FG anticipates 40% transport fare reduction with CNG expansion
Ilenre Irele
Federal Government of Nigeria has disclosed a plan to up compressed natural gas infrastructure and reduce transportation fares by over 40 per cent.
The objective was given teeth during a Memorandum of Understanding signing ceremony in Abuja on Friday, which brought together key stakeholders, including representatives from the National Union of Road Transport Workers from Itakpe, Adavi, and Ajaokuta train station units in Kogi State.
The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, emphasised the government’s commitment to affordable transportation amidst 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.
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He added that under the new plan, fares for eight-passenger vehicles would be reduced from N12,000 to N7,000, while fares for four-passenger vehicles would 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 per cent. Passengers travelling from Abuja to Ajaokuta Station will greatly benefit from Mr President’s intervention,” he added.
According to Oluwagbemi, the initiative not only aims to provide immediate financial relief but also encourages 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,” he asserted.
He added that to facilitate the transition, 10 CNG fuel conversion centres had already been established between Abuja, Itakpe, and Ajaokuta, including six stations operated by the Nigerian National Petroleum Corporation and two by NIPCO.
He hinted that more stations were planned, with partnerships being formed with Bovas to introduce additional facilities in Abuja.
