Introduction

President Bola Tinubu has firmly ruled out a return to the fuel subsidy regime, directing states to deliver cheaper transportation options to Nigerians by October. The announcement comes as the administration accelerates a compressed natural gas (CNG) driven transit framework across the country.

What Happened

During a briefing on Saturday, 19 September 2026, Tinubu outlined the progress of the government's CNG transit push, revealing that over 120,000 vehicles have been converted, more than 400 certified conversion centres are operational, and over 90 CNG refuelling stations now serve motorists nationwide. The President met with all 36 state governors on 27 August 2026, tasking them with achieving measurable transport cost reductions by 1 October 2026. An implementation committee under the Nigeria Governors’ Forum, chaired by Governor AbdulRahman AbdulRazaq, is driving the rollout. States including Edo, Kano, Delta, Kwara, Lagos, and Akwa Ibom are already deploying CNG buses and conversion services, with several reporting significant fare drops.

Why This Matters

Ending the prospect of subsidy return signals a permanent shift toward homegrown, lower-cost energy for Nigeria’s transport sector. With global energy markets volatile, Nigeria’s gas-rich position makes CNG a strategic alternative. The President highlighted real-world savings: Borno commuters pay between ₦50 and ₦100 on CNG routes where commercial fares sit at ₦300–₦600, while Kaduna’s 100 CNG buses have carried 3.2 million passengers, saving over ₦3.5 billion in transport costs. Other states, including Oyo, Adamawa, Enugu, and Plateau, report fare reductions of up to 50 per cent. The federal government pledged continued support for infrastructure scaling, conversion capacity expansion, and enabling environment for private operators and investors, emphasizing long-term sustainability.

Key Takeaways

  • Over 120,000 vehicles have been converted to CNG, supported by more than 400 certified conversion centres.
  • More than 90 CNG refuelling stations are operational across Nigeria, with daily usage increasing.
  • State governors have until 1 October 2026 to deliver cheaper transport options, backed by an implementation committee.
  • Commuters in Borno, Kaduna, Oyo, Adamawa, Enugu, and Plateau are already paying significantly less than commercial rates.
  • Through the NURTW partnership, Abuja CNG routes offer up to 40 per cent fare reductions on key corridors.
  • The Federal Government will continue expanding infrastructure, supporting conversion, and facilitating private-sector participation.

Conclusion

Tinubu’s directive marks a decisive step away from fuel subsidy dependency and toward a sustainable, lower-cost transport ecosystem. With state governments, transport operators, and the federal government aligned, the October deadline offers a realistic pathway for Nigerians to feel tangible savings in daily commute costs. The momentum behind CNG and electric bus adoption suggests a lasting shift in Nigeria’s mobility landscape.