Tinubu, Govs Set October 1 Target For Cheaper Transport Fares

FG, states establish joint committee to implement measures

President Bola Ahmed Tinubu and state governors have agreed to work towards reducing transportation fares nationwide from October 1, 2026, by leveraging the lower operating costs of compressed natural gas and electric vehicles.

Tinubu disclosed this on Thursday after his discussion with the Governors’ Forum, saying the governors had on their own initiative resolved to take immediate measures to bring down the cost of transportation in their respective states.

According to the President, the initiative will focus strongly on using the cost benefits of CNG and electric vehicles to reduce the burden of transportation on Nigerians.

“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,” Tinubu said.

The President said the Federal Government was already making significant investments in the energy transition through the Presidential CNG Initiative.

He said more than 120,000 vehicles had been converted to CNG nationwide, while more than 100,000 additional conversion kits were in the works.

Tinubu added that the government was also expanding conversion centres and refuelling infrastructure across the country.

He said the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects nationwide.

The projects, according to him, include 15 CNG mother stations and 86 daughter stations.

The President recalled that he commissioned four of the projects in Lagos, Abuja and Owerri in May, including a 15-station refuelling network in Lagos.

He also cited an Abuja facility capable of serving 1,000 cars and tricycles and 50 trucks and buses daily.

Tinubu further disclosed that he had directed the rollout of an additional 500 CNG refuelling stations nationwide.

The new stations are in addition to the 500 stations earlier ordered by the Fund, bringing the total planned rollout to 1,000 CNG refuelling stations across the country.

The President said intra-state transportation was the area where Nigerians felt the cost most directly, stressing that state governments controlled the key levers in that area.

“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers,” he said.

Tinubu said he was encouraged by the decision of the governors to move the benefits of the energy transition closer to Nigerians.

He disclosed that the Federal Government and state governments had agreed to establish a joint committee to begin implementing measures aimed at reducing transport costs immediately.

The President said vehicles powered by CNG spend between 60 and 80 per cent less on fuel than petrol-powered vehicles.

He said the government’s target was for Nigerians to begin benefiting from those savings through lower transport fares from October 1.

“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares.

“We have agreed that cheaper fuel should result in cheaper fares!” the President said.

Tinubu urged all tiers of government to continue playing their respective roles and work together to ensure that Nigerians benefit from the reforms.

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

The President signed off his statement with the declaration: “Nigeria First.”

Governors Back CNG Programme To Cut Transport Fares

Earlier, the Nigeria Governors’ Forum (NGF) has backed a proposed National Affordable CNG Transit Programme (NACTP) aimed at reducing transport fares and cushioning the impact of fuel subsidy removal on Nigerians.

The governors said the initiative, which is state-led, would leverage the lower operating cost of Compressed Natural Gas (CNG) to bring down the cost of public transportation across the country.

The position was contained in a communiqué issued at the end of the third meeting of the NGF held on Wednesday.

According to the communiqué, the proposed NACTP would involve state support for CNG vehicle conversions, fleets and other enabling infrastructure, alongside fare commitments from participating transport operators.

The Forum said the initiative had the potential to translate the lower operating cost of CNG into reduced passenger fares.

The governors, however, noted that the financing and implementation framework of the programme required further consideration.

Speaking during a question-and-answer session after the meeting, Bayelsa State Governor, Senator Douye Diri, explained that the initiative was part of efforts to address the impact of rising transportation costs following the removal of fuel subsidies.

He said transportation was central to the prices of several other goods and services, particularly food items.

“Transportation is key,” Diri said, explaining that traders factor the cost of moving goods from one location to another into the prices of commodities.

He said reducing transportation costs through CNG would therefore have a multiplier effect across the economy.

“If you are talking about foodstuffs, increase in the cost of foodstuffs, they will tell you that ‘I’m moving from point A to point B, the transport cost is XY.’ And so for that reason, the cost of my yam, the cost of my garri,” he said.

Diri said that by reducing the cost of transportation, the initiative could help ease the burden on ordinary Nigerians.

“And so by the time you reduce the cost of transport, as I said earlier, it will have a multiplier effect on several other [things],” he added.

He also linked the proposed CNG intervention to the removal of fuel subsidies, saying the expected impact should ultimately be felt by ordinary Nigerians.

“And that’s because there is now the removal of subsidies. And the impact is expected to be on our people, the very common man that we all talk about,” he said.

Asked about the timeline for implementation of the programme, Diri said the details would be worked out between the Forum and those who presented the proposal.

The communiqué said governors had considered the NACTP as a potentially important intervention for reducing transportation costs, while further discussions would determine how the programme would be financed and implemented.

Meanwhile, Diri dismissed suggestions that the Forum should accept blame over alleged inadequate accountability by sub-national governments for funds received following the removal of fuel subsidies.

“That cannot be true. That cannot be true. But we’ll leave that debate for another day,” he said.

The communiqué also disclosed that the governors received a presentation from the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, on opportunities for states to participate in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both scheduled to hold in Lagos.

The Forum said the events would provide opportunities for states to showcase investment-ready projects, promote local exports and tourism, and connect state-based MSMEs with African and global investors and buyers.

The governors assured the minister of their support in achieving the objectives.