Tinubu Rules Out Petrol Subsidy Return, Targets Lower Transport Fares From October 1

By Onifade Samuel

President Bola Ahmed Tinubu has ruled out any return to Nigeria’s former petrol subsidy regime, saying the Federal Government will instead accelerate the use of Compressed Natural Gas (CNG) and electric vehicles as part of efforts to reduce transportation costs across the country.

Tinubu made this known on Saturday, September 19, 2026, while giving an update on the government’s National Affordable CNG Transit Programme. He said the Federal Government and the 36 state governors had agreed to work towards measurable reductions in transportation costs from October 1, 2026.

The announcement comes as high transportation costs continue to put pressure on commuters and households across the country. Rather than restoring the petrol subsidy, the administration is promoting alternative energy sources, particularly CNG, which it says can reduce the cost of operating commercial vehicles.

October 1 target

According to the President, he met with the governors of the 36 states on August 27 to discuss ways of reducing transportation costs through the wider deployment of CNG and electric-powered vehicles.

An implementation committee was subsequently established under the Nigeria Governors’ Forum and is chaired by Kwara State Governor AbdulRahman AbdulRazaq.

The committee is expected to work with state governments, transport unions, commercial operators and other stakeholders to identify major routes where CNG and electric buses can be deployed.

The objective is not simply to increase the number of CNG vehicles on the roads but to ensure that the lower cost of operating those vehicles translates into cheaper fares for passengers.

CNG already linked to lower fares in some states

The Federal Government says some states have already recorded reductions in transportation costs through CNG and electric-powered transport.

In Oyo State, CNG buses operating through Pacesetter Transport reportedly reduced the Lagos-Ibadan fare from about ₦8,000 to ₦3,200 during the initial deployment.

In Enugu State, the government says 100 CNG buses have helped bring the Enugu-Nsukka fare down from ₦2,500 to ₦1,500.

In Adamawa, alternative-energy transport services have reportedly reduced some fares from ₦8,000 to ₦4,000, while government-supported buses in Plateau State reportedly carry about 13,000 passengers daily for ₦200, compared with commercial fares of more than ₦500.

In Borno State, CNG-powered and electric transport services reportedly charge between ₦50 and ₦100 on some routes where commercial operators charge between ₦300 and ₦600.

The government also reported reductions on some routes in Abuja, including a drop in the Area 1-Gwagwalada fare from ₦1,500 to ₦900.

More than 120,000 vehicles converted

The Federal Government says the CNG programme has continued to expand, with more than 120,000 vehicles converted to CNG across the country.

There are also more than 400 certified CNG conversion centres and over 90 CNG refuelling stations, according to the government.

The administration has continued to expand the infrastructure needed to support the programme. It has also directed the rollout of additional CNG refuelling stations as part of efforts to make the fuel more accessible to vehicle owners and commercial transport operators.

The government has maintained that CNG can significantly reduce vehicle operating costs compared with petrol, although the actual savings can vary depending on the vehicle, route, fuel prices and other operating expenses.

Why Tinubu is against returning to petrol subsidy

Tinubu’s position is that returning to the former petrol subsidy system would place another significant financial burden on government.

The subsidy system allowed petrol to be sold below its full market-related cost, with the government covering part of the difference. The Tinubu administration removed the subsidy in 2023, resulting in a sharp increase in petrol prices and subsequent increases in transportation and other living costs.

Rather than reversing that policy, the government is now trying to reduce the cost of transportation through alternative energy.

The administration’s approach is based on using Nigeria’s natural-gas resources to power more vehicles, reducing the amount of petrol and diesel required by commercial transport operators.

CNG and electric vehicles

The government’s transportation strategy is no longer focused solely on CNG.

The Presidential Initiative on Compressed Natural Gas was expanded in 2026 to include electric vehicles, with the programme now covering both CNG and electric transportation.

This means the government is pursuing several measures at the same time, including vehicle conversion, deployment of CNG buses, construction of refuelling facilities and expansion of electric public transportation.

The goal is to create more affordable alternatives for commuters while reducing dependence on petrol and diesel.

Kwara among states involved

Kwara State is among the states identified as expanding CNG-supported transportation.

The state also has a direct role in the nationwide programme because Governor AbdulRahman AbdulRazaq is chairing the committee responsible for coordinating its implementation.

Lagos and Delta are also among the states mentioned as expanding their CNG-supported transport systems.

However, the Federal Government has not announced a single nationwide fare that will apply to every route from October 1. Individual states and transport operators are expected to determine how the reductions will be implemented based on their local transportation systems.

What October 1 really means

The October 1 deadline does not mean petrol prices will automatically fall on that date.

Instead, it is a target for Nigerians to begin seeing lower transportation costs as CNG-powered and electric vehicles become more widely available.

For the plan to succeed, states will need to expand vehicle conversion, provide adequate refuelling infrastructure and work with transport operators to ensure that savings from cheaper energy are reflected in passenger fares.

The key issue will therefore be whether the expansion of CNG and electric transportation can deliver consistent reductions in transport costs for ordinary Nigerians.

For now, the Federal Government's position remains clear: petrol subsidy will not be restored, while CNG and electric-powered transportation are being positioned as alternatives for reducing the cost of movement across the country.