Nigerian states are stepping up efforts to reduce transportation costs through Compressed Natural Gas as the Federal Government targets measurable fare reductions from October 1, 2026.
The push follows President Bola Tinubu’s August 27 meeting with the 36 state governors, which led to the creation of an implementation committee for the National Affordable CNG Transit Programme under the Nigeria Governors’ Forum.
The programme is designed to ensure that savings from cheaper energy translate into lower transportation costs for commuters across the country.
However, states are adopting different approaches, with some deploying subsidised buses while others are still working through infrastructure, vehicle conversion and operational challenges.
The Federal Government said more than 120,000 vehicles had been converted to CNG, while more than 400 certified conversion centres and over 90 refuelling stations were available across the country.
In Edo State, the government plans to introduce more than 50 CNG buses, with the 52-seater vehicles expected to be distributed according to commuter demand across the three senatorial districts.
The Edo government said the availability of cheaper CNG-powered transport could create competitive pressure on other operators to reduce their fares.
Kano State is also preparing to deploy CNG buses for urban and interstate mass transit as part of its collaboration with the Federal Government.
The state has additionally procured 500 electric tricycles and is developing a Rapid Bus Transit programme aimed at improving public transportation within the metropolitan area.
In Rivers State, the government plans to return previously deployed palliative buses to the roads from October while adding buses that will serve civil servants and other commuters on several routes.
Some of the Rivers buses are expected to provide free transportation, although the state has not fully implemented the CNG programme.
In Bayelsa, commercial transport operators have expressed interest in converting their vehicles to CNG but raised concerns about the cost of conversion and the availability of refuelling stations.
Transport operators said cheaper gas could reduce their fuel expenses, but they argued that fares are also influenced by maintenance, spare parts, vehicle financing, road conditions and government levies.
Jigawa and other states facing infrastructure shortages are similarly confronted with the challenge of providing enough CNG stations and conversion centres for commercial operators.
The situation means that cheaper CNG prices alone may not immediately produce lower fares if operators cannot conveniently access the fuel or afford to convert their vehicles.
The Federal Government has therefore continued to invest in CNG infrastructure, including projects supported by the Midstream and Downstream Gas Infrastructure Fund in Lagos, Abuja and Owerri.
Financing arrangements have also been introduced to help vehicle owners spread the cost of CNG conversion instead of paying the full amount upfront.
There are already examples of lower fares from alternative-energy transport services in several states, although the reductions vary according to the route and type of government intervention.
In Borno, CNG and electric public transport services reportedly charge between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Oyo, CNG buses operating under Pacesetter Transport initially reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200.
Adamawa has recorded fare reductions of up to 50 per cent on some routes, while Enugu reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500 following the deployment of CNG buses.
In Plateau, government-supported buses reportedly carry about 13,000 commuters daily for ₦200 compared with fares above ₦500 charged by private operators.
Abuja has also recorded reductions on routes served by CNG-converted commercial vehicles, with the Presidency reporting a 40 per cent reduction on several routes.
For example, fares from Area 1 to Gwagwalada were reported to have fallen from ₦1,500 to ₦900, while the Nyanya and Wuse routes reportedly dropped from ₦700 to ₦420 and ₦400 to ₦240 respectively.
The Federal Government is now looking to expand such interventions as October 1 approaches, with states expected to work with transport unions, commercial operators and other stakeholders.
The nationwide rollout is taking place against the backdrop of elevated energy and transportation costs, making the availability and affordability of alternative fuels particularly important for commuters.
For transport operators, however, the success of the programme will depend on more than simply converting vehicles from petrol to CNG.
Reliable refuelling infrastructure, affordable conversion, adequate gas supply, vehicle maintenance and sustainable financing will all influence whether lower operating costs can be translated into lasting fare reductions.
The coming weeks will therefore test how effectively states can turn the CNG initiative from individual pilot projects and subsidised services into broader reductions that commuters can experience across more routes.