President Bola Tinubu has given details of the Federal Government’s plan to reduce transportation fares across the country from October 1, 2026, citing cheaper fares already recorded in some states through the use of Compressed Natural Gas (CNG)-powered and electric vehicles.
Tinubu said the plan followed his August 27 meeting with the 36 state governors, where they agreed on measures to reduce transportation costs and ease the pressure of rising living costs on Nigerians.
In a statement on Saturday (today), the President said an implementation committee for the National Affordable CNG Transit Programme had since been established under the Nigeria Governors’ Forum.
He said the committee, the Presidential Initiative on CNG and Electric Vehicles, the states and other stakeholders were already working to identify priority transport routes and determine the interventions needed.
“On August 27, I met with the governors of our 36 states, and we agreed on a clear objective. From October 1, more Nigerians should begin to see measurable reductions in transportation costs,” Tinubu said.
The President said the plan had become more urgent because of the current global energy crisis and its impact on petrol, diesel and transportation costs.
He pointed to several states where CNG-powered and electric transport services had already reduced fares.
“In Borno, CNG-powered and electric public transport services are moving commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600,” he said.
Tinubu said Kaduna had deployed 100 CNG-powered buses providing free transportation on major routes across the state.
According to him, the buses carried about 3.2 million passengers in their first year and saved commuters more than ₦3.5 billion in transportation costs.
In Oyo State, he said CNG buses deployed to Pacesetter Transport reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.
He added that alternative-energy transport services in Adamawa had reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000.
In Enugu, Tinubu said the deployment of 100 CNG buses had reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
He also said government-supported buses in Plateau transport about 13,000 commuters every day for ₦200, compared with more than ₦500 charged by commercial operators.
Tinubu said the Federal Government’s partnership with the National Union of Road Transport Workers (NURTW), had also resulted in lower fares on some Abuja commuter routes.
According to him, passengers using CNG-converted commercial vehicles on the affected routes receive a 40 per cent reduction in fares.
He said the Area 1-Gwagwalada fare had dropped from ₦1,500 to ₦900, while the Nyanya fare reduced from ₦700 to ₦420.
The Wuse route, he added, had also dropped from ₦400 to ₦240.
Tinubu said passengers travelling from Suleja to Abuja in Niger State were paying ₦550 instead of about ₦800.
He added that Abia had deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” he said.
Tinubu Rejects Return To Petrol Subsidy
The President commended governors who had introduced CNG-powered transportation but said more needed to be done to expand the programme.
He assured the states of Federal Government support to increase their CNG transport fleets and infrastructure.
“Disruptions to global energy supplies are once again pressuring petrol and diesel prices and increasing transportation costs worldwide,” Tinubu said.
“Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure. That is what we have been doing.”
Tinubu said his administration had spent the past three years building a CNG transportation system across Nigeria.
He said more than 120,000 vehicles had been converted, with over 400 certified conversion centers and more than 90 CNG refueling stations now operating across the country.
The President also rejected calls for a return to the petrol subsidy regime, saying it had consumed trillions of naira and exposed the economy to changes in international oil prices.
“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumed trillions of naira and left our economy exposed to every movement in international oil prices, as some have suggested.
“We must accelerate the cheaper alternatives we have been building at home,” he said.
Tinubu said the CNG transport programme was expanding to more states.
He said Edo currently had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles and was expanding its conversion and refuelling network.
He added that Delta, Kwara and Lagos were expanding CNG-supported transport services.
According to him, Akwa Ibom had also taken delivery of 50 CNG buses ahead of their commercial operations.
“I encourage every state to maintain the momentum towards October 1. Work with transport unions and commercial operators. Support conversion and fleet deployment. Facilitate the infrastructure required.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares.
“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings. Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day,” he said.
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