President Bola Tinubu has directed the immediate rollout of an additional 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria, as the Federal Government intensifies efforts to cushion the impact of petrol subsidy removal on transportation costs.
The President issued the directive on Thursday following a meeting with state governors, who he said had agreed to take urgent measures to reduce transport fares in their states by leveraging cheaper energy sources, including CNG and electric vehicles.
In a statement posted on his X handle, Tinubu revealed that the new order would bring the government’s total 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.
The President emphasised that the immediate objective was to ensure Nigerians begin to benefit directly from the lower operating costs associated with CNG-powered vehicles, which he noted spend between 60 and 80 per cent less on fuel than petrol-powered alternatives.
Joint Committee to Tackle Transport Costs
Tinubu disclosed that the Federal Government and state governors had agreed to establish a joint committee to begin implementing measures aimed at reducing transport costs, with a target date of 1 October for Nigerians to start experiencing tangible savings.
“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!” the President declared.
He noted that intra-state transportation was where Nigerians felt the impact of high transport costs most acutely, adding that state governments were therefore central to delivering relief to commuters.
“I am encouraged that our Governors are moving to bring these benefits closer to the people they serve,” Tinubu said.
120,000 Vehicles Already Converted
The President disclosed that the Federal Government was already investing significantly in the transition from petrol-powered transportation to CNG and other alternative energy sources.
More than 120,000 vehicles have so far been converted to CNG nationwide, with over 100,000 additional conversion kits currently in the pipeline. The government is also expanding vehicle conversion centres and refuelling infrastructure across the country.
Through the Midstream and Downstream Gas Infrastructure Fund, Tinubu said more than 100 gas projects were being financed nationwide, including 15 CNG mother stations and 86 daughter stations. He noted that he had commissioned four of the projects in Lagos, Abuja and Owerri in May, including a 15-station refuelling network in Lagos and a CNG facility in Abuja capable of serving up to 1,000 cars, tricycles, 50 trucks and 50 buses daily.
“Each tier of government must keep doing its part and work together for the benefit of every Nigerian,” the President said.
Subsidy Removal: A Contentious Legacy
The latest expansion is part of the Tinubu administration’s broader response to the economic aftershocks of petrol subsidy removal, which the President announced during his inauguration on 29 May 2023 with the declaration that “fuel subsidy is gone”.
The decision triggered an immediate spike in petrol prices, contributing to higher transportation costs and knock-on effects on food prices and the overall cost of living. In response, the administration launched the Presidential CNG Initiative as a central pillar of its strategy to provide cheaper alternatives to petrol and cushion the reform’s impact.
The economic consequences of the subsidy removal have since become a major political flashpoint ahead of the 2027 general election.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently disclosed that the subsidy reform generated an estimated ₦15.8 trillion in resources for the federation between June 2023 and December 2025, representing savings shared across the Federal Government, states, local governments and other statutory recipients.
However, former Vice-President and African Democratic Congress presidential candidate Atiku Abubakar has pledged to restore a targeted petrol subsidy if elected in 2027, maintaining that the removal has worsened hardship for Nigerians and that policy should focus on restoring purchasing power.
“On the question of subsidy, my position has not changed and will not change: I will restore it!” Atiku declared in a recent statement.
The contrasting positions have placed the future of petrol subsidy and the government’s economic reforms at the heart of the emerging 2027 political debate. For the Tinubu administration, however, the aggressive expansion of CNG infrastructure is being positioned as a cornerstone of its long-term strategy to reduce energy and transportation costs for ordinary Nigerians.
