President Bola Tinubu has announced that state governors have agreed to take immediate steps to reduce transportation fares nationwide by leveraging the lower operating costs of Compressed Natural Gas (CNG) and electric vehicles.

Tinubu disclosed this on Thursday after a meeting with the Nigeria Governors’ Forum, saying a joint federal and state committee would be established to implement the measures.

The President said the goal was for Nigerians to begin benefiting from lower transport fares from October 1, 2026.

“I am pleased with my discussion with the Governors’ Forum this afternoon. The governors have, 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,” Tinubu said.

He said more than 120,000 vehicles had been converted to CNG nationwide under the Presidential CNG Initiative, with over 100,000 additional conversion kits in production.

Tinubu also announced plans to expand CNG refuelling infrastructure, saying an additional 500 stations had been ordered, bringing the planned nationwide network to 1,000 stations.

According to the President, a vehicle running on CNG spends between 60 and 80 per cent less on fuel than one powered by petrol.

“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares. We have agreed that cheaper fuel should result in cheaper fares,” he said.

The President explained that intra-state transportation was particularly important because it was where Nigerians felt the impact of high fuel costs most directly and where state governments had significant regulatory influence.

Earlier on Thursday, the Nigeria Governors’ Forum backed a proposed National Affordable CNG Transit Programme aimed at reducing transportation costs and cushioning the impact of petrol subsidy removal.

The governors said the state-led initiative, to be implemented in partnership with the private sector, would support CNG vehicle conversions, fleet acquisition and related infrastructure, while participating transport operators would commit to reducing fares.

NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, signed the communiqué issued after the Forum’s meeting, which was read by Bayelsa State Governor, Douye Diri.

Diri said reducing transportation costs could have a wider impact on the cost of living because transport expenses contribute to the prices of food and other commodities.

“So, by the time you reduce the cost of transport, as I said earlier, it will have a multiplier effect,” he said.

The development follows repeated calls by the Federal Government for transport operators to pass the savings from CNG adoption to commuters.

The Director-General of the National Automotive Design and Development Council, Joseph Osanipin, had disclosed that the number of licensed CNG retail firms in Nigeria had increased from four to 81, although some fleet operators were still reluctant to transfer the lower fuel costs to passengers.

The proposed transport intervention comes amid continued concerns over the rising cost of living following the removal of the petrol subsidy in 2023, which contributed to higher fuel and transportation costs.

The governors said further discussions would determine the specific financing and implementation framework for the National Affordable CNG Transit Programme.