President Bola Ahmed Tinubu and state governors have agreed to take immediate steps to reduce transportation fares across Nigeria, with the Federal Government targeting cheaper fares from October 1 through increased use of compressed natural gas (CNG) and electric vehicles.
Tinubu disclosed this in a statement issued on Thursday, August 27, 2026, from the Aso Villa, Abuja, saying the agreement followed his discussion with the Governors’ Forum earlier in the day. The statement was signed by Bola Ahmed Tinubu, President of the Federal Republic of Nigeria.
The President said the governors had, on their own initiative, resolved to introduce measures to reduce transportation costs in their respective states, particularly by taking advantage of the lower operating costs of CNG and electric vehicles.
“I am pleased with my discussion with the Governors’ Forum this afternoon. The Governors have, on their own initiative, resolved to take immediate measures to bring down the cost of transportation in their states, with a strong focus on leveraging the cost benefits of CNG and electric vehicles,” Tinubu stated.
According to the President, the Federal Government is already investing heavily in the transition from petrol-powered transportation to cleaner and cheaper energy alternatives.
He said more than 120,000 vehicles had so far been converted to CNG nationwide under the Presidential CNG Initiative, while over 100,000 additional conversion kits were in the pipeline.
Tinubu added that the government was simultaneously expanding conversion centres and refuelling infrastructure across the country to support the transition.
He disclosed that the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects nationwide, comprising 15 CNG mother stations and 86 daughter stations.
The President noted that he commissioned four of the projects in Lagos, Abuja and Owerri in May, including a 15-station refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles and 50 trucks and buses daily.
Tinubu further disclosed that he had directed the rollout of an additional 500 CNG refuelling stations nationwide, on top of the 500 stations earlier ordered by the Fund, bringing the planned network to 1,000 stations across the country.
The President said the focus on intra-state transportation was deliberate because that was where Nigerians felt the impact of transportation costs most directly, while state governments controlled the key levers for addressing the challenge.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers. I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” he said.
Tinubu announced that the Federal and state governments would establish a joint committee to commence immediate implementation of measures aimed at translating lower fuel costs into reduced transportation fares.
He said vehicles powered by CNG could spend 60 to 80 per cent less on fuel than comparable petrol-powered vehicles, creating significant potential savings for transport operators.
The President said his administration expected Nigerians to begin benefiting from those savings through lower transport fares from October 1, 2026.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares.
“We have agreed that cheaper fuel should result in cheaper fares!” Tinubu stated.
He urged all tiers of government to continue working together to ensure that the benefits of the energy transition reach ordinary Nigerians.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” the President said.
