FG's October 1 CNG fare cut plan under pressure as Lagos commuters still pay up to N5,000

Nigeria's plan to reduce intra-state transport fares through Compressed Natural Gas (CNG) and electric vehicles is under pressure, with fares on several busy Lagos routes showing no sign of falling ahead of the October 1 deadline.

Checks show commuters travelling from Sango-Ota to Oshodi are paying between N1,500 and N1,700, while those on the Atan-Ota to Abule-Egba or Agege corridor pay N1,200 to N1,500. The Sango-Abeokuta trip costs about N2,000, and passengers heading from Ojodu Berger to Ibadan pay roughly N2,500, with fares to Oyo reaching N5,000.

Fares unchanged despite CNG buses

Commuter Bolu Adegbite, who travels daily between Toll-Gate and Abule-Egba, said the buses she uses are mostly CNG-powered, yet fares have not budged. Another commuter, Adebayo Ojo, said he paid N500 from Iyana-Ipaja to Oshodi, identical to what petrol-powered buses charge on the same route.

Operators ask for subsidy clarity

The government says the lower cost of running CNG vehicles should bring ticket prices down, but transport operators argue fares cannot fall without direct support. Isiaka Apena, chairman of the National Union of Road Transport Workers' Ikeja branch, said a driver currently charging N1,500 could bring that down to N1,000 if the government covered N500 of operating costs. He urged authorities to clarify whether buses would be provided or whether a portion of operating expenses would be subsidised.

Conversion drive so far

Nigeria has converted about 120,000 vehicles to CNG since 2023 through roughly 400 certified conversion centres, with about 90 refuelling stations now in operation, according to the Presidential Initiative on CNG and Electric Vehicles. The government has also put 655 CNG buses and 5,123 CNG tricycles on the road. Nigeria has licensed 81 companies to retail CNG, up from roughly four previously.

Tosin Coker, chief operating officer of the Presidential Initiative on CNG and Electric Vehicles, said the government's goal is for lower CNG running costs to produce real savings for commuters. He added that delivery would happen at state level, since routes, operators and CNG infrastructure differ across the country. Coker also said the October 1 target should not be read as a single nationwide conversion deadline, and that progress would be measured by actual fare reductions rather than vehicle or station counts.

CNG pricing and infrastructure

CNG is currently priced at N380 per standard cubic metre (SCM) for cars and passenger buses, and N450 per SCM for heavy-duty vehicles and lorries. Investment in filling stations, mobile refuelling units, and gas production facilities still needs to scale up before the policy can reach most Nigerians.

For commuters, the test remains simple: whether what they pay to reach work, school and the market actually falls before the deadline arrives.