By Seun Ibiyemi
President Bola Ahmed Tinubu has disclosed that state governors have agreed to leverage compressed natural gas (CNG) and electric vehicles (EVs) to reduce transportation costs across their states from October 1, 2026.
Tinubu made this known in a statement posted on his official X account on Thursday, following a meeting with members of the Nigeria Governors’ Forum (NGF).
The President said the governors had agreed to take immediate steps to bring down intra-state transportation costs by taking advantage of the lower operating costs associated with CNG and electric vehicles.
“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 stated.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” he added.
According to the President, intra-state transportation is where Nigerians experience the impact of high transport costs most directly, giving state governments a critical role in ensuring that cheaper energy translates into lower fares for commuters.
To support the initiative, the Federal and state governments have agreed to establish a joint committee that will commence implementation of measures aimed at reducing transportation costs.
Tinubu said the Federal Government was already investing heavily in the country’s energy transition through the Presidential CNG Initiative, with more than 120,000 vehicles converted to CNG nationwide and over 100,000 additional conversion kits currently being processed.
He added that the government was expanding CNG conversion centres and refuelling infrastructure to improve access to the alternative fuel.
The President also disclosed that the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects across the country.
The projects include 15 CNG mother stations and 86 daughter stations, with facilities already commissioned in Lagos, Abuja and Owerri in May.
Tinubu said a network of 15 CNG refuelling stations was being developed in Lagos, while a facility in Abuja had the capacity to serve about 1,000 cars and tricycles and 50 trucks and buses daily.
He further directed the rollout of an additional 500 CNG refuelling stations nationwide, alongside the 500 stations previously ordered by the fund, bringing the total planned stations to 1,000.
The Federal Government launched the CNG initiative in 2023 following the removal of petrol subsidy, positioning gas as a cheaper and cleaner alternative to petrol and a means of reducing transportation costs.
The initial programme targeted the deployment of more than 11,500 new CNG-enabled vehicles and 55,000 conversion kits for existing petrol-powered vehicles, while also supporting local vehicle manufacturing, assembly and job creation.
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In August 2023, Tinubu announced plans to deploy CNG buses across states and local governments as part of measures to cushion the impact of subsidy removal.
The Federal Government subsequently allocated N100 billion for the acquisition of 3,000 20-seater CNG-powered buses for mass transit.
Tinubu has repeatedly urged transport operators to pass the savings from cheaper CNG to commuters, stressing that the benefits of the country’s transition to alternative fuels should ultimately be reflected in lower passenger fares.
