President Bola Tinubu has ruled out any return to petrol subsidy in Nigeria, directing state governments to accelerate the rollout of compressed natural gas (CNG) and other cheaper transport options ahead of an October 1 deadline.
Tinubu said Nigeria must respond to rising global energy costs by reducing its dependence on petrol and diesel rather than returning to a subsidy regime that, in his assessment, placed a heavy burden on public finances.
The President gave the directive while providing an update on the National Affordable CNG Transit Programme, against the backdrop of renewed pressure on fuel and transportation costs from disruptions in global energy markets.
“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,” Tinubu said.
He argued that while Nigeria could not control developments in international energy markets, its substantial natural gas resources provided an opportunity to reduce exposure to global petrol and diesel price shocks.
“As a gas-rich nation, we can reduce our exposure. That is what we have been doing,” he said.
States given October transport target
Tinubu disclosed that he met the governors of all 36 states on August 27, 2026, and that they agreed on the objective of delivering cheaper transportation to Nigerians from October.
“From October 1, more Nigerians should begin to see measurable reductions in transportation costs,” he said.
An implementation committee for the National Affordable CNG Transit Programme has subsequently been established under the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq.
The committee, PI-CNG and EV, state governments and other stakeholders are working to identify priority transport corridors, determine appropriate interventions and coordinate the deployment of CNG and electric vehicles.
Tinubu said the urgency of the programme had increased because of the latest global energy crisis.
More than 120,000 vehicles converted
According to the President, the Federal Government’s CNG programme has expanded significantly over the past three years.
He said more than 120,000 vehicles had been converted to CNG, supported by more than 400 certified conversion centres and over 90 CNG refuelling stations nationwide.
“These figures are increasing daily,” he said.
Tinubu urged state governments to work with transport unions and commercial operators, support vehicle conversions and fleet deployment, and accelerate the infrastructure needed to expand alternative-energy transportation.
He also stressed that the savings generated from cheaper energy should be reflected in lower passenger fares.
“Above all, ensure that savings from cheaper energy reach Nigerian citizens through lower fares,” he said.
States record lower fares
The President cited several states as evidence that CNG and electric mobility can reduce transportation costs when cheaper energy is translated into lower fares.
In Borno, he said CNG-powered and electric public transport services charge between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna, 100 CNG-powered buses provide free transportation on major routes. Tinubu said the buses carried about 3.2 million passengers during their first year and generated more than ₦3.5 billion in savings for commuters.
In Oyo, the deployment of CNG buses to Pacesetter Transport reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.
Adamawa has recorded fare reductions of up to 50%, with some alternative-energy services cutting fares from ₦8,000 to ₦4,000.
In Enugu, where 100 CNG buses have been deployed, the Enugu-Nsukka fare has fallen from ₦2,500 to ₦1,500, according to the President.
Plateau-supported buses, he said, transport about 13,000 commuters daily at ₦200, compared with more than ₦500 charged by commercial operators.
Abuja fares also cut
The Federal Government’s partnership with the National Union of Road Transport Workers has also produced fare reductions on selected Abuja routes using CNG-converted commercial vehicles.
Tinubu said fares from Area 1 to Gwagwalada had fallen from ₦1,500 to ₦900, while Nyanya fares dropped from ₦700 to ₦420 and Wuse fares from ₦400 to ₦240.
On the Suleja-Abuja route in Niger State, passengers are paying about ₦550, compared with approximately ₦800 previously, he said.
In Abia, 40 electric buses have been deployed, with fares subsidised by 50%.
“These are not projections. Nigerians are already experiencing these savings,” Tinubu said.
CNG rollout becomes key test of subsidy policy
The President’s position effectively places greater pressure on the government’s CNG transition strategy as petrol prices remain a major driver of household and business transportation costs.
Rather than cushioning consumers through a return to petrol subsidies, the administration is seeking to reduce the underlying energy cost of public transportation by shifting vehicles from petrol and diesel to CNG and electricity.
Tinubu commended states that had moved quickly but said the pace of implementation needed to increase.
“It is reassuring to see the movement spreading,” he said, citing CNG and electric transport initiatives in Edo, Kano, Delta, Kwara, Lagos and Akwa Ibom.
Edo has 50 CNG buses in active service, Kano has converted more than 1,000 commercial vehicles, while Delta, Kwara and Lagos are expanding CNG-supported transport services. Akwa Ibom has also taken delivery of 50 CNG buses ahead of commercial operations.
“The Federal Government will 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,” Tinubu said.
“Nigeria has the gas. We are building the infrastructure. We are already seeing the savings.”
The administration’s immediate challenge is to translate those pilot and state-level savings into a broader reduction in transport fares before and after the October 1 target.