President Bola Ahmed Tinubu has announced that from October 1, Nigerians would begin to feel the impact of government savings through lower transport costs.
“We have agreed that cheaper fuel should result in cheaper fares,” Tinubu said. “Each tier of government must keep doing its part and work together for the benefit of every Nigerian.”
The directive followed a meeting with the Nigeria Governors’ Forum in Abuja last Thursday, after which Tinubu, in a statement personally signed and posted on his X handle, said the governors had “on their own initiative resolved to take immediate measures to bring down the cost of transportation in their states, with a strong focus on leveraging the cost benefits of CNG and electric vehicles.”
“I have also directed the additional rollout of another 500 CNG refuelling stations nationwide, in addition to the 500 stations ordered earlier in the year by the Fund, bringing the programme to 1,000 stations across the country,” he added.
The move comes amid rising transportation costs occasioned by the removal of petrol subsidy and the high price of Premium Motor Spirit (PMS), which currently hovers between N1,250 and N1,460 per litre, depending on location.
By contrast, CNG sells for N380 per cubic metre at NIPCO and NNPCL stations, while private outlets such as Shafa and Bova sell at between N500 and N550 per cubic metre. It costs vehicle owners between N600 and N10,000 to fill cylinders, depending on size — ranging from 50kg to 100kg.
“A vehicle running on CNG spends 60 to 80 per cent less on fuel than one running on petrol,” Tinubu said.
Federal Investment in Energy Transition
Tinubu said the Federal Government was already investing significantly in the energy transition ecosystem, with efforts ongoing to expand conversion centres and refuelling infrastructure nationwide.
“The Federal Government is already investing significantly in this energy transition. Through the Presidential CNG Initiative, over 120,000 vehicles have been converted nationwide, with more than 100,000 additional conversion kits in the works. At the same time, we continue to expand conversion centres and refuelling infrastructure nationwide,” he said.
He added that through the Midstream and Downstream Gas Infrastructure Fund, the government is financing more than 100 gas projects nationwide, including 15 CNG mother stations and 86 daughter stations. Four of these projects were inaugurated in May in Lagos, Abuja, and Owerri — including a 15-station refuelling network in Lagos and an Abuja facility capable of serving 1,000 cars and tricycles, and 50 trucks and buses daily.
The President said the expansion was particularly important for intra-state transportation, where Nigerians felt the cost burden most directly.
“I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” he said.
Tinubu said the Federal and state governments had agreed to set up a joint committee to begin implementing measures to reduce transport costs immediately.