Tinubu targets lower fares from October 1, says CNG saved Kaduna commuters N3.5 billion

President Bola Tinubu announced on September 19, 2026, that Nigerians could expect lower transportation costs from October 1, citing a substantial saving of more than N3.5 billion in Kaduna due to CNG-powered buses in their inaugural year. The President disclosed this update on the National Affordable CNG Transit Programme during a meeting with state governors on August 27.

A subsequent implementation committee, chaired by Kwara State Governor AbdulRahman AbdulRazaq, has been formed under the Nigeria Governors’ Forum to oversee the programme.

Despite recent petrol price hikes, with fuel now retailing between N1,400 and N1,450 per litre across major Nigerian cities, Tinubu's statement aimed to provide an alternative measure to mitigate the impact of escalating fuel and transportation costs. The implementation committee, Pi-CNG & EV, along with state governments and stakeholders, is currently identifying priority transport corridors, exploring suitable interventions, and finalizing necessary arrangements.

Tinubu highlighted several instances of reduced transportation costs linked to CNG and alternative-energy transit, including a fare drop from approximately N8,000 to N3,200 on the Lagos-Ibadan route following the initial deployment of CNG buses in Oyo. In Adamawa, alternative-energy transit services achieved a 50% fare reduction. Other examples include a 40% fare cut on certain Abuja routes using CNG-converted commercial vehicles, as well as lower fares in Niger and Abia through CNG and electric transport initiatives.

In late August, the Federal Government announced plans to expand CNG infrastructure through the Midstream and Downstream Gas Infrastructure Fund, financing over 100 gas projects, comprising 15 CNG mother stations and 86 daughter stations. Additionally, the government plans to install another 500 CNG refuelling stations, bringing the planned nationwide rollout to 1,000 stations.

The CNG initiative was launched in 2023 as a cheaper and cleaner alternative following the removal of the petrol subsidy. However, despite the expansion of the CNG programme, lower fuel costs have yet to translate into significantly reduced transport fares nationwide due to factors such as limited access to refuelling stations and infrastructure gaps.