The Federal Government of Nigeria has unveiled an ambitious plan to enhance compressed natural gas infrastructure, with the aim of reducing transportation fares by over 40 percent.
According to The PUNCH, this initiative was formalized during a Memorandum of Understanding signing ceremony held in Abuja on Friday, attended by key stakeholders, including representatives from the National Union of Road Transport Workers from the Itakpe, Adavi, and Ajaokuta train station units in Kogi State.
The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, highlighted the government’s dedication to making transportation more affordable amid rising fuel prices.
“We are working hard to bring transportation prices down, especially during these challenging times. Mr. President has introduced a great alternative to the petrol problem—compressed natural gas,” he stated.
Under this new initiative, transportation fares for eight-passenger vehicles are set to decrease from N12,000 to N7,000, while fares for four-passenger vehicles will drop from N13,000 to N8,000 for trips from Abuja to Ajaokuta train station. Oluwagbemi noted, “Specifically, the trip from Itakpe Station to Warri costs N5,000, showcasing the benefits of our infrastructure investments over the past five years.”
“This represents a significant savings of over 40 percent. Passengers traveling from Abuja to Ajaokuta Station will greatly benefit from Mr. President’s intervention,” he added, emphasizing the tangible impact of the initiative on everyday commuters.
The initiative not only aims to alleviate immediate financial burdens but also encourages the conversion of existing commercial vehicles to run on CNG, which can be purchased at a discount of up to 60 percent compared to conventional petrol prices.
“The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” he asserted, underlining the environmental benefits alongside economic savings.
To facilitate this transition, the government has established 10 CNG fuel conversion centers strategically located between Abuja, Itakpe, and Ajaokuta.
This includes six stations operated by the Nigerian National Petroleum Corporation and two by NIPCO. Oluwagbemi hinted at further expansion plans, revealing that partnerships are being formed with Bovas to introduce additional facilities in Abuja.
Moreover, Greenville is preparing to inaugurate 17 new refueling stations across Nigeria by the end of the year.
“We have partnered with Matrix Energy to establish five new stations in Delta and Abuja. NNPC has completed six stations in Abuja, with six more expected in Lagos by October,” Oluwagbemi averred.
He also announced that vehicle inspections are anticipated to conclude next week, with conversion processes set to begin shortly thereafter.
“With over 100 vehicles applying for conversion, we anticipate a two-to-three-week process,” he explained.
Transportation fare reductions are expected to be implemented nationwide by the end of October, with converted vehicles clearly labeled to indicate the new fares.
“The NURTW has committed to ensuring compliance with these new rates. If any operator violates the agreed-upon fare, they will reimburse the full installation cost,” he warned, indicating a strong enforcement mechanism.
Adeyemo Teslim, the Secretary of the NURTW’s Ajaokuta unit, expressed his gratitude for the collaboration, stating, “We believe joining forces will yield multifaceted benefits, which we’re eager to support.”
He emphasized the need for expanded coverage to improve accessibility in various regions and highlighted the importance of the agreement’s enforcement mechanism to ensure adherence to the new fare structure.
This initiative not only marks a significant step toward reducing transportation costs for Nigerians but also aims to create a more sustainable transportation system through the adoption of cleaner energy sources.
