FG to Slash Transportation Fares by 40% with Compressed Natural Gas Initiative
By Matthew Eloyi
In a bid to alleviate rising transportation costs, the Federal Government has announced plans to cut fares by over 40% through the adoption of Compressed Natural Gas (CNG) for commercial vehicles.
This significant move was unveiled during a Memorandum of Understanding (MoU) signing ceremony in Abuja on Friday. Key stakeholders, including representatives from the National Union of Road Transport Workers (NURTW) from Itakpe, Adavi, and Ajaokuta train station units, were present to formalise the agreement.
Michael Oluwagbemi, the Programme Director of the Presidential Compressed Natural Gas Initiative, highlighted the government’s commitment to providing affordable transportation options amid the ongoing fuel crisis.
“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 said.
Under the new initiative, 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 N8,000 for trips between Abuja and Ajaokuta train station.
Oluwagbemi further explained, “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.”
The initiative aims to encourage the conversion of existing commercial vehicles to CNG, which costs up to 60% less than petrol. “The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” Oluwagbemi added.
Already, ten CNG conversion centres have been set up across Abuja, Itakpe, and Ajaokuta, including six NNPC stations and two NIPCO stations. More centres are being planned in collaboration with Bovas to further expand the availability of CNG in the capital city.
The project timeline is ambitious, with vehicle inspections set to conclude next week, followed by conversions over the next two to three weeks. Over 100 vehicles have applied for conversion so far.
Oluwagbemi assured that the fare reductions will be implemented nationwide by the end of October, with converted vehicles easily identifiable to passengers.
“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,” he said.
Adeyemo Teslim, Secretary of the NURTW Ajaokuta unit, expressed gratitude for the initiative, stating, “We believe joining forces will yield multifaceted benefits, which we’re eager to support.”
To ensure compliance with the new fare structure, the agreement includes an enforcement mechanism. Oluwagbemi stressed that any operator violating the agreed fare would be required to reimburse the full installation cost of the CNG conversion.
The initiative promises not only to reduce transportation costs but also to create a more sustainable and affordable transportation system for Nigeria.