The Federal Government and state governors have agreed to work together to reduce transport fares nationwide, with October 1, 2026, set as the target date for Nigerians to begin benefiting from lower fares.
The plan will focus on cheaper energy sources, especially Compressed Natural Gas (CNG) and electric vehicles.
President Bola Tinubu announced the development after meeting with state governors in Abuja. He said the Federal Government and governors would work together to ensure that savings from cheaper energy translate into lower transport costs for Nigerians.
Tinubu said the immediate focus would be on intra-state transportation. This is where many Nigerians feel the impact of high transport costs most directly.
The President said CNG-powered vehicles can spend between 60 and 80 per cent less on fuel than petrol-powered vehicles.
He said the savings should reflect in transport fares from October 1.
“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,” Tinubu said.
The Federal Government and state governments have also agreed to establish a joint committee. The committee will work on measures to reduce transport costs and ensure that commuters benefit from lower operating expenses.
As part of the plan, Tinubu has directed the rollout of an additional 500 CNG refuelling stations across Nigeria.
The new stations will bring the planned number of CNG refuelling stations under the Federal Government’s programme to 1,000 nationwide.
The President said more than 120,000 vehicles have already been converted to CNG under the Presidential CNG Initiative.
He added that more than 100,000 additional conversion kits are being processed to support the transition to cheaper energy sources.
The Nigeria Governors’ Forum has also considered the proposed National Affordable CNG Transit Programme (NACTP).
The programme aims to use the lower operating costs of CNG vehicles to reduce transport fares.
Under the proposal, state governments would support vehicle conversions, transport fleets and related infrastructure. Participating transport operators would also commit to lower fares.
The governors said they recognised the programme’s potential to reduce transportation costs. They also agreed to further consider its financing and implementation framework.
The planned reduction comes as Nigerians continue to face high transportation costs.
The Federal Government hopes that wider use of CNG and electric vehicles will reduce operating costs for transport operators.
The success of the plan will depend on how quickly governments expand CNG infrastructure and how effectively operators pass the savings to commuters.
For now, October 1, 2026, remains the target date for Nigerians to begin seeing the expected reduction in transport fares.
