Affordable transport fares are set to become a reality for millions of Nigerians from October 1, as President Bola Ahmed Tinubu has directed state governments to accelerate the rollout of compressed natural gas (CNG) and electric mass transit systems.
The President, in an update on the National Affordable CNG Transit Programme, ruled out any return to the petrol subsidy regime. He argued that Nigeria, as a gas-rich nation, must protect itself from global energy market volatility by expanding cheaper domestic alternatives instead of reviving a subsidy system that previously consumed trillions of naira.
Tinubu recalled a meeting with the 36 state governors on August 27, where they agreed that measurable reductions in transportation costs should begin reaching citizens from October 1. The meeting led to the creation of an implementation committee under the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq. The committee is working with the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PiCNG & EV) and other stakeholders to identify priority corridors and interventions.
More than 120,000 vehicles have already been converted to CNG. The country now has over 400 certified conversion centres and more than 90 CNG refuelling stations across the states and the Federal Capital Territory.
The President pointed to existing schemes as proof that cheaper energy can translate into lower fares:
• In Borno State, CNG and electric services charge between ₦50 and ₦100 on routes where commercial operators demand ₦300–₦600.
• In Kaduna, 100 CNG buses offering free rides carried about 3.2 million passengers in their first year, saving commuters more than ₦3.5 billion.
• In Oyo State, CNG buses cut the Lagos–Ibadan fare from about ₦8,000 to ₦3,200.
• Adamawa State recorded fare reductions of up to 50 per cent (from ₦8,000 to ₦4,000).
• In Enugu, 100 CNG buses reduced the Enugu–Nsukka fare from ₦2,500 to ₦1,500.
• Plateau State government-supported buses carry about 13,000 passengers daily at ₦200, compared with commercial fares above ₦500.
• Through a partnership with the National Union of Road Transport Workers in Abuja, CNG-converted vehicles have delivered a 40 per cent fare cut on selected routes (Area 1–Gwagwalada from ₦1,500 to ₦900; Nyanya from ₦700 to ₦420; Wuse from ₦400 to ₦240).
• In Niger State, the Suleja–Abuja fare dropped from about ₦800 to ₦550.
• Abia State has deployed 40 electric buses with 50 per cent subsidised fares.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said. He urged governors to work closely with transport unions, support vehicle conversions and fleet deployment, and ensure that savings from cheaper energy reach citizens through lower fares.
The Presidential CNG Initiative was launched in August 2023 following the removal of petrol subsidy. Its mandate was expanded in March 2026 to include electric vehicles and charging infrastructure. The Federal Government has continued to invest in infrastructure, including the commissioning of four CNG projects in Lagos, Abuja and Owerri earlier this year.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clarified that the Petroleum Industry Act does not empower it to fix pump prices of petroleum products. The Authority stated that prices are determined by free-market conditions under the PIA, and no market failure has been declared that would allow government intervention. It is intensifying border surveillance with other security agencies to curb smuggling and collaborating with the Federal Competition and Consumer Protection Commission to monitor price-gouging and product quality.
Global crude oil prices have risen sharply — from about $72 per barrel in February to over $104, with peaks between $118 and $126 earlier in the year following disruptions in the Middle East. This surge is the main driver behind the current petrol price of around ₦1,800 per litre in Nigeria, up from ₦900 before the escalations.
Tinubu emphasised that while Nigeria cannot control international energy markets, it can reduce its exposure. “Nigeria has the gas. We are building the infrastructure. We are already seeing the savings. Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day,” he said.