State governments across Nigeria are stepping up efforts to reduce transportation costs as the Federal Government targets October 1, 2026, for more commuters to begin benefiting from lower fares through Compressed Natural Gas-powered and alternative-energy transport services.
The push follows an August 27 meeting between President Bola Tinubu and the 36 state governors, where they agreed to pursue measurable reductions in transportation costs. An implementation committee under the Nigeria Governors’ Forum was subsequently established to coordinate the National Affordable CNG Transit Programme.
Different states are adopting different approaches to the programme. While some have already introduced subsidised or free buses, others are working to expand CNG conversion, establish refuelling infrastructure and develop alternative-energy transport systems.
In Kano State, the government said it was ready to work with the Federal Government on CNG-powered mass transit. The state plans to deploy CNG buses for both urban and interstate transportation as part of efforts to reduce fares.
However, transport operators have raised concerns about the cost of converting petrol-powered vehicles to CNG and the limited availability of refuelling facilities. Some operators said cheaper CNG could reduce fares, but noted that maintenance, spare parts, vehicle financing and other operational expenses would also have to be considered.
Ogun State said it was consulting with stakeholders on the implementation of the CNG programme while also exploring electric vehicles. The state government said it was developing a framework aimed at supporting cleaner and more affordable transportation.
In Rivers State, the government is preparing to return its palliative buses to the roads from October. The buses are expected to serve civil servants and other commuters on several routes, with some services provided free of charge. The state, however, has not yet fully implemented the CNG programme.
Several states have already reported reductions in transport fares through government-supported CNG and alternative-energy buses. In Borno, CNG and electric transport services reportedly charge between ₦50 and ₦100 on routes where commercial operators charge between ₦300 and ₦600.
In Kaduna, 100 CNG-powered buses are providing free transportation on major routes. According to the State House, the buses carried about 3.2 million passengers during their first year and saved commuters more than ₦3.5 billion in transport costs.
Oyo has also recorded a reduction on the Lagos-Ibadan route, where the introduction of CNG buses initially brought the fare down from about ₦8,000 to ₦3,200.
In Adamawa, alternative-energy transport services have reduced some fares by as much as 50 per cent, including a reported reduction from ₦8,000 to ₦4,000. In Enugu, the deployment of 100 CNG buses reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500.
Plateau State is also operating government-supported buses that transport about 13,000 commuters daily at ₦200, compared with fares above ₦500 charged by commercial operators.
In Abuja, the Federal Government said passengers using CNG-converted commercial vehicles on several routes were receiving fare reductions of about 40 per cent. For example, the Area 1-Gwagwalada fare was reduced from ₦1,500 to ₦900, while the Nyanya route fell from ₦700 to ₦420 and Wuse from ₦400 to ₦240.
Other states are expanding their programmes. Edo has 50 CNG buses in operation, while Kano has converted more than 1,000 commercial vehicles and is expanding its conversion and refuelling network. Delta, Kwara and Lagos are also expanding CNG-supported transport services, while Akwa Ibom has received 50 CNG buses ahead of commercial operations.
The Federal Government has also said it will continue supporting the expansion of CNG infrastructure and vehicle conversion capacity. Earlier plans called for an additional 500 CNG refuelling stations, taking the targeted nationwide network to 1,000 stations.
The main challenge remains ensuring that lower energy costs translate into actual savings for passengers. Transport operators in some areas are still dealing with long queues at existing CNG stations, limited infrastructure and the financial burden of vehicle conversion.
With October 1 approaching, state governments are therefore under pressure to move beyond announcements and ensure that CNG buses, converted commercial vehicles and other subsidised transport services are available on routes used by large numbers of commuters.
The Federal Government says the objective is for the savings generated by cheaper energy to reach Nigerians through reduced fares, while states are expected to work with transport unions, commercial operators and other stakeholders to expand the programme.