President Bola Ahmed Tinubu has announced plans by the Federal Government and state governors to reduce transportation costs nationwide through increased adoption of Compressed Natural Gas (CNG) and electric vehicles.
President Tinubu disclosed this following discussions with the Governors’ Forum, saying the governors had independently resolved to take immediate steps to lower intra-state transportation costs in their respective states.
According to the President, the initiative will focus on leveraging the cost-saving benefits of CNG and electric vehicles to provide cheaper and more affordable transportation for Nigerians.
The Federal Government, Tinubu said, has already committed significant resources to the country’s energy transition through the Presidential CNG Initiative, under which more than 120,000 vehicles have so far been converted nationwide.
He added that over 100,000 additional CNG conversion kits are currently being processed, while more conversion centres and refuelling infrastructure are being established across the country.
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 noted that four of the projects were commissioned in May across Lagos, Abuja and Owerri, including a 15-station CNG refuelling network in Lagos and a facility in Abuja capable of serving about 1,000 cars and tricycles, as well as 50 trucks and buses daily.
He further disclosed that he had directed the rollout of an additional 500 CNG refuelling stations nationwide, on top of the 500 stations earlier ordered by the Fund, bringing the planned total to 1,000 stations across the country.
Tinubu stressed that intra-state transportation remains the area where Nigerians experience the impact of high transport costs most directly, noting that state governments have a critical role to play in addressing the challenge.
He said the Federal and state governments had agreed to establish a joint committee to immediately begin implementing measures aimed at reducing transportation costs.
The President noted that vehicles powered by CNG can spend between 60 and 80 per cent less on fuel compared with petrol-powered vehicles.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” Tinubu said.
He added: “We have agreed that cheaper fuel should result in cheaper fares.”
The President urged all tiers of government to continue working together to ensure that the benefits of the ongoing energy transition translate into tangible relief for Nigerians.
“Nigeria First.”
Bola Ahmed Tinubu
President of the Federal Republic of Nigeria
The Aso Villa, Abuja
27 August 2026
