Nigerian commuters are still waiting for widespread reductions in transportation fares despite the Federal Government’s push to expand Compressed Natural Gas (CNG) vehicles and attract more than $2.5bn in private-sector investment into the alternative-energy transport sector.
The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) says it is working with state governors, transport unions and commercial fleet operators to ensure that savings from cheaper fuel are passed on to passengers.
The initiative’s Head of Brand and Communications, Onyekachi Eke, said the government was developing measures to improve compliance, including placing stickers on programme buses showing their designated routes and approved fares.
According to Eke, the stickers would enable commuters to know the appropriate fares before boarding and help prevent operators from charging excessive amounts.
She said fare reductions were already being recorded on selected routes in Abuja and some other states, including Borno, Enugu, Niger and Abia. However, she acknowledged that the benefits had yet to reach every route and commuter.
Eke explained that the more than $2.5bn attracted by the initiative represented private-sector investment, including spending on refuelling infrastructure, vehicle-conversion centres and vehicle assembly. She said the government’s direct expenditure would be reported separately to avoid confusing public spending with private investment.
Tinubu Targets Lower Transport Fares
President Bola Tinubu had earlier announced that the Federal Government and state governors would work towards reducing transportation costs from October 1, 2026, by expanding the use of CNG and electric vehicles.
The President said more than 120,000 vehicles had been converted to CNG, while additional conversion kits were being processed. He also announced plans to expand refuelling infrastructure nationwide.
In an update on September 19, Tinubu said an implementation committee had been established under the Nigeria Governors’ Forum, chaired by Kwara State Governor AbdulRahman AbdulRazaq, to coordinate the programme and identify priority transport routes.
The President cited examples of lower fares in some states, including subsidised services in Borno and reductions on selected routes in Abuja and Enugu. He urged state governments and transport operators to ensure that lower operating costs translated into cheaper journeys for passengers.
Implementation Remains Uneven
However, checks across several states indicate that the programme’s impact remains inconsistent, with some governments still preparing to deploy vehicles or establish the infrastructure needed to support CNG operations.
In Bayelsa, the government earmarked N25bn in its 2026 budget for CNG buses and refuelling stations, but no confirmed CNG-powered buses were operating on major intra-city routes in Yenagoa at the time of the report.
In Imo State, commuters continued to face high fares on routes within Owerri and journeys to other cities. Some transport operators said they had yet to see CNG buses deployed in sufficient numbers to influence prices.
The Imo APC spokesperson, Jones Onwuasoanya, however, maintained that the programme was progressing and said the state had begun receiving CNG vehicles, expressing optimism that fares would fall as deployment increased.
Kaduna State said it was expecting another 120 CNG buses to add to its existing fleet of 100, while other states reported varying levels of progress in acquiring vehicles, training technicians and establishing conversion facilities.
Infrastructure, Key Challenge
In Jigawa State, transport operators said about 100 vehicles had been converted to CNG, but commuters were yet to experience significant fare reductions. The state reportedly had only one CNG refuelling station, located in Dutse.
Benue State was still preparing for vehicle procurement and expanding technical capacity, while Zamfara lacked a CNG station. Bauchi State’s transport corporation also said it had not begun converting its buses.
In Nasarawa, the government was planning to establish conversion centres across its three senatorial zones after training automobile technicians. Taraba State said it was working with the Federal Government to procure CNG and electric buses, with mobile refuelling and electric-charging facilities expected to be installed.
Other states are pursuing alternative approaches. Kano said it had procured 500 electric tricycles, while Abia said it was using electric buses and had previously subsidised fares. Niger State reportedly spent N7bn on 200 CNG buses, while Kogi budgeted N1bn for CNG buses and electric vehicles in its 2026 fiscal plan.
Transport Unions Seek Clarity
The President of the Road Transport Employers’ Association of Nigeria, Musa Mohammed, said he was not aware of the specific deployment arrangements or routes for the new initiative.
His response highlights concerns over coordination with transport unions and operators, who will be central to implementing fare reductions across commercial routes.
Meanwhile, the Federal Government has separately introduced a mass transit scheme for federal civil servants, initially deploying 10 buses to ease commuting costs. The scheme requires registration to help determine passenger demand and suitable routes.
Despite the investment and expansion plans, the central challenge remains ensuring that commuters benefit directly from cheaper energy. Limited vehicle deployment, inadequate refuelling infrastructure and uneven cooperation among states and transport operators continue to slow progress.
The programme’s success will ultimately depend not only on the number of vehicles converted or the investment attracted, but on whether passengers see sustained reductions in the fares they pay.