President Bola Tinubu and state governors have agreed to work together to reduce transport fares from Oct. 1 by leveraging cheaper Compressed Natural Gas (CNG) and electric vehicles.
Tinubu disclosed this on Thursday during a meeting with the governors at the State House, Abuja, on the sidelines of the National Economic Council (NEC) meeting.
He said the agreement was aimed at ensuring that Nigerians directly benefited from the cost savings associated with the Federal Government’s energy transition programme.
“I am pleased with my discussion with the Governors’ Forum. The Governors have, on their own initiative, resolved to take immediate measures to bring down the cost of transportation in their states.
“We have agreed that cheaper fuel should result in cheaper fares. From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” Tinubu said.
The President said the Federal Government was already investing significantly in CNG conversion centres and refuelling infrastructure nationwide.
He said more than 120,000 vehicles had been converted to CNG nationwide, with over 100,000 additional conversion kits being processed.
Tinubu said the Federal Government, through the Midstream and Downstream Gas Infrastructure Fund, was financing more than 100 gas projects across the country.
According to him, the projects include 15 CNG mother stations and 86 daughter stations, with four projects already commissioned in Lagos, Abuja and Owerri.
He said the federal government had directed the rollout of another 500 CNG refuelling stations, in addition to the 500 previously ordered, bringing the planned total to 1,000 stations nationwide.
“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol.
“Intra-state transport is where Nigerians feel the cost most directly, and it is where the states hold the levers. I am encouraged that our governors are moving to bring these benefits closer to the people they serve,” he said.
Tinubu said a joint Federal and State committee would be established to begin implementing measures agreed at the meeting.
He also urged state governments to intensify efforts to reduce poverty and improve living conditions, stressing the need for more deliberate collaboration between the federal government and subnational governments.
The President highlighted the Presidential CNG Initiative as one of his administration’s measures aimed at reducing transportation costs and easing economic pressure on Nigerians.
He also urged governors to encourage farmers in their states to leverage the federal government’s agricultural mechanization program, supported by six maintenance centres across the country.
The meeting also featured political discussions, with the governors pledging support for Tinubu’s bid to secure another term in office in the 2027 general elections.
