The Federal Government, through the Presidential Compressed Natural Gas Initiative, has reached an agreement with taxi operators at Nnamdi Azikiwe International Airport in Abuja.
This partnership aims to convert 800 petrol-powered vehicles to Compressed Natural Gas, which is expected to reduce shuttle fares by 30%.
The Programme Director and Chief Executive of P-CNGI, Mr. Michael Oluwagbemi, announced the agreement during a signing ceremony on Tuesday.
He emphasized that this initiative is part of the administration’s broader goal to transition one million commercial vehicles to CNG, promoting a more sustainable and cost-effective transportation solution.
Oluwagbemi, represented by the Programme Execution Coordinator, Mr. Folarin Oworo, detailed that the airport taxi operators currently manage a fleet of 800 vehicles. He stated that the 30% fare reduction will be implemented once 50% of the fleet, approximately 400 vehicles, has been converted to CNG.
“The airport taxi operators have about 800 fleet of vehicles and we have agreed that once we hit 50% conversion, which is about 400 vehicles, a 30% discount will be implemented immediately.
“There are various prices based on the distance one is travelling, so the 30% will be applied accordingly based on the current prices for the areas one is going,” he said.
He also mentioned that a rate card outlining prices and discounts will be provided in each vehicle, tailored to the passenger’s destination.
To ensure adherence to the fare reduction, the initiative will include regular monitoring to guarantee compliance and effective implementation.
Oluwagbemi emphasized that the P-CNGI has established partnerships with accredited conversion centers in Abuja to facilitate the transition to CNG, ensuring a smooth and efficient process for the taxi operators.
He noted that when the program launched a year ago, there was only one operational refilling station in Abuja; this number has now increased to seven, with more stations under development. The Nigerian Midstream and Downstream Petroleum Regulatory Authority is actively processing approvals to further expand capacity.
Addressing safety concerns, he explained that explosions typically result from illegal installations using substandard cylinders.
The initiative guarantees the exclusive use of SON-certified, bulletproof cylinders, which are designed to be resistant to damage and explosions, provided they are not tampered with or improperly modified.
To improve efficiency, Oluwagbemi said the program provides 65- and 75-liter cylinders to reduce refilling times.
Plans are also underway to introduce different sizes and shapes to accommodate various vehicles and cargo requirements.
Airport Taxi Operators spokesman, Aliyu Abdulaziz-Aliyu, commended the initiative and expressed gratitude to the federal government for providing the conversion service at no cost.
He voiced optimism that the switch to Compressed Natural Gas would significantly reduce operational costs and lead to lower fares for airport passengers.
