Tinubu, Governors Agree to Cut Transport Fares Nationwide from October 1

President Bola Ahmed Tinubu and Nigeria’s state governors have agreed to take immediate measures to reduce transportation costs across the country, with the Federal Government targeting October 1, 2026, as the date when Nigerians should begin to benefit from lower fares.

The decision followed a meeting between President Tinubu and the Nigeria Governors’ Forum, during which the governors agreed to leverage the cost advantages of compressed natural gas (CNG) and electric vehicles to reduce intra-state transportation costs.

“Cheaper fuel should result in cheaper fares!” Tinubu said in a statement issued by the State House in Abuja on Thursday.

The President said the Federal Government was intensifying investments in Nigeria’s energy transition through the Presidential CNG Initiative, under which more than 120,000 vehicles have already been converted to CNG across the country.

He disclosed that more than 100,000 additional conversion kits were currently being processed, while the government was expanding conversion centres and CNG refuelling infrastructure nationwide.

According to Tinubu, the Midstream and Downstream Gas Infrastructure Fund is financing more than 100 gas projects, comprising 15 CNG mother stations and 86 daughter stations.

He said four projects were commissioned in May across Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and a facility in Abuja capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.

The President further disclosed that he had directed the establishment of an additional 500 CNG refuelling stations, in addition to the 500 stations previously ordered by the Fund, bringing the planned national network to 1,000 stations.

Federal, State Governments to Establish Joint Committee

Tinubu stressed that intra-state transportation was where Nigerians experienced rising transport costs most directly, noting that state governments exercised considerable influence over the sector.

To ensure effective implementation of the new measures, the Federal and state governments have agreed to establish a joint Federal-State committee, which is expected to commence work immediately.

The committee will focus on developing practical measures to translate lower energy costs into reduced transportation fares for commuters across the country.

Tinubu said CNG-powered vehicles could spend between 60 and 80 per cent less on fuel than petrol-powered vehicles, creating significant opportunities for transport operators to reduce operating costs.

The President said the savings generated from the transition to cheaper and cleaner energy sources should ultimately be reflected in the fares paid by commuters.

He expressed the government’s determination to ensure that Nigerians begin to benefit from the expected savings from October 1, 2026.

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

The announcement comes amid sustained efforts by the Federal Government to reduce the cost of transportation, ease the financial pressure on households and accelerate the adoption of alternative energy sources.

The planned reduction in transport fares is also expected to complement Nigeria’s broader energy transition programme, with the government seeking to expand the use of CNG and electric vehicles while reducing dependence on petrol.

If successfully implemented, the initiative could provide some relief to commuters and transport operators, particularly in urban centres where daily transportation expenses constitute a significant proportion of household expenditure.