By Ayomide Otitoju
President Bola Tinubu has directed 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.
Tinubu issued 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 promoting cheaper energy sources, including CNG and electric vehicles.
In a statement posted on his X handle, the President said the additional stations would bring 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.
Tinubu said the immediate objective was to ensure Nigerians benefit from the lower operating costs associated with CNG-powered vehicles.
According to the President, CNG-powered vehicles spend between 60 and 80 per cent less on fuel than petrol-powered vehicles.
He said the Federal Government and state governors had also 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. We have agreed that cheaper fuel should result in cheaper fares!” Tinubu said.
The President identified intra-state transportation as the area where Nigerians experience the impact of high transport costs most directly, stressing that state governments would play a key role in delivering relief to commuters.
Tinubu said more than 120,000 vehicles had been converted to CNG nationwide, while more than 100,000 additional conversion kits were being developed.
He added that the government was expanding vehicle conversion centres and CNG refuelling infrastructure across the country.
Through the Midstream and Downstream Gas Infrastructure Fund, more than 100 gas projects are currently being financed nationwide, including 15 CNG mother stations and 86 daughter stations.
The President said he commissioned four 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 and tricycles and 50 trucks and buses daily.
Tinubu said federal and state governments must continue working together to ensure that the benefits of cheaper energy reach Nigerians.
The latest expansion is part of the administration’s response to the economic impact of petrol subsidy removal.
Tinubu announced the removal of the subsidy during his inauguration on May 29, 2023, declaring that “fuel subsidy is gone”. The policy was followed by a sharp increase in petrol prices and higher transportation costs, with wider effects on food prices and the cost of living.
The administration subsequently launched the Presidential CNG Initiative as a major component of its efforts to provide cheaper alternatives to petrol and cushion the impact of the subsidy reform.
The programme has since expanded from vehicle conversions to the development of refuelling infrastructure and gas projects to support wider adoption of CNG-powered transportation.
The economic impact of subsidy removal has 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 subsidy 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 represented estimated subsidy savings shared among the Federal Government, states, local governments and other statutory recipients.
Meanwhile, former Vice-President and African Democratic Congress presidential candidate Atiku Abubakar has pledged to restore a targeted petrol subsidy if elected president in 2027.
Atiku has argued that subsidy removal has worsened hardship for Nigerians and said government policies should focus on restoring purchasing power.
The contrasting positions have placed the future of petrol subsidies and the government’s economic reforms at the centre of the emerging 2027 political debate.
For the Tinubu administration, however, the expansion of CNG infrastructure remains a key part of its strategy to reduce energy and transportation costs.
