Tinubu Targets Lower Transport Fares From October 1 as CNG Programme Expands

Tinubu Targets Lower Transport Fares From October 1 as CNG Programme Expands

President Bola Ahmed Tinubu has directed the 36 state governments to accelerate the National Affordable CNG Transit Programme, with the Federal Government targeting measurable reductions in transportation fares from October 1, 2026.

Tinubu disclosed this in a statement on Saturday, September 19, saying the target followed his August 27 meeting with the governors, where they agreed that more Nigerians should begin to experience lower transportation costs from October.

An implementation committee was subsequently established under the Nigeria Governors’ Forum (NGF) and chaired by Kwara State Governor and NGF Chairman, AbdulRahman AbdulRazaq, to coordinate the rollout.

The committee is working with the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), state governments and other stakeholders to identify priority transport corridors, determine appropriate interventions and put the necessary arrangements in place.

The President said the push had become more urgent because of renewed disruptions to global energy supplies, which are putting pressure on petrol and diesel prices and increasing transportation costs.

According to Tinubu, Nigeria cannot control developments in global energy markets but can reduce its exposure to such shocks by making greater use of its abundant natural gas resources.

He said the Federal Government had spent the past three years developing a CNG transportation ecosystem, with more than 120,000 vehicles converted to CNG, over 400 certified conversion centres and more than 90 CNG refuelling stations currently available across the country.

The Presidential Initiative says more than 7,700 technicians have also been trained as part of the effort to expand vehicle conversion capacity and support the growing CNG network.

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Tinubu said the government would continue expanding CNG infrastructure and conversion capacity while encouraging state governments, transport unions, vehicle manufacturers, commercial operators and private investors to participate in the programme.

The President also cited existing deployments in different parts of the country as evidence of how alternative-energy transportation can reduce commuting costs.

In Borno State, he said CNG-powered and electric public transport services carry commuters for between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.

In Kaduna State, Tinubu said 100 CNG-powered buses provide free transportation on major routes and carried about 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion in transport costs.

In Oyo State, he said the deployment of CNG buses to Pacesetter Transport reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.

The President also cited Adamawa State, where alternative-energy transport services had reduced fares by as much as 50 per cent, from ₦8,000 to ₦4,000.

In Enugu State, the deployment of 100 CNG buses reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500, according to Tinubu.

In Plateau State, government-supported buses reportedly carry about 13,000 commuters daily at ₦200, compared with commercial fares of more than ₦500.

Through a partnership with the National Union of Road Transport Workers (NURTW), the President said passengers using CNG-converted commercial vehicles on several Abuja routes were benefiting from fare reductions of about 40 per cent.

He said the fare on the Area 1-Gwagwalada route had fallen from ₦1,500 to ₦900, while Nyanya dropped from ₦700 to ₦420 and Wuse from ₦400 to ₦240.

On the Suleja-Abuja route in Niger State, Tinubu said passengers were paying about ₦550 compared with approximately ₦800 previously.

In Abia State, he said 40 electric buses had been deployed with fares subsidised by 50 per cent.

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Tinubu said the examples showed that cheaper energy could translate into lower transport costs when the savings were passed on to commuters.

However, the October 1 target is not structured as a single uniform fare applicable to every route across Nigeria.

The Pi-CNG & EV has said implementation will proceed through state-by-state engagement, with individual states expected to identify their busiest transport corridors and determine the infrastructure and interventions required.

At a stakeholder meeting on September 10, several states reported progress on CNG and electric-mobility projects.

Niger State, for instance, had procured 200 CNG buses, with 35 already operational, alongside 11 electric-vehicle charging stations.

Abia State had deployed 40 electric buses and 20 charging stations and planned to increase its fleet to 100 buses by December.

Ogun State had acquired 1,500 electric motorcycles and more than 20 battery-swap stations, while Cross River State had deployed 720 electric vehicles, including buses and motorcycles.

Delta State reported 13 operational vehicle-conversion centres and four CNG stations, with 50 CNG buses expected to join its transport system.

Adamawa State had signed an agreement for 2,000 electric tricycles, while Anambra State had identified six priority transport corridors and was preparing to train 1,000 young people in vehicle conversion.

Benue State had also trained technicians and established a conversion centre.

The states are expected to establish implementation teams covering transport, energy and related sectors and work directly with the Pi-CNG & EV on the rollout.

They have also been asked to identify priority interventions that can realistically be delivered around the October 1 target.

The programme is expected to rely heavily on private-sector participation, with state investment promotion agencies working towards a common framework for attracting investment into CNG and electric-vehicle infrastructure.

Despite the progress reported by the government, implementation has also generated questions from transport stakeholders.

Transport unions previously complained that they had not been adequately consulted and said they were yet to receive clear implementation guidelines for the proposed fare reductions.

The Pi-CNG & EV subsequently clarified that the programme would be implemented progressively and on a state-by-state basis rather than through a blanket nationwide directive.

This means the actual reduction experienced by commuters from October 1 is likely to depend on the availability of CNG buses and converted vehicles, refuelling infrastructure, state subsidies, fleet deployment and agreements with transport operators.

Tinubu has therefore urged governors to work closely with transport unions and commercial operators, support vehicle conversion and fleet deployment, and facilitate the infrastructure required to make the programme effective.

He also directed the states to ensure that savings generated from cheaper energy are reflected in the fares paid by passengers.

The President further rejected calls for a return to the petrol subsidy regime, arguing that the government should instead accelerate the development of alternative energy sources and reduce Nigeria’s exposure to international energy-price movements.

With October 1 approaching, the Federal Government’s focus is now on converting the existing CNG and electric-mobility investments into tangible savings for commuters.

For passengers, the effectiveness of the programme will ultimately be measured by whether the expansion of CNG transportation results in lower fares on the routes they use daily.

Tinubu said the Federal Government would continue to support the expansion of CNG infrastructure, conversion capacity and access while creating an enabling environment for states, transport operators, manufacturers and private investors to participate.

The President said Nigeria had the gas resources and was building the infrastructure needed to expand cheaper transportation options, but urged the states to move faster so that more Nigerians could begin to benefit from lower fares.

Tinubu Targets Lower Transport Fares From October 1 as CNG Programme Expands