President Bola Tinubu has ruled out any return to Nigeria’s former fuel subsidy regime, saying the country must instead accelerate the development of cheaper and locally available energy alternatives, particularly compressed natural gas.
Tinubu made the declaration on Saturday while providing an update on the National Affordable CNG Transit Programme. He said Nigeria had reached a point where reverting to petrol subsidies was no longer an option, stressing that the government’s focus should remain on reducing the country’s exposure to fluctuations in global energy prices.
His words: “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.”
The president noted that renewed disruptions to global energy supplies were affecting petrol and diesel prices and, by extension, transportation costs in several countries.
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 also directed state governments to intensify efforts to provide more affordable transportation for commuters, with October set as the target for Nigerians to begin seeing tangible reductions in transport fares.
He said he met with the governors of the 36 states on August 27, 2026, when they reached an agreement on the need to make cheaper transportation available to 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.”
The president said the government would continue to promote alternatives capable of reducing transportation costs, particularly by taking advantage of Nigeria’s abundant natural gas resources.
He pointed to developments already taking place in several states as evidence that CNG-powered transportation could translate into lower fares for commuters.
“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 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.
“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.
“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.”
Tinubu further said there was already evidence from different parts of the country showing that lower-cost energy could be used to provide more affordable public transportation.
He specifically highlighted initiatives in Borno, Kaduna, Oyo, Adamawa, Enugu and Plateau states, where CNG-powered and electric transport services are reportedly operating at fares below those charged by commercial transport 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 N8,000 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 N200, compared with more than N500 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.”
While commending state governments and governors that have moved quickly to adopt alternative-energy transportation, Tinubu acknowledged that more work remained to be done.
He said the Federal Government would continue to support the states in expanding their CNG and electric transport programmes, with the broader objective of ensuring that lower energy costs translate into reduced fares for commuters across the country.
