The Federal Government of Nigeria has unveiled a plan to cut transportation costs by over 40% through the expansion of compressed natural gas (CNG) infrastructure. The initiative, aimed at addressing high fuel prices, was formalized in Abuja during a Memorandum of Understanding (MoU) ceremony on Friday, attended by key stakeholders, including representatives from the National Union of Road Transport Workers (NURTW).
Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative, emphasized the government’s commitment to making transportation more affordable. “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,” Oluwagbemi said.
As part of the plan, transportation fares for eight-passenger vehicles will drop from N12,000 to N7,000, and for four-passenger vehicles from N13,000 to N8, for trips from Abuja to Ajaokuta train station. The Itakpe-Warri route will also see reduced fares at N5,000. Oluwagbemi described this reduction as a “significant saving of over 40%” and noted the efforts to convert commercial vehicles to CNG.
The government’s initiative encourages vehicle owners to switch to CNG, which offers a 60% discount compared to petrol prices. “The converted vehicles will run cleaner, cheaper, safer, and more reliably,” said Oluwagbemi. To support this transition, 10 CNG fuel conversion centres have been established between Abuja, Itakpe, and Ajaokuta, with more stations planned in partnership with firms like Bovas and Matrix Energy. Greenville is also expected to open 17 additional refuelling stations across Nigeria by the end of the year.
Oluwagbemi further revealed that over 100 vehicles had applied for conversion, with the process expected to take two to three weeks. Fare reductions are slated for nationwide implementation by the end of October, with converted vehicles prominently labelled to reflect the new rates.
The NURTW has committed to ensuring compliance with the revised fare structure. “If any operator violates the agreed-upon fare, they will reimburse the full installation cost,” Oluwagbemi warned.
Adeyemo Teslim, Secretary of the NURTW’s Ajaokuta unit, expressed gratitude for the collaboration, stating, “We believe joining forces will yield multifaceted benefits, which we’re eager to support.” He also highlighted the importance of expanding coverage to enhance access to CNG across various regions.
