President Bola Ahmed Tinubu has directed state governments to accelerate the rollout of compressed natural gas (CNG) and other alternative-energy transport schemes as part of efforts to reduce transportation costs for Nigerians from October 1, 2026.
Tinubu disclosed this in a statement issued on Saturday, September 19, 2026, saying he and the 36 state governors had agreed on August 27 that Nigerians should begin to see measurable reductions in transport fares from October.
The President said an implementation committee for the National Affordable CNG Transit Programme had subsequently been established under the auspices of the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.
According to Tinubu, the committee, the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), state governments and other stakeholders were already working to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.
He said the programme had become more urgent amid renewed pressure on global energy supplies, which has affected petrol and diesel prices and, consequently, transportation costs.
Tinubu pointed to existing CNG and electric-powered transport initiatives in several states as evidence that cheaper energy could translate into lower fares.
In Borno, he said, CNG-powered and electric public transport services were carrying commuters for between N50 and N100 on routes where commercial operators charged between N300 and N600.
In Kaduna, the President said 100 CNG buses were providing free transportation on major routes and had carried about 3.2 million passengers during their first year of operation, saving commuters more than N3.5 billion in transport costs.
Tinubu also said CNG buses deployed to Pacesetter Transport in Oyo State had reduced the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial deployment.
In Adamawa, he said alternative-energy transit services had cut fares by as much as 50 per cent, from N8,000 to N4,000, while in Enugu, where 100 CNG buses had been deployed, the Enugu-Nsukka fare had dropped from N2,500 to N1,500.
“In Plateau, government-supported buses carry about 13,000 commuters every day at ₦200, compared with more than ₦500 commercially,” Tinubu said.
The President also cited fare reductions recorded on Abuja commuter routes through the Federal Government’s partnership with the National Union of Road Transport Workers (NURTW).
According to him, the Area 1-Gwagwalada fare had fallen from N1,500 to N900, Nyanya from N700 to N420, and Wuse from N400 to N240 for passengers using CNG-converted commercial vehicles.
He added that passengers on the Suleja-Abuja route in Niger State were paying N550 compared with about N800, while Abia had deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
He commended state governments that had already embraced the initiative but urged others to intensify preparations ahead of October 1.
“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,” he said.
Tinubu Rejects Return to Petrol Subsidy
Tinubu said Nigeria could reduce its vulnerability to fluctuations in global energy prices by taking greater advantage of its abundant natural gas resources.
“Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure,” he said.
“That is what we have been doing.”
The President said his administration had, over the past three years, invested in developing a CNG transportation ecosystem across the country.
He said more than 120,000 vehicles had been converted to CNG, while the country now had more than 400 certified conversion centres and over 90 CNG refuelling stations.
Tinubu also rejected calls for a return to the petrol subsidy regime, arguing that the country should instead accelerate the development of cheaper domestic energy alternatives.
“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,” he said.
“We must accelerate the cheaper alternatives we have been building at home.”
The President said the CNG transition was gathering momentum across the country, noting that Edo had 50 CNG buses in active service, while Kano had converted more than 1,000 commercial vehicles.
He added that Delta, Kwara and Lagos were expanding CNG-supported transport services, while Akwa Ibom had taken delivery of 50 CNG buses ahead of commercial operations.
Tinubu urged all states to work with transport unions and commercial operators to expand conversion and fleet deployment, stressing that the ultimate objective was to ensure that lower energy costs translated into cheaper fares for commuters.
The Federal Government, he said, would continue to support the expansion of CNG infrastructure and conversion capacity while creating an enabling environment for states, transport operators, manufacturers and private investors.
“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings,” Tinubu said.
“Now we must move faster and scale this so more Nigerians feel those savings in the fares they pay every day.”
