Tinubu, APC governors set October 1 target for cheaper transport fares nationwide

Tinubu, APC governors set October 1 target for cheaper transport fares nationwide

President Bola Tinubu and governors elected on the platform of the All Progressives Congress (APC) have agreed to take immediate steps to reduce transportation costs across their respective states, with a target of delivering lower fares to Nigerians from October 1, 2026.

The agreement followed a meeting between President Tinubu and the APC governors, during which the President said the Federal Government and state governments would work together to ensure that savings from cheaper alternative fuels translate into lower transport fares for commuters.

Tinubu disclosed the outcome of the meeting on Thursday night, saying the governors had independently resolved to implement measures aimed at bringing down transportation costs, with particular emphasis on Compressed Natural Gas (CNG) and electric vehicles.

The President said a joint Federal and State committee would be established to begin implementing the measures immediately and coordinate efforts towards achieving the October 1 target.

“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 transportation costs in their states, with a strong focus on leveraging the cost benefits of CNG and electric vehicles,” Tinubu said.

According to the President, the initiative is particularly important because intra-state transportation is where many Nigerians experience the impact of high fuel costs most directly.

He said state governments have a major role to play in ensuring that the savings generated by the adoption of cheaper fuels are passed on to commuters through reduced fares.

“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 said a vehicle operating on CNG could spend between 60 and 80 per cent less on fuel than a petrol-powered vehicle, creating an opportunity for significant reductions in the cost of commercial transportation.

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“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately. A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol,” the President said.

“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!”

The Federal Government has continued to expand its Presidential CNG Initiative, which was introduced as part of efforts to cushion the economic impact of petrol subsidy removal and reduce dependence on petrol-powered transportation.

Tinubu said more than 120,000 vehicles have been converted to CNG nationwide, while more than 100,000 additional conversion kits are currently in the works.

The government is also expanding CNG conversion centres and refuelling infrastructure across the country to make the alternative fuel more accessible to vehicle owners and commercial transport operators.

Through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), the Federal Government is financing more than 100 gas-related projects nationwide. These include 15 CNG mother stations and 86 daughter stations.

Tinubu said four of the projects were commissioned in May in Lagos, Abuja and Owerri, including a 15-station CNG refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles as well as 50 trucks and buses daily.

The President has also directed the rollout of an additional 500 CNG refuelling stations nationwide, on top of the 500 stations earlier ordered by the MDGIF.

When completed, the expansion is expected to bring the total number of CNG refuelling stations under the programme to 1,000 across Nigeria.

The latest development comes amid broader discussions by the Nigeria Governors’ Forum (NGF) on ways to reduce the burden of transportation costs on residents.

The governors have been examining the proposed National Affordable CNG Transit Programme (NACTP), which is aimed at encouraging the conversion of commercial vehicles to CNG and ensuring that lower fuel costs are reflected in passenger fares.

The programme is expected to involve cooperation among the Federal Government, state governments, transport operators and other stakeholders, with states playing a significant role in implementation.

The renewed push for CNG-powered transportation is part of the Federal Government’s wider energy transition programme, which seeks to increase the use of locally available natural gas and alternative energy sources.

The government has argued that expanding CNG use could reduce transportation expenses, strengthen domestic gas utilisation and lessen the impact of fluctuations in petrol prices on households and businesses.

Electric mobility is also being incorporated into the government’s transportation strategy as authorities explore alternatives to petrol and diesel-powered vehicles.

The move is particularly significant for urban commuters, who have faced substantially higher transport fares since the removal of the petrol subsidy.

Rising transportation costs have also affected the prices of food and other essential goods because higher logistics expenses are often passed through the supply chain to consumers.

The Federal Government and state governments will therefore face pressure to ensure that the promised savings from CNG and electric vehicles are reflected in actual fares paid by commuters.

Tinubu stressed that every level of government must contribute to making the energy transition beneficial to Nigerians.

“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” the President added.

With October 1, 2026 set as the target, the proposed joint Federal and State committee will be expected to determine how the CNG and electric vehicle initiatives will be implemented across different states and how fare reductions will be monitored.

For millions of Nigerians who depend on public transportation daily, the success of the initiative will ultimately be measured by whether the lower operating costs of alternative-fuel vehicles translate into cheaper transport fares, rather than simply reducing expenses for transport operators.

The President’s declaration that “cheaper fuel should result in cheaper fares” therefore places the focus on ensuring that the financial benefits of Nigeria’s energy transition reach ordinary commuters.

Tinubu, APC governors set October 1 target for cheaper transport fares nationwide