THE Nigerian Federal Government yesterday revealed plans to enhance compressed natural gas (CNG) infrastructure and reduce transportation fares by more than 40%.
This initiative was formalized during the signing of a Memorandum of Understanding in Abuja.
The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, underscored the government’s dedication to making transportation more affordable amid rising fuel prices.
“We are committed to lowering transportation costs, especially in these difficult times. Mr President has provided an excellent alternative to petrol—compressed natural gas,” Oluwagbemi said.
He explained that under the new plan, fares for eight-passenger vehicles would drop from N12,000 to N7,000, while fares for four-passenger vehicles would decrease from N13,000 to N8,000 for trips between Abuja and Ajaokuta train station.
Oluwagbemi highlighted, “For example, the trip from Itakpe Station to Warri costs N5,000, which reflects the benefits of our infrastructure investments over the past five years.”
“This represents over 40% savings, offering significant benefits to passengers traveling from Abuja to Ajaokuta Station through the President’s intervention,” he added.
Oluwagbemi also mentioned that the initiative not only aims to provide immediate financial relief but encourages the conversion of commercial vehicles to CNG, which costs up to 60% less than petrol.
“The converted vehicles will operate more affordably, run cleaner, and provide safer, more reliable transportation,” he said.
Oluwagbemi further stated that the reduced fares would be implemented nationwide by the end of October, with converted vehicles clearly marked to reflect the new rates.
“The NURTW has agreed to enforce these rates, and any operator found overcharging will be required to refund the full installation cost,” he cautioned.
Adeyemo Teslim, Secretary of the NURTW’s Ajaokuta unit, expressed appreciation for the initiative, emphasizing its wide-range benefits and the importance of expanding coverage to improve accessibility.
He added that enforcement measures had been included in the agreement to ensure adherence to the new fare structure.
To facilitate the transition, 10 CNG fuel conversion centers have already been established between Abuja, Itakpe, and Ajaokuta, including six stations operated by the Nigerian National Petroleum Corporation and two by NIPCO.
Oluwagbemi also announced that Greenville would be opening 17 more refueling stations across Nigeria by the end of the year.
“We are partnering with Matrix Energy to launch five new stations in Delta and Abuja. NNPC has completed six stations in Abuja, with six more coming to Lagos by October,” Oluwagbemi said.
He concluded by stating that vehicle inspections would be completed next week, with conversions set to begin shortly thereafter.
Over 100 vehicles have applied for conversion, and the process is expected to take two to three weeks.