President Bola Tinubu has ordered the rollout of an additional 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria as part of efforts to reduce transportation costs following the removal of the petrol subsidy.
The directive was announced on Thursday after the President met with state governors, who agreed to take immediate steps to reduce transport fares in their respective states by making greater use of cheaper energy sources such as CNG and electric vehicles.
With the latest directive, the Federal Government’s planned CNG refuelling network will increase to 1,000 stations nationwide.
“I have also directed the additional rollout of another 500 CNG refuelling stations nationwide in addition to the 500 stations ordered earlier in the year by the Fund, bringing the programme to 1,000 stations across the country,” Tinubu said.
Government Targets Cheaper Transport
According to the President, the immediate goal is to ensure Nigerians begin to benefit from the lower running costs associated with CNG-powered vehicles.
Tinubu said vehicles powered by CNG can spend between 60 and 80 per cent less on fuel compared with petrol-powered vehicles.
He added that the Federal Government and state governments had agreed to establish a joint committee to implement measures aimed at reducing transportation costs.
“From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares,” the President said.
“We have agreed that cheaper fuel should result in cheaper fares!”
Tinubu said intra-state transportation was where many Nigerians felt the effects of high transport costs most directly, making state governments critical to delivering relief to commuters.
Over 120,000 Vehicles Converted To CNG
The President said the Federal Government was already investing heavily in the transition from petrol-powered vehicles to CNG and other alternative energy sources.
According to him, more than 120,000 vehicles have been converted to CNG across the country, while over 100,000 additional conversion kits are currently being developed.
The government is also expanding conversion centres and refuelling facilities to support the growing number of CNG-powered vehicles.
Through the Midstream and Downstream Gas Infrastructure Fund, more than 100 gas projects are reportedly being financed nationwide, including 15 CNG mother stations and 86 daughter stations.
Tinubu said four of the projects were commissioned in Lagos, Abuja and Owerri in May.
Among them was a 15-station CNG refuelling network in Lagos and a facility in Abuja capable of serving up to 1,000 cars and tricycles and 50 trucks and buses daily.
The President urged the Federal and state governments to continue working together to ensure that Nigerians benefit from cheaper energy.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.
CNG Push Follows Petrol Subsidy Removal
The expansion of the CNG programme is part of the Tinubu administration’s broader response to the economic impact of petrol subsidy removal.
Tinubu announced the end of the petrol subsidy during his inauguration on May 29, 2023, declaring that “fuel subsidy is gone.”
The decision led to a sharp increase in petrol prices and contributed to rising transportation costs, which also affected food prices and the broader cost of living.
In response, the administration launched the Presidential CNG Initiative, aimed at providing Nigerians with cheaper alternatives to petrol while easing the impact of the subsidy reform.
The programme has since expanded beyond vehicle conversions to include the construction of CNG refuelling facilities and other gas infrastructure.
Subsidy Becomes 2027 Campaign Issue
The economic consequences of petrol subsidy removal have also become a major political issue ahead of the 2027 general election.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently said the reform generated an estimated ₦15.8 trillion in subsidy savings for the federation between June 2023 and December 2025.
The Federal Ministry of Finance said the estimated savings were shared among the Federal Government, states, local governments and other statutory recipients.
However, former Vice President and African Democratic Congress presidential candidate Atiku Abubakar has promised to restore a targeted petrol subsidy if elected in 2027.
Atiku has argued that subsidy removal has increased hardship for Nigerians and recently reiterated his position, saying, “I will restore it!”
The contrasting positions have placed the future of petrol subsidy and the government’s economic reforms at the centre of the emerging 2027 political debate.
For the Tinubu administration, the expansion of CNG infrastructure remains a key part of its strategy to reduce fuel expenses and ultimately bring down transportation costs for Nigerians.
