The Nigerian Federal Government has launched an ambitious plan to expand compressed natural gas (CNG) infrastructure and reduce transportation costs by more than 40%. This initiative was formalised through a Memorandum of Understanding (MoU) signed during a ceremony in Abuja on Friday.
At the event, Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative, highlighted the government’s commitment to offering affordable transportation amid rising fuel prices. He praised the initiative as a key solution to Nigeria’s ongoing petrol challenges.
“We are dedicated to reducing transportation costs, especially in these difficult times. Compressed natural gas offers a cleaner, cheaper alternative,” Oluwagbemi said.
Under the new plan, fares for eight-passenger vehicles will drop from N12,000 to N7,000, while four-passenger vehicles will see fares reduced from N13,000 to N8, specifically for routes from Abuja to the Ajaokuta train station. Additionally, trips from Itakpe Station to Warri will cost N5,000, showcasing significant fare reductions across major routes.
“These reductions amount to over 40% in savings for passengers travelling from Abuja to Ajaokuta Station, a direct result of President Tinubu’s intervention,” Oluwagbemi explained.
Beyond immediate cost relief, the programme encourages the conversion of commercial vehicles to CNG, which costs up to 60% less than petrol. “These converted vehicles will not only be more affordable to operate, but they’ll also be cleaner, safer, and more reliable,” he noted.
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Transportation fare reductions are set to roll out nationwide by the end of October, with converted vehicles clearly marked to signal reduced fares. Oluwagbemi also stressed that the National Union of Road Transport Workers (NURTW) will oversee compliance, with operators risking penalties for fare violations.
Adeyemo Teslim, Secretary of NURTW’s Ajaokuta unit, expressed appreciation for the partnership, emphasizing the broader benefits of the CNG initiative. He called for more stations to improve accessibility across regions.
To support the transition, 10 CNG conversion centres have already been established along the Abuja-Itakpe-Ajaokuta corridor, with plans to increase these facilities in collaboration with partners like Bovas and Matrix Energy. The Nigerian National Petroleum Corporation (NNPC) has completed six CNG stations in Abuja, with additional stations expected in Lagos by October.
Oluwagbemi also revealed that vehicle inspections will wrap up soon, with over 100 applications for conversion already in process. “We expect the conversion of vehicles to take about two to three weeks,” he added.
The initiative marks a major step towards reducing transportation costs and promoting cleaner, more sustainable energy solutions across Nigeria.
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