passed on to Nigerians through lower transportation costs.
Tinubu also stressed the need for cooperation among the Federal Government and state governments to achieve the objective.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
The announcement comes as the Federal Government continues to promote CNG adoption as an alternative to petrol, following the removal of the petrol subsidy and the subsequent increase in transportation costs.
One Comment