Tinubu Forecloses Return to Fuel Subsidy Regime, Asks States to Deliver Cheaper Transport By October 1
*Says 120,000 vehicles converted to CNG in 400 centres nationwide
*Urges more govs to accelerate rollout as seven states, Abuja cut fares
Deji Elumoye in Abuja
President Bola Tinubu yesterday ruled out a return to the petrol subsidy regime but directed state governments across the country to accelerate the deployment of Compressed Natural Gas (CNG) and electric mass transit systems to deliver measurable reductions in transportation fares from October 1.
Giving an update on the National Affordable CNG Transit Programme, Tinubu said more than 120,000 vehicles have been converted to CNG, with over 400 certified conversion centres and more than 90 CNG refuelling stations now operating across the country.
“At a time like this, our answer cannot be to return to the ruinous petrol subsidy regime that consumed trillions of naira and left our economy exposed to every movement in international oil prices, as some have suggested.”
According to him, “Disruptions to global energy supplies are once again pressuring petrol and diesel prices and increasing transportation costs worldwide.
“Nigeria cannot control events in global energy markets. But as a gas-rich nation, we can reduce our exposure. That is what we have been doing.
“Over the last three years, my administration has deliberately invested in building a CNG transportation ecosystem across Nigeria. Today, more than 120,000 vehicles have been converted; we have over 400 certified conversion centres and more than 90 CNG refuelling stations across the country, and these figures are increasing daily,” Tinubu explained.
Tinubu also tasked state governments to work towards delivering cheaper transportation to commuters by October this year.
He disclosed that on August 27, 2026, he met with the governors of all 36 states, during which they agreed on a clear objective to provide cheaper transportation for Nigerians by October.
According to him, “From October 1, more Nigerians should begin to see measurable reductions in transportation costs.
“We subsequently established an implementation committee for the National Affordable CNG Transit Programme under the auspices of the Nigeria Governors’ Forum, chaired by Governor AbdulRahman AbdulRazaq.
“I am aware of the considerable work already underway by the committee, PI-CNG & EV, the States, and other critical stakeholders to identify priority transport corridors, determine appropriate interventions, and put the necessary arrangements in place. This work has become even more urgent amid the current global energy crisis.”
He further emphasised that the country must accelerate the cheaper alternatives being built at home.
“It is reassuring to see the movement spreading. Edo already has 50 CNG buses in active service. Kano has converted more than 1,000 commercial vehicles while rapidly expanding its conversion and refuelling network. Delta, Kwara and Lagos states are expanding CNG-supported transport services, while Akwa Ibom has taken delivery of 50 CNG buses ahead of commercial operations.
“I encourage every State to maintain the momentum towards October 1. Work with transport unions and commercial operators. Support conversion and fleet deployment. Facilitate the infrastructure required. Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” Tinubu added.
He promised that the federal government would continue to support the scaling of CNG infrastructure and access, expand conversion capacity, and create the enabling environment for states, transport operators, manufacturers and private investors to participate.
“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings. Now we must move faster and scale this so that more Nigerians feel those savings in the fares they pay every day,” he said.
The president added that clear evidence from across Nigeria showed what would be possible when cheaper energy translated into cheaper transportation.
Tinubu particularly cited states like Borno, Kaduna, Oyo, Adamawa, Enugu and Plateau, where CNG-powered and electric transport services charge lower rates than commercial operators.
He said: “In Borno, CNG-powered and electric public transport services are moving commuters for between N50 and N100 on routes where commercial operators charge between N300 and N600.
“In Kaduna, 100 CNG-powered buses are providing free transportation on major routes across the State. In their first year of operation, the buses carried about 3.2 million passengers, saving commuters more than N3.5 billion in transport costs.
“In Oyo, CNG buses deployed to Pacesetter Transport brought the Lagos–Ibadan fare down from about N8,000 to N3,200 during the initial deployment.
“In Adamawa, alternative-energy transit services have cut fares by as much as 50 per cent, from ₦8,000 to N4,000.
“In Enugu, where 100 CNG buses have been deployed, the Enugu–Nsukka fare has been reduced from N2,500 to N1,500.
“In Plateau, government-supported buses carry about 13,000 commuters every day at ₦200, compared with more than ₦500 commercially.
“Through our partnership with the NURTW, passengers on CNG-converted commercial vehicles on several Abuja commuter routes receive a 40 per cent fare reduction. Area 1 to Gwagwalada, for example, has fallen from N1,500 to N900; Nyanya from N700 to N420; and Wuse from N400 to N240.
“In Niger, passengers on the Suleja–Abuja service are paying N550 compared with about N800, while Abia has deployed 40 electric buses with fares subsidised by 50 per cent.
“These are not projections. Nigerians are already experiencing these savings.”
The president, while commending the governors and state governments that have moved quickly, stressed that the federal government would continue to expand CNG infrastructure and conversion capacity while creating an enabling environment for states, transport operators, manufacturers and private investors to participate in the emerging alternative-energy transport industry.