The Federal Government of Nigeria has announced plans to enhance compressed natural gas infrastructure and reduce transportation fares by over 40%.
This initiative was formalized during a Memorandum of Understanding signing ceremony in Abuja, which included key stakeholders such as 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 emphasized the government’s commitment to providing affordable transportation in light of rising fuel prices.
He highlighted that this initiative aims to alleviate the financial burden on commuters while promoting the use of compressed natural gas.
“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.
He added that under the new plan, fares for eight-passenger vehicles would decrease 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.
This aims to make travel more affordable for passengers.
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.”
According to him, the initiative aims to provide immediate financial relief while also promoting the conversion of existing commercial vehicles to CNG.
He noted that CNG is sold at a discount of up to 60% compared to petrol prices, further incentivizing this shift.
“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 centers have been established between Abuja, Itakpe, and Ajaokuta. This includes six stations operated by the Nigerian National Petroleum Corporation and two by NIPCO, making it easier for commercial vehicle owners to convert to CNG.
He hinted that more stations are planned, with partnerships being formed with Bovas to introduce additional facilities in Abuja, further expanding the CNG infrastructure.
