The Federal Government of Nigeria has announced plans to reduce transportation fares by over 40 per cent through the adoption of Compressed Natural Gas for commercial vehicles.
This initiative was unveiled during a Memorandum of Understanding signing ceremony held in Abuja on Friday, where key stakeholders, including the National Union of Road Transport Workers from Itakpe, Adavi and Ajaokuta train station units gathered to formalise the agreement.
The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, emphasised the government’s commitment to affordable transportation amidst rising fuel costs.
“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 stated.
He said under the new plan, fares for six eight-passenger ger vehicles will be slashed from N12,000 to N7,000 while fares for four-passenger ger vehicles will drop from N13,000 to N8,000 from Abuja to Ajaokuta train station.
Oluwagbemi stated, “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.
“This represents a significant savings of over 40%. Passengers travelling from Abuja to Ajaokuta Station will greatly benefit Mr President’s intervention.”
The initiative is designed to encourage 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,” Oluwagbemi added.
A total of ten CNG fuel conversion centres have already been established across Abuja, Itakpe, and Ajaokuta, including six NNPC stations and two NIPCO stations.
More stations are in the pipeline, with collaborations with Bovas to introduce additional facilities in Abuja.
The timeline for implementation is ambitious, with inspections of vehicles expected to conclude next week and conversions commencing shortly thereafter.
“With over 100 vehicles applying for conversion, we anticipate a two-to-three-week process,” Oluwagbemi explained.
He assured that transportation fare reductions be implemented nationally by the end of October, with converted vehicles prominently labelled to indicate reduced fares.
This initiative not only aims to ease the financial strain on passengers but also seeks to create a sustainable transportation model.
“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,” Oluwagbemi stated.
During the event, the Secretary of the NURTW’s Ajaokuta unit, Adeyemo Teslim, expressed gratitude for the collaboration.
“We believe joining forces will yield multifaceted benefits, which we’re eager to support,” he said, highlighting the need for expanded coverage to enhance accessibility across various regions.
“The agreement also includes an enforcement mechanism to ensure compliance with the new fare structure.
“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,” Oluwagbemi stated.
