Nigeria to Cut Transport Fares with CNG Bus Rollout

President Bola Tinubu revealed that Nigerian state governors have voluntarily committed to lowering transportation costs across the country. He stated that a joint federal-state committee will be established immediately to ensure that the cost savings from Compressed Natural Gas (CNG) are passed on to commuters through reduced fares, effective October 1, 2026.

In a personal statement, President Tinubu expressed satisfaction with discussions held with the Nigeria Governors' Forum. He noted the governors' firm commitment to utilizing the economic advantages of CNG and electric vehicles to decrease transportation expenses within their respective states. "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," he said.

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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.

The Federal Government is substantially investing in this energy transition through the Presidential CNG Initiative. Over 120,000 vehicles have already been converted nationwide, with an additional 100,000 conversion kits in development. The initiative also involves expanding conversion centers and refueling infrastructure. The Midstream and Downstream Gas Infrastructure Fund is financing over 100 gas projects, including numerous CNG stations, with plans to add another 500 CNG refueling stations, bringing the total to 1,000 nationwide.

President Tinubu explained that state governments are partly responsible because intra-state transport costs most directly affect ordinary Nigerians, and states possess significant regulatory influence in this area. He emphasized that governors are moving to bring these benefits directly to the people they serve. The initiative aims to leverage the cost benefits of CNG, with the economics of the transition expected to yield significant savings.

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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.