President Bola Tinubu has directed the rollout of an additional 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria as part of the Federal Government’s efforts to reduce transportation costs following the removal of the petrol subsidy.
Tinubu gave the directive on Thursday after meeting with state governors, who he said had agreed to take immediate steps to reduce transport fares in their respective states by adopting cheaper energy alternatives, including CNG and electric vehicles.
The latest directive will increase the Federal Government’s planned CNG refuelling network 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,” he said in the statement on his X handle on Thursday night.
CNG Vehicles Could Cut Fuel Costs by Up to 80%
According to the President, vehicles powered by CNG can spend between 60 and 80 per cent less on fuel compared with petrol-powered vehicles.
Tinubu said the Federal Government and state governors had agreed to establish a joint committee that would begin implementing measures designed to bring down transportation costs.
The President said the immediate objective was to ensure that Nigerians benefit directly from the savings generated by the use of cheaper energy.
“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!” Tinubu said.
He identified intra-state transportation as the area where Nigerians feel the impact of high transport costs most severely. Tinubu therefore said state governments would play a crucial role in ensuring that the benefits of cheaper energy reach commuters.
“I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” he said.
Over 120,000 Vehicles Converted to CNG
The President said the Federal Government has already made substantial investments in transitioning Nigeria’s transportation sector from petrol to CNG and other alternative energy sources.
According to Tinubu, more than 120,000 vehicles have been converted to CNG across the country, while conversion kits for more than 100,000 additional vehicles are currently being developed.
The government is also expanding CNG conversion centres and refuelling facilities to support wider adoption of the alternative fuel.
Through the Midstream and Downstream Gas Infrastructure Fund, more than 100 gas projects are currently receiving financing nationwide. These include 15 CNG mother stations and 86 daughter stations.
Tinubu said he commissioned four of the projects 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 as well as 50 trucks and buses every day.
The President stressed the need for continued cooperation between federal and state authorities to ensure Nigerians benefit from lower energy costs.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” Tinubu said.
CNG Expansion Follows Petrol Subsidy Removal
The expansion of CNG infrastructure is a major part of the Tinubu administration’s response to the economic consequences 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 policy led to an immediate increase in petrol prices and contributed to a rise in transportation costs, with further effects on food prices and the broader cost of living.
In response, the administration launched the Presidential CNG Initiative as a major component of its strategy to provide Nigerians with cheaper alternatives to petrol and ease the impact of the subsidy reform.
The initiative has since expanded beyond vehicle conversions to include the construction of CNG refuelling stations and gas infrastructure aimed at supporting large-scale adoption of CNG-powered transportation.
Subsidy Savings Become Part of 2027 Political Debate
The economic consequences of petrol subsidy removal have also emerged as 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 resources for the federation between June 2023 and December 2025.
The Federal Ministry of Finance said the figure represents estimated subsidy savings distributed among the Federal Government, state governments, local governments and other statutory recipients.
However, former Vice-President and African Democratic Congress presidential candidate Atiku Abubakar has promised to reintroduce a targeted petrol subsidy if elected president in 2027.
Atiku has argued that the removal of the subsidy has intensified economic hardship and said government policies should prioritise restoring Nigerians’ purchasing power.
“On the question of subsidy, my position has not changed and will not change: I will restore it!” Atiku said in a recent statement.
The opposing positions have made the future of petrol subsidies and the government’s economic reforms key issues in the emerging 2027 political debate.
For the Tinubu administration, the expansion of CNG infrastructure remains central to its strategy of reducing energy and transportation costs while encouraging Nigerians to move towards cheaper alternative fuels.
