Photo: President Tinubu
By Mandy Park
President Bola Ahmed Tinubu has said Nigerians are already beginning to benefit from lower transportation fares as the Federal Government and state governments expand the use of compressed natural gas (CNG) and electric-powered vehicles for public transportation.
Tinubu, who spoke on Saturday in an update on the National Affordable CNG Transit Programme, said the Federal Government was working with state governments, transport unions, commercial operators and other stakeholders to ensure that the savings from cheaper energy were reflected directly in the fares paid by commuters.
He reiterated the administration’s target of ensuring that more Nigerians experience measurable reductions in transportation costs from October 1, 2026.
According to the President, the initiative followed his August 27 meeting with the governors of the 36 states, during which they agreed to work towards reducing the burden of transportation on Nigerians.
An implementation committee for the National Affordable CNG Transit Programme was subsequently established under the auspices of the Nigeria Governors’ Forum, with Kwara State Governor, AbdulRahman AbdulRazaq, as chairman.
Tinubu said the committee, the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), state governments and other stakeholders were working to identify priority transport corridors and determine the appropriate interventions for each location.
He said the urgency of the programme had increased because of renewed pressure on global energy prices and the consequent impact on petrol, diesel and transportation costs.
The President cited developments in several states as evidence that cheaper energy could translate into lower transport fares.
In Borno State, Tinubu said CNG-powered and electric public transport services were carrying commuters for between ₦50 and ₦100 on routes where commercial operators charged between ₦300 and ₦600.
In Kaduna State, he said 100 CNG-powered buses were providing free transportation on major routes.
According to him, the buses transported about 3.2 million passengers in their first year of operation, saving commuters more than ₦3.5 billion in transportation costs.
Tinubu also cited Oyo State, where CNG buses deployed to Pacesetter Transport reportedly reduced the fare on the Lagos-Ibadan route from about ₦8,000 to ₦3,200 during the initial deployment.
In Adamawa State, he said alternative-energy transit services had reduced some fares by as much as 50 per cent, bringing a fare of about ₦8,000 down to ₦4,000.
In Enugu State, the President said the deployment of 100 CNG buses had reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
He said government-supported buses in Plateau State were carrying about 13,000 commuters daily at ₦200, compared with commercial fares of more than ₦500.
Tinubu also highlighted the impact of CNG-converted commercial vehicles on some routes in the Federal Capital Territory through a partnership with the National Union of Road Transport Workers (NURTW).
According to him, commuters on the Area 1-Gwagwalada route now pay about ₦900 instead of ₦1,500, while the Nyanya fare has dropped from ₦700 to ₦420 and the Wuse fare from ₦400 to ₦240.
He also cited Niger State, where the Suleja-Abuja fare was said to have fallen to ₦550 from about ₦800, while Abia State has deployed 40 electric buses, with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
The President said the Federal Government had spent the past three years developing a CNG transportation ecosystem and that more than 120,000 vehicles had been converted to CNG.
He added that Nigeria now had more than 400 certified conversion centres and over 90 CNG refuelling stations, with further expansion expected. The Pi-CNG & EV initiative has also reported that more than 100,000 additional conversion kits are in the pipeline.
The administration’s CNG programme is part of its broader response to the increase in transportation costs following the removal of the petrol subsidy and the volatility of international energy prices.
Tinubu argued that Nigeria’s abundant natural gas resources provided an opportunity to reduce the country’s exposure to international petroleum price fluctuations.
“Disruptions to global energy supplies are once again pressuring petrol and diesel prices and increasing transportation costs worldwide,” he said.
“Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure.”
The President said several states were already expanding their CNG transportation programmes.
He listed Edo, where 50 CNG buses are reportedly in active service; Kano, where more than 1,000 commercial vehicles have been converted; and Delta, Kwara and Lagos, where CNG-supported transport services are being expanded.
He also said Akwa Ibom had taken delivery of 50 CNG buses ahead of their deployment for commercial operations.
The Federal Government has also been working to expand the infrastructure required to support the transition.
According to the Pi-CNG & EV initiative, more than 100 gas projects are being financed through the Midstream and Downstream Gas Infrastructure Fund, including CNG mother and daughter stations. The initiative says the expansion of conversion centres and refuelling infrastructure is intended to make CNG more accessible to vehicle owners and transport operators.
The Federal Government and state governments have consequently been holding consultations on how to translate the lower operating cost of CNG-powered vehicles into actual fare reductions.
At a September stakeholder engagement, the Pi-CNG & EV initiative said the focus was on aligning federal and state priorities, identifying transport needs in individual states and developing practical frameworks for deploying CNG-powered public transport and the supporting infrastructure.
Tinubu, in his latest statement, urged state governments to maintain the momentum ahead of October 1 by working with transport unions and commercial operators.
He asked the states to support vehicle conversion, facilitate the deployment of CNG and electric buses and provide the infrastructure required for the programme to succeed.
More importantly, he directed that the savings generated by cheaper energy should be passed on to commuters through lower fares.
The President said the government would continue to support the expansion of CNG infrastructure, increase conversion capacity and create opportunities for states, transport operators, manufacturers and private investors to participate in the programme.
He maintained that the objective was not merely to increase the number of CNG vehicles on Nigerian roads but to ensure that ordinary commuters actually feel the economic benefit.
“We must accelerate the cheaper alternatives we have been building at home,” he said.
Tinubu added: “Nigeria has the gas. We are building the infrastructure. We are already seeing the savings. Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day.”
The October 1 target therefore represents the next phase of the Federal Government’s effort to make the CNG transition more visible in everyday transportation, particularly on intra-state and inter-city routes where commuters have continued to bear the effects of high fuel and operating costs.
The success of the programme, however, will depend not only on the availability of CNG-powered vehicles but also on the ability of governments and transport operators to sustain the lower fares, expand refuelling infrastructure and ensure that the savings from cheaper fuel are actually transferred to passengers.
