Lagos Pushes for CNG, Electric Buses As Diesel Hits ₦2,100/L

Diesel Hits ₦2,100/L: Why Lagos Is Pushing CNG, Electric Buses

The soaring cost of diesel, which has risen to as much as ₦2,100 per litre in Lagos, is forcing a major shift in the way the state moves millions of residents around the metropolis.

The Lagos State Government has consequently barred the introduction of new diesel-powered buses into the regulated public transport system, turning instead to Compressed Natural Gas (CNG) and electric buses as cheaper alternatives for operators and commuters.

The policy, according to the Lagos Metropolitan Area Transport Authority (LAMATA), is part of a broader plan to ultimately achieve an all-electric regulated public transport fleet.

The development comes at a time when the cost of running diesel buses has become a major burden for transport operators.

LAMATA Managing Director, Mrs. Abimbola Akinajo, said diesel, which was selling for about ₦950 per litre at the beginning of 2026, had climbed to between ₦1,950 and ₦2,100 per litre.
For Lagos residents who depend on public transportation every day, the increase has consequences beyond the transport sector.

It affects how much operators spend on each trip, how frequently buses operate and, ultimately, the pressure on fares.

Why Diesel Is Becoming Too Expensive for Lagos Transport

A commercial bus covering long distances every day consumes significant quantities of fuel. With diesel prices more than doubling within the year, operators face substantially higher daily running costs.

The consequence is often passed down the transport chain—from the operator to the passenger.

When the cost of running buses rises, commuters may face higher fares, longer waiting times as operators reduce trips, or the withdrawal of vehicles from less profitable routes.

For millions of Lagosians who make multiple journeys every day to work, school, markets and businesses, even a relatively small increase in transport fares can translate into a significant monthly expense.

This is particularly important in a city where many workers depend almost entirely on public transportation.

CNG Offers Some Relief
LAMATA said the transition to CNG and electric buses is partly aimed at reducing the impact of high fuel costs on public transportation.

According to Akinajo, regulated public transport fares have not increased, despite the increase in diesel prices, because of the lower operating costs associated with cleaner-energy buses.
The state has already introduced CNG and electric buses into its regulated transport system, while additional CNG buses are being deployed.

LAMATA has said that operators bringing new buses into the regulated system must now choose CNG or electric vehicles, rather than diesel.

The policy does not mean that every diesel bus currently operating in Lagos will suddenly disappear. Existing diesel vehicles will be gradually phased out as they reach the end of their operational life.

What It Means for the Average Lagosian
For the ordinary commuter, the biggest question is whether the transition will actually translate into cheaper and more stable transportation.

If buses running on CNG and electricity cost less to operate, the savings could help operators keep fares under control, particularly when international energy prices or domestic fuel prices rise.

It could also make public transport more predictable for workers whose monthly income is already being stretched by food, rent, school fees and other household expenses.

But the transition will not be without challenges.

Lagos needs adequate CNG refuelling stations, electric charging infrastructure, reliable power supply and enough alternative-energy buses to make the policy effective across the metropolis.
A Bigger Battle Over Transport Costs
The diesel crisis has therefore become more than an issue for transport operators.

It has become a household economic issue.
For a Lagos resident travelling to work six days a week, any increase in daily transportation costs can quickly accumulate into thousands of naira every month.

That is why the state’s decision to stop admitting new diesel buses into the regulated fleet could have a direct impact on household budgets—provided the alternative-energy system is sufficiently expanded and the savings are reflected in affordable fares.
Lagos’ ultimate objective is to move towards an entirely electric regulated public transport system.

Until that happens, CNG is expected to serve as a major bridge between the city’s current dependence on diesel and its cleaner, electric-powered transport future.