Analysis| Tinubu’s CNG Expansion Must Deliver Cheaper Transport, Not Just More Infrastructure

President Bola Tinubu has directed the addition of 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria, taking the federal government’s planned network to 1,000 stations nationwide. The move is being presented as part of a broader effort to reduce the cost of transportation following the removal of the petrol subsidy.

Tinubu announced the decision after meeting with the Nigeria Governors’ Forum, saying state governments had agreed to take immediate steps to reduce transport costs. The federal and state governments are also expected to establish a joint committee to implement measures aimed at bringing down fares.

The central proposition is straightforward: if cheaper fuel lowers the operating costs of transport providers, commuters should ultimately pay less.

Tinubu said the government’s target was for Nigerians to begin benefiting from those savings from 1 October, stating: “From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares. We have agreed that cheaper fuel should result in cheaper fares.”

That promise makes the success of the CNG programme dependent on more than the number of stations constructed or vehicles converted. Its measure of success will be whether lower energy costs translate into meaningful savings for passengers.

Infrastructure Is Expanding

According to Tinubu, more than 120,000 vehicles have been converted to CNG under the Presidential CNG Initiative, with more than 100,000 additional conversion kits being processed.

The government is also expanding conversion centres and refuelling infrastructure to accommodate the growing CNG vehicle fleet. Tinubu said the Midstream and Downstream Gas Infrastructure Fund was financing more than 100 gas projects nationwide, including 15 CNG mother stations and 86 daughter stations.

Four of those projects were commissioned in May in Lagos, Abuja and Owerri. Tinubu cited a 15-station CNG refuelling network in Lagos and an Abuja facility capable of serving up to 1,000 cars and tricycles and 50 trucks and buses each day.

The federal government had previously ordered 500 CNG stations through the Midstream and Downstream Gas Infrastructure Fund. The latest directive doubles the planned network to 1,000 stations.

The scale of the expansion matters because inadequate access to refuelling infrastructure could limit the practical benefits of vehicle conversion. A growing CNG fleet needs sufficient and geographically accessible stations if lower fuel costs are to become a viable alternative to petrol.

The Real Test Is At The Bus Stop

Tinubu said CNG-powered vehicles could spend between 60 and 80 per cent less on fuel than petrol-powered vehicles. If those savings are realised, they provide a potentially significant opportunity to reduce the cost of intra-state transportation.

But the existence of savings for vehicle operators does not automatically mean lower fares for passengers. The president has therefore tied the infrastructure programme to cooperation between federal and state authorities, urging each level of government to play its part.

“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” he said.

The proposed joint committee is consequently important. Its role will need to connect the policy objective — cheaper alternative fuel — with the outcome commuters are being promised: cheaper transport.

The administration’s stated target of lower fares from 1 October provides a clear benchmark against which the programme can be assessed. The question is not simply whether Nigeria adds 500 more stations or converts another 100,000 vehicles. It is whether those investments change what people actually pay to travel.

A Promise That Requires Delivery

The CNG strategy represents a substantial shift towards alternative energy in Nigeria’s transport sector. The figures supplied by the president indicate that the government is already investing in conversion capacity and supporting infrastructure while seeking to expand the network further.

However, infrastructure expansion is a means rather than the final objective. For commuters facing higher transport costs, the value of the programme will ultimately be measured in fares.

That places responsibility on both federal and state governments, as well as the wider transport system, to ensure that the claimed reduction in fuel costs is reflected in the prices passengers are charged.

The government has made the promise. The next test is whether Nigerians see the savings at the point where the policy matters most — when they pay for their journey.