ABUJA — President Bola Ahmed Tinubu and state governors have agreed to take immediate steps to reduce transportation costs across the country by leveraging the cost benefits of Compressed Natural Gas (CNG) and electric vehicles.


Tinubu disclosed this on Thursday, August 27, 2026, following a meeting with members of the Nigeria Governors’ Forum, saying the governors had, on their own initiative, resolved to introduce measures to bring down the cost of transportation in their respective states.

The President said the move was particularly important because intra-state transportation was where Nigerians felt the impact of high transport costs most directly, adding that state governments possessed significant leverage to deliver relief to commuters.


“We have agreed to set up a joint Federal and State committee to begin implementing these measures immediately,” Tinubu said.


He explained that the Federal Government had continued to invest heavily in the country’s transition to alternative energy, particularly through the Presidential CNG Initiative.


According to him, more than 120,000 vehicles have been converted to CNG nationwide, while over 100,000 additional conversion kits are currently in the pipeline.


Tinubu also disclosed that the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, is financing more than 100 gas projects across the country. These include 15 CNG mother stations and 86 daughter stations.


He said four of the projects had been commissioned in Lagos, Abuja and Owerri, including a 15-station CNG refuelling network in Lagos and an Abuja facility capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.

The President further announced plans for the rollout of an additional 500 CNG refuelling stations nationwide, on top of the 500 stations previously ordered by the Fund, bringing the planned network to 1,000 stations across the country.


Tinubu said the economic advantage of CNG should ultimately translate into cheaper transportation for Nigerians, noting that vehicles running on CNG could spend 60 to 80 per cent less on fuel than those powered by petrol.


He said the Federal Government expected state governments to ensure that the savings generated by cheaper fuel were reflected in transportation fares.

“I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” the President said.


The initiative is expected to provide relief to commuters as the Federal and state governments work towards reducing the burden of transportation costs on households and businesses nationwide.