Introduction

President Bola Tinubu has firmly ruled out a return to fuel subsidies, directing state governments to prioritize compressed natural gas and electric mass transit as the path forward for affordable transportation in Nigeria. The directive aims to deliver measurable fare reductions starting October 1, leveraging domestic gas resources and clean energy alternatives.

What Happened

At a recent meeting with all 36 state governors, Tinubu emphasized that Nigeria cannot control global energy market shifts but can reduce exposure by investing in homegrown alternatives. The National Affordable CNG Transit Programme now includes over 120,000 converted vehicles, more than 400 certified conversion centres, and nearly 90 refuelling stations operating across the country. Governors agreed to a clear objective of cheaper commuter fares by the October deadline, with an implementation committee chaired by Governor AbdulRahman AbdulRazaq overseeing rollout.

Why This Matters

Fuel subsidies have historically consumed trillions of naira and left the economy vulnerable to international oil price swings. By shifting to CNG and electric transit, the administration seeks to stabilize transportation costs for everyday Nigerians. Early results show significant savings: CNG and electric services in states like Borno, Kaduna, Oyo, and Enugu are already charging a fraction of commercial rates, putting more money back in commuters' pockets.

Key Takeaways

  • Over 120,000 vehicles have been converted to CNG, supported by more than 400 certified conversion centres and 90+ refuelling stations nationwide.
  • State-level progress is already visible: Edo operates 50 CNG buses, Kano has converted over 1,000 commercial vehicles, and Lagos, Delta, and Kwara are expanding CNG-supported transport services.
  • Specific fare reductions are already happening: Borno commuters pay N50–N100 on routes where commercial operators charge N300–N600; Kaduna’s 100 CNG buses have carried 3.2 million passengers, saving over N3.5 billion.
  • In Oyo, the Lagos–Ibadan fare dropped from about N8,000 to N3,200 with CNG deployment. Adamawa saw a 50 per cent fare cut, from N8,000 to N4,000.
  • Enugu’s Enugu–Nsukka route fell from N2,500 to N1,500, and Plateau government-supported buses carry about 13,000 commuters daily at N200, compared with over N500 commercially.
  • Through the NURTW partnership, Abuja commuters on CNG-converted routes receive up to a 40 per cent fare reduction, with Area 1 to Gwagwalada dropping from N1,500 to N900.
  • The federal government pledged continued support for CNG infrastructure expansion, conversion capacity, and an enabling environment for states, operators, manufacturers, and private investors.

Conclusion

Tinubu’s directive marks a decisive shift from fuel subsidies to domestic gas and electric mobility as the new framework for affordable transportation. With state governments, transport operators, and the federal government aligned toward the October 1 target, Nigerians can expect tangible fare reductions and a more sustainable transport ecosystem. The success of this approach will depend on sustained infrastructure investment, state-level execution, and continued partnership across the transport sector.