President Bola Ahmed Tinubu says Nigerians should begin to feel the impact of lower fuel costs through reduced transport fares, as the Federal Government and state governors move to implement measures aimed at cutting transportation costs nationwide.
Tinubu disclosed this in a statement on Thursday, August 27, following discussions with the Governors’ Forum, saying the governors had agreed to take immediate steps to reduce transportation costs in their respective states.
The President said the initiative would focus heavily on the use of compressed natural gas (CNG) and electric vehicles, which he described as key components of the government's ongoing energy transition.
“Cheaper fuel must mean cheaper transport fares,” Tinubu said.
According to the President, more than 120,000 vehicles have already been converted to CNG nationwide through the Presidential CNG Initiative, while more than 100,000 additional conversion kits are currently in the pipeline.
He added that the government is expanding conversion centres and CNG refuelling infrastructure across the country to make the alternative fuel more accessible to motorists and transport operators.
Tinubu also disclosed that the Midstream and Downstream Gas Infrastructure Fund is financing more than 100 gas projects nationwide, comprising 15 CNG mother stations and 86 daughter stations.
The President said four projects had already been commissioned in Lagos, Abuja and Owerri, including a 15-station refuelling network in Lagos and an Abuja facility capable of serving up to 1,000 cars and tricycles, as well as 50 trucks and buses daily.
In a further expansion of the programme, Tinubu said he had directed the rollout of an additional 500 CNG refuelling stations nationwide.
This would bring the total number of stations ordered under the programme to 1,000, following an earlier order for 500 stations by the relevant fund.
The President emphasised that intra-state transportation was where Nigerians experienced the impact of fuel prices most directly, arguing that state governments therefore had an important role to play in ensuring that savings from cheaper fuel translated into lower fares.
He said a joint Federal and State committee would be established to begin implementing the measures immediately.
Tinubu further claimed that vehicles operating on CNG could spend between 60 and 80 per cent less on fuel than comparable petrol-powered vehicles.
Against that backdrop, he said the government's target was for Nigerians to begin benefiting from the savings through lower transportation fares from October 1.
The announcement comes amid continuing public concern over the cost of living and transportation, with commuters across the country facing significantly higher fares following changes in fuel prices.
While the Federal Government has continued to promote CNG as a cheaper alternative to petrol, the effectiveness of the latest initiative will ultimately depend on how quickly conversion infrastructure expands, how many commercial transport operators adopt CNG and whether the savings are actually passed on to passengers.
Tinubu said all tiers of government must work together to ensure that the benefits of the energy transition reach ordinary Nigerians.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” the President said, reaffirming his administration's “Nigeria First” agenda.
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