President Bola Tinubu and Nigeria’s state governors have agreed to work together to reduce transportation costs across the country, with October 1, 2026, set as the target date for commuters to begin benefiting from lower fares.
Tinubu announced the development after meeting with the Governors’ Forum at the State House in Abuja, saying cheaper fuel must ultimately translate into cheaper transportation for Nigerians.
The President said the states had agreed to take immediate measures to reduce transportation costs within their respective jurisdictions, particularly by expanding the use of Compressed Natural Gas and electric vehicles.
According to Tinubu, intra-state transportation is where Nigerians experience the impact of high fuel costs most directly, making state governments central to efforts to bring down fares.
The Federal Government and state governments have consequently agreed to establish a joint committee that will begin implementing measures aimed at reducing transportation costs.
Tinubu said the committee would coordinate efforts between both levels of government and ensure that the savings generated from alternative fuels reach ordinary commuters.
The President explained that a vehicle powered by CNG can spend between 60 and 80 per cent less on fuel than a comparable petrol-powered vehicle.
He therefore argued that the substantial reduction in fuel expenditure should be reflected in the amount passengers pay for transportation.
The administration has been promoting CNG as a cheaper alternative to petrol since the removal of fuel subsidy increased transportation costs and placed additional pressure on households.
Under the Presidential CNG Initiative, Tinubu said more than 120,000 vehicles had already been converted to operate on gas nationwide.
He added that more than 100,000 additional conversion kits were in the pipeline as the Federal Government expands the programme.
The government is also working to increase the number of conversion centres and CNG refuelling facilities available to motorists across the country.
Tinubu disclosed that the Midstream and Downstream Gas Infrastructure Fund is currently financing more than 100 gas projects nationwide.
These projects include 15 CNG mother stations and 86 daughter stations designed to strengthen the distribution and availability of compressed natural gas.
The President further revealed that four of the projects were commissioned in May across Lagos, Abuja and Owerri.
One of the commissioned projects includes a 15-station CNG refuelling network in Lagos, while an Abuja facility is capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.
Tinubu also disclosed that he had directed the rollout of another 500 CNG refuelling stations nationwide.
The additional facilities will come on top of the 500 stations earlier ordered by the government, bringing the planned CNG refuelling network to 1,000 stations across Nigeria.
The expansion is expected to make CNG more accessible to transport operators and other motorists who want to take advantage of its lower operating costs.
For passengers, however, the major question is whether the reduction in fuel expenses will translate into noticeable reductions in transport fares.
The President has now made that expectation clear, stating that Nigerians should begin to benefit from the savings through lower fares from October 1.
The proposed reduction comes as households continue to grapple with high transportation expenses, which have contributed significantly to the rising cost of living across the country.
Transport costs also affect the prices of food and other essential commodities because businesses and traders often transfer increased logistics expenses to consumers.
A sustained reduction in transportation costs could therefore provide broader economic relief if operators pass the savings from cheaper fuel to passengers and businesses.
The success of the initiative will depend partly on the willingness of state governments to implement effective measures within their jurisdictions.
It will also depend on the availability of CNG-powered vehicles, reliable refuelling infrastructure and adequate conversion facilities for existing commercial transport vehicles.
The government will equally need to ensure that the savings from cheaper fuel are not absorbed entirely by other operating expenses facing transport operators.
The October 1 target therefore represents an important test of the Federal Government’s broader energy-transition strategy and its ability to convert lower fuel costs into tangible benefits for citizens.
Tinubu urged all levels of government to continue working together to ensure that the benefits of the transition to alternative energy are reflected in the daily lives of Nigerians.
With the joint Federal and State committee expected to begin implementation immediately, attention will now turn to how quickly the agreed measures are translated into practical changes for commuters.
For millions of Nigerians who spend a significant portion of their income on daily transportation, the prospect of lower fares from October 1 could provide much-needed relief.
Whether that relief becomes a reality nationwide, however, will depend on how effectively governments, transport operators and other stakeholders implement the measures before the October deadline.