President Bola Tinubu has said more Nigerians should begin to see measurable reductions in transportation costs from October 1, citing the more than N3.5 billion in transport costs he said CNG-powered buses saved commuters in Kaduna in their first year of operation.

Tinubu disclosed this on September 19, 2026, in an update on the National Affordable CNG Transit Programme, following his August 27 meeting with the governors of the 36 states.

He said an implementation committee had subsequently been established under the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.

The update comes amid another increase in petrol prices, with checks by Nairametrics showing that filling stations across major Nigerian cities are now selling Premium Motor Spirit (PMS) between N1,400 and N1,450 per litre. In Lagos, most stations were dispensing petrol between N1,400 and N1,430 per litre, while Abuja prices ranged from N1,400 to N1,450 per litre.

What Tinubu is saying

Although Tinubu’s statement did not directly address the recent increase in petrol prices, the update on the National Affordable CNG Transit Programme appears aimed at providing an alternative route to reducing the pressure of rising fuel and transportation costs.

• Tinubu said that after meeting with the 36 state governors on August 27, they agreed on an objective of ensuring that more Nigerians begin to experience measurable reductions in transportation costs from October 1.
• “From October 1, more Nigerians should begin to see measurable reductions in transportation costs.”

He said the implementation committee, Pi-CNG & EV, state governments and other stakeholders are already working to identify priority transport corridors, determine suitable interventions and put the necessary arrangements in place.

• “This work has become even more urgent amid the current global energy crisis.”

The President said the programme would build on existing CNG and electric-vehicle transport initiatives that have already delivered lower fares in some states.

CNG initiatives have delivered savings, Tinubu says

Tinubu cited several examples of lower transportation costs linked to CNG and alternative-energy transit.

• In Kaduna, he said 100 CNG-powered buses provided free transportation on major routes and carried about 3.2 million passengers in their first year, saving commuters more than N3.5 billion.

He also cited a reduction in the Lagos-Ibadan fare from about N8,000 to N3,200 during the initial deployment of CNG buses in Oyo, while alternative-energy transit services in Adamawa reduced fares by as much as 50%.

• In Enugu, Tinubu said the deployment of 100 CNG buses reduced the Enugu-Nsukka fare from N2,500 to N1,500, while government-supported buses in Plateau carry about 13,000 commuters daily at N200 compared with commercial fares above N500.

He also pointed to a 40% fare reduction on some Abuja routes using CNG-converted commercial vehicles, while Niger and Abia have also recorded lower fares through CNG and electric transport initiatives.

Back story

In late August, the Federal Government announced plans to expand CNG infrastructure as part of the National Affordable CNG Transit Programme.

Tinubu said the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects, including 15 CNG mother stations and 86 daughter stations. He also announced plans for another 500 CNG refuelling stations, in addition to the 500 previously ordered by the Fund, bringing the planned nationwide rollout to 1,000 stations.

The Federal Government introduced the CNG initiative in 2023 following the removal of the petrol subsidy, positioning compressed natural gas as a cheaper and cleaner alternative aimed at reducing transportation costs.

What you should know

Despite the expansion of the CNG programme, lower fuel costs have not yet translated into significantly cheaper transport fares across much of the country.

In an exclusive report, Nairametrics found that CNG operators and commuters were counting the cost of the transition, with operators reporting lower fuel expenses while commuters in many areas continued to pay relatively high fares. The report found that other operating costs, limited access to CNG refuelling stations and infrastructure gaps were among the factors preventing fuel savings from consistently reaching passengers.

While the Federal Government also set a target of converting one million commercial transport petrol vehicles to CNG by 2027, Pi-CNG & EV, according to data from its own website, has converted only 120,000 vehicles, despite the initiative attracting more than $2.5 billion in investment.