CNG adoption: FG to reduce transport fares by 40%
The Federal Government of Nigeria (FG) has announced plans to reduce transport fares by over 40 per cent through adoption of Compressed Natural Gas (CNG) for commercial vehicles.
Government, including key stakeholders, the National Union of Road Transport Workers (NURTW) from Itakpe, Adavi and Ajaokuta train station units unveiled the initiative during a Memorandum of Understanding (MOU) signing ceremony held in Abuja on Friday to formalise the agreement.
The Presidential Compressed Natural Gas Initiative Programme Director, Michael Oluwagbemi, who emphasised the FG’s commitment to affordable transportation amidst rising fuel costs said: “We’re working hard to bring transportation prices down, especially during these challenging times. Mr. President has introduced a great alternative to the fuel petrol problem – Compressed Natural Gas,” he stated.
Okuwagbemi added that, under the new plan, fares for six eight-passenger ger vehicles would be slashed from N12,000 to N7,000, while fares for four-passenger ger vehicles will drop from N13,000 to N8,000 from Abuja to Ajaokuta train station.
“Specifically, the trip from Itakpe Station to Warri costs N5,000, showcasing the benefits of our infrastructure investments over the past five years. We must continue supporting this progress.
“This represents a significant savings of over 40%. Passengers travelling from Abuja to Ajaokuta Station will greatly benefit from Mr President’s intervention.”
The initiative is designed to encourage the conversion of existing commercial vehicles to CNG, which is sold at a discount of up to 60 per cent compared to petrol prices.
“The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” Oluwagbemi said.
D’GalleryTV gathered that a total of 10 CNG fuel conversion centres have already been established across Abuja, Itakpe, and Ajaokuta, including six NNPC stations and two NIPCO stations.
More stations are in the pipeline, with collaborations with Bovas to introduce additional facilities in Abuja.
The timeline for implementation is ambitious, with inspection of vehicles expected to conclude next week and conversions commencing shortly thereafter.
“With over 100 vehicles applying for conversion, we anticipate a two-to-three-week process,” Oluwagbemi explained.
He assured that transportation fare reductions would be implemented nationally by the end of October, with converted vehicles prominently labelled to indicate reduced fares.
According to him, the initiative did not only aim to alleviate the financial strain on passengers but also seeks to create a sustainable transportation model.
“This is a win-win situation, as transport workers will keep some savings while passing benefits to the Nigerian people. You’re saving the country from bankruptcy by taking on this task,” Oluwagbemi said.
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