The Federal Government of Nigeria has announced plans to reduce transportation fares by more than 40% through the adoption of Compressed Natural Gas for commercial vehicles.
According to The PUNCH, this initiative was disclosed during a Memorandum of Understanding signing ceremony in Abuja on Friday, where key stakeholders, including the National Union of Road Transport Workers from Itakpe, Adavi, and Ajaokuta train station units, formalized their collaboration.
Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative, emphasized the government’s dedication to providing affordable transportation amid rising fuel costs.
“We’re working hard to bring transportation prices down, especially during these challenging times,” Oluwagbemi noted. “Mr. President has introduced a great alternative to the petrol problem – Compressed Natural Gas.”
Under the new plan, fares for eight-passenger vehicles traveling from Abuja to the Ajaokuta train station will drop from N12,000 to N7,000, while fares for four-passenger vehicles will reduce from N13,000 to N8,000.
“This represents a significant saving of over 40%. Passengers travelling from Abuja to Ajaokuta Station will greatly benefit from this intervention,” Oluwagbemi added.
The initiative is expected to encourage the conversion of commercial vehicles to CNG, which is sold at a discount of up to 60% compared to petrol.
Oluwagbemi explained that converted vehicles will be cheaper to operate, more reliable, and better for the environment. “The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.”
To support the initiative, 10 CNG fuel conversion centres have already been established across Abuja, Itakpe, and Ajaokuta, with plans for additional stations in collaboration with Bovas to be rolled out soon.
Vehicle inspections are expected to conclude within the next week, and conversions will begin shortly after.
“With over 100 vehicles applying for conversion, we anticipate a two-to-three-week process,” Oluwagbemi said, adding that the fare reductions will be implemented nationwide by the end of October.
During the event, Adeyemo Teslim, Secretary of the NURTW Ajaokuta unit, expressed his appreciation for the government’s efforts. “We believe joining forces will yield multifaceted benefits, and we are eager to support this initiative,” he said.
Oluwagbemi assured that the new fare structure will be enforced, with transport workers required to comply. “If any operator violates the agreed-upon fare, they will reimburse the full installation cost,” he warned.
