Tinubu, Governors Agree on Lower Transport Fares From October 1

President Bola Ahmed Tinubu has announced plans by the Federal Government and state governors to reduce transportation costs across Nigeria, with a focus on the use of Compressed Natural Gas (CNG) and electric vehicles.
Tinubu disclosed this in a statement on Thursday, August 27, 2026, following his meeting with the Nigeria Governors’ Forum.
According to the President, the governors had on their own initiative resolved to take immediate measures to bring down transportation costs in their respective states by leveraging the lower operating costs of CNG and electric vehicles.
Tinubu said the Federal Government’s ongoing energy transition programme had already resulted in more than 120,000 vehicles being converted to CNG nationwide, while over 100,000 additional conversion kits are being processed.
He added that the government was expanding CNG conversion centres and refuelling infrastructure across the country.
The President said the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide, including 15 CNG mother stations and 86 daughter stations.
Tinubu also disclosed that he had directed the rollout of an additional 500 CNG refuelling stations, in addition to the 500 stations previously ordered by the Fund, bringing the planned total to 1,000 stations nationwide.
He noted that CNG-powered vehicles could spend 60 to 80 per cent less on fuel compared with petrol-powered vehicles.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” the President said.
He stressed that intra-state transportation was where Nigerians felt the cost of transport most directly, adding that state governments had an important role to play in reducing the burden.
Tinubu further announced the establishment of a joint Federal and State committee to begin implementing the agreed measures immediately.
“We have agreed that cheaper fuel should result in cheaper fares!” he said.
The President called on all tiers of government to work together to ensure that the benefits of the energy transition translate into lower transportation costs for Nigerians.