FG, Governors Set October Target for Cheaper Transport as CNG Programme Expands

The Federal Government and state governors have agreed to work together to reduce transportation costs across Nigeria, with lower fares targeted from October 1, 2026.

President Bola Tinubu announced the plan after discussions with the Nigeria Governors’ Forum, saying the states had agreed to take immediate steps to ensure that savings from cheaper fuel are reflected in what commuters pay.

The plan will rely heavily on Compressed Natural Gas (CNG) and electric vehicles, which the government says can reduce the cost of running public transport compared with petrol-powered vehicles.

Tinubu said vehicles operating on CNG can spend between 60 and 80 per cent less on fuel than similar vehicles running on petrol. The government wants commuters to begin benefiting from those savings through reduced fares.

To coordinate the implementation, the President said a joint Federal Government and state government committee would be established immediately.

The Federal Government also provided an update on its CNG conversion programme. Tinubu said more than 120,000 vehicles have already been converted to CNG nationwide, while more than 100,000 additional conversion kits are being prepared.

The government is also expanding the infrastructure needed to make CNG more accessible. According to Tinubu, more than 100 gas projects are being financed through the Midstream and Downstream Gas Infrastructure Fund.

Among these projects are 15 CNG mother stations and 86 daughter stations, aimed at increasing the availability of CNG for motorists and transport operators.

Tinubu also announced plans to increase the number of CNG refuelling stations nationwide to 1,000. This includes 500 additional stations ordered under the latest expansion, on top of another 500 stations previously approved.

The President said the reduction in transport costs was particularly important at the state level because intra-state transportation directly affects the daily expenses of millions of Nigerians.

The initiative is also expected to have an effect beyond transport. Lower commuting costs could reduce the cost of moving food, goods and other products from one location to another, potentially easing pressure on consumers.

The announcement comes as Nigerians continue to deal with high transportation costs following the removal of petrol subsidy and the rise in the cost of operating petrol-powered vehicles.

The Federal Government and governors will now face the task of turning the announcement into actual fare reductions. The success of the programme will depend not only on the availability of CNG buses and conversion facilities but also on whether the savings are passed directly to passengers.

For commuters, the key date is October 1, when the government hopes the benefits of cheaper fuel will begin to translate into cheaper transport fares across the country.

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