On 27 August 2026, President Bola Tinubu told Nigerians that transport fares nationwide would start falling from 1 October 2026, powered by compressed natural gas (CNG) and electric vehicles. That date has now passed. So what has actually changed, what is still a promise, and what should you do if you own a car, drive a commercial bus or run a fleet? This guide separates the official claims from the numbers on the ground.
What the Federal Government announced
The announcement followed a meeting between the President and the Nigeria Governors’ Forum. The reasoning is simple: according to the Presidency, a CNG vehicle spends roughly 60 to 80 percent less on fuel than a petrol one, so operators’ running costs should fall and fares should follow. In Tinubu’s words, “cheaper fuel should result in cheaper fares.”
The key pieces of the plan, as reported by Nigerian media:
- A joint federal and state committee, working under the Nigeria Governors’ Forum, to pick priority transport corridors and arrange implementation.
- An order for 500 additional CNG refuelling stations on top of 500 already approved this year, for a national target of 1,000.
- More than 100,000 additional conversion kits being prepared, after the Presidential CNG Initiative reported over 120,000 vehicles converted since 2023.
- Financing for more than 100 gas projects, including 15 CNG “mother stations” and 86 “daughter stations.”
- A longer-term federal target of one million converted commercial vehicles by 2027.
Where fares have already dropped
In a series of statements on 19 September, the President cited several state examples. These figures come from the Presidency and have not all been independently verified, but they show what the programme looks like where it is working:
- Abuja: a reported 40 percent cut on several routes in partnership with the NURTW, for example Area 1 to Gwagwalada from ₦1,500 to ₦900, and Nyanya from ₦700 to ₦420.
- Plateau: government-supported buses carrying about 13,000 commuters daily at ₦200 per trip, against market fares above ₦500.
- Enugu: Enugu to Nsukka reportedly down from ₦2,500 to ₦1,500 with 100 CNG buses.
- Oyo: Lagos to Ibadan reportedly down from about ₦8,000 to ₦3,200 during early CNG bus deployment.
- Niger: Suleja to Abuja at ₦550, down from about ₦800.
- Kaduna: 100 CNG buses carried about 3.2 million passengers in a free-ride first year, with the state claiming commuters saved over ₦3.5 billion.
The reality check: fares were still rising
Not everyone is convinced. According to National Bureau of Statistics data cited in Nigerian press, the average intra-city bus fare reached ₦1,431.25 in May 2026, up about 38.6 percent from ₦1,032.46 a year earlier. Analysts also point out that the Presidential CNG Initiative launched in 2023 with a target of 150,000 conversions within a year, and sits at just over 120,000 three years later. Public affairs commentators have said the real test is whether ordinary commuters feel the difference.
The 1 October target is a stated objective rather than a guaranteed timeline with a fixed mechanism. The official statements do not name specific fare reductions for every state, and many savings depend on whether operators actually have access to nearby CNG stations. Long queues at CNG stations remain a complaint.
What CNG conversion costs in Nigeria
Conversion prices move with the exchange rate, so treat these as estimates and confirm with an accredited centre. One 2026 industry guide puts typical figures like this:
- Saloon cars: roughly ₦250,000 to ₦600,000.
- SUVs and minibuses: roughly ₦500,000 to ₦900,000.
- Heavy buses and trucks: roughly ₦1 million to ₦1.7 million.
- Premium European kits: can exceed ₦1.3 million.
Commercial operators belonging to bodies such as the NURTW and taxi associations have been converted free under the federal programme, which is why the CNG conversion cost question matters most for private motorists. Payback estimates in the same guide run from about 6 to 24 months depending on how many kilometres you drive, with drivers commonly reporting 40 to 60 percent lower fuel cost per kilometre. Straight diesel engines are not suited to simple conversion.
Should you convert your car?
For a private car that does short weekend trips, the payback may be long. For anyone driving 100 km or more a day, such as ride-hailing drivers, staff-bus operators and dispatch vans, the maths improves quickly. Before you commit:
- Map your stations. Check how many CNG stations are on your daily route. A cheaper fuel you cannot find is no saving at all.
- Use only accredited centres. Insist on a SON-certified kit installed at a centre accredited under the Presidential initiative, never a roadside installer.
- Keep petrol as backup. Conversions are dual-fuel, so you can switch back when a station is down or queues are long.
- Plan for boot space. A 50 to 65 litre cylinder takes up luggage room.
- Ask about financing. Some schemes and lenders offer instalment options, but terms vary, so read them carefully.
Safety and maintenance
CNG ignites at a higher temperature than petrol, and the main risk is poor installation. Recommended routines include a leak check about every six months or 10,000 km, a gas filter change every 10,000 to 15,000 km, an annual system inspection, and hydrostatic cylinder testing every five years. If you smell gas, switch to petrol and have the system checked at once.
What commuters and operators should expect next
Fare changes will be decided state by state, because intra-state transport sits with governors. Expect the biggest early cuts where governments are subsidising CNG or electric buses directly, as in Plateau, Abuja and Kaduna. Elsewhere, fares set by private operators and unions will move only if CNG access and conversion numbers grow. Keep an eye on your state’s transport ministry and your local union branch for announcements.
Frequently asked questions
Have transport fares actually fallen nationwide since 1 October?
Reductions have been reported in specific states and routes, but the national picture is uneven and the target was a stated goal, not a guaranteed outcome.
How much does CNG conversion cost in Nigeria?
Estimates for 2026 range from about ₦250,000 for a saloon car to over ₦1 million for heavy vehicles, depending on kit and vehicle type. Always get a current quote.
Is CNG conversion free?
Commercial transport operators in participating unions have been converted free under the federal programme. Private motorists generally pay.
Can I switch back to petrol?
Yes. Standard conversions are dual-fuel.
Key takeaway: CNG can cut running costs sharply for high-mileage drivers, but cheaper fares depend on stations, conversions and state-level action, not on the 1 October date alone.
Vehicle prices, conversion costs, import duties and specs change frequently in Nigeria. Always confirm current figures with the dealer, accredited centre or official source before buying or converting. Figures in this article are attributed to statements by the Presidency, the National Bureau of Statistics as reported in the press, and published industry guides.
