The Federal Government of Nigeria on Friday announced plans it has formalized with a Memorandum of Understanding signing ceremony in Abuja that will boost compressed natural gas infrastructure and cut transportation fares by over 40 percent.
Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, emphasized that with the initiative, fares for eight-passenger vehicles would be reduced from N12, 000 to N7,000, while that for four-passenger vehicles would drop from N13,000 to N8,000 for trips from Abuja to Ajaokuta train station.
Oluwagbemi assured that transportation fare reductions are expected to be implemented nationally by the end of October, with converted vehicles prominently labelled to indicate reduced fares, especially with the National Union of Road Transport Workers, NURTW, assuring that it is committed to ensuring compliance with these new rates
He added that his government’s commitment to affordable transportation amidst rising fuel prices, saying, “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, which is compressed natural gas.
“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,” he said.
Oluwagbemi also said, “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 percent. Passengers travelling from Abuja to Ajaokuta Station will greatly benefit from Mr. President’s intervention.
“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 percent compared to petrol prices.
“The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.
“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,” he cautioned.
In his response, the Secretary of the NURTW’s Ajaokuta unit, Adeyemo Teslim, expressed gratitude for the collaboration, saying, “We believe joining forces will yield multifaceted benefits, which we are eager to support.”
“There is the need for expanded coverage to enhance accessibility across various regions, as the agreement included an enforcement mechanism to ensure compliance with the new fare structure.
Oluwagbemi again said, “To facilitate the transition, ten CNG fuel conversion centers had already been established between Abuja, Itakpe, and Ajaokuta, including six stations operated by the Nigerian National Petroleum Corporation and two by NIPCO.
“More stations were planned, with partnerships being formed with Bovas to introduce additional facilities in Abuja,” he said.
“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 percent compared to petrol prices.
“The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.
“Meanwhile, Greenville was set to inaugurate 17 additional refueling stations across Nigeria by year-end.
“We have partnered with Matrix Energy to establish five new stations in Delta and Abuja. NNPC has completed six stations in Abuja, with six more expected in Lagos by October,” Oluwagbemi averred.
“Vehicle inspections were expected to conclude next week, and conversions were set to commence shortly thereafter. With over 100 vehicles applying for conversion, we anticipate a two-to-three-week process,” he explained.
