“Cheaper Fuel Must Mean Cheaper Transport Fares”: Tinubu, Governors Move To Cut Fares Nationwide

President Bola Tinubu and state governors have agreed to work together to reduce transportation costs nationwide by encouraging the use of cheaper energy sources, particularly Compressed Natural Gas (CNG) and electric vehicles (EVs). The move is expected to allow Nigerians to benefit directly from lower fuel costs, with the Federal Government targeting cheaper transport fares from October 1.

“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,” the President wrote in a statement issued on Thursday.

The Federal Government said it has continued to support the transition to alternative energy through the Presidential CNG Initiative. More than 120,000 vehicles have so far been converted to CNG across the country, while over 100,000 additional conversion kits are currently being processed. Authorities are also expanding conversion centres and refuelling infrastructure to make CNG more accessible.

Through the Midstream and Downstream Gas Infrastructure Fund, the government is financing more than 100 gas-related projects nationwide. These include 15 CNG mother stations and 86 daughter stations, aimed at creating a wider network for motorists and commercial transport operators. Tinubu said:

“In May, I commissioned four of these projects in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and an Abuja facility that can serve 1,000 cars and tricycles and 50 trucks and buses a day,” Tinubu noted,

The President also disclosed plans to significantly expand the country’s CNG refuelling network, which is expected to support the growing number of vehicles switching from petrol to gas.

“I have also directed the additional rollout of another 500 CNG refuelling stations nationwide in addition to the 500 stations ordered earlier in the year by the Fund, bringing the programme to 1,000 stations across the country.”

According to Tinubu, the focus is particularly on intra-state transportation, where rising fuel costs have a direct impact on commuters. He said the Federal and state governments have agreed to establish a joint committee to immediately begin implementing measures aimed at passing CNG savings to transport users.

“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately. A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol.”

The President said the ultimate objective is for commuters to start seeing the impact of cheaper fuel in their daily transportation expenses from October.

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

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