The Federal Government of Nigeria has announced plans to cut transportation fares by over 40% through the expansion of compressed natural gas (CNG) infrastructure.
This initiative, aimed at providing financial relief amid rising fuel costs, was formalized on Friday during the signing of a Memorandum of Understanding in Abuja.
According to Michael Oluwagbemi, the Programme Director of the Presidential Compressed Natural Gas Initiative, the government’s efforts will significantly reduce travel costs for passengers on certain routes. “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.
Under the new plan, fares for eight-passenger vehicles will drop from ₦12,000 to ₦7,000, while fares for four-passenger vehicles will be reduced from ₦13,000 to ₦8, specifically for trips from Abuja to Ajaokuta train station. Similarly, the trip from Itakpe to Warri is set to cost ₦5,000.
Oluwagbemi emphasized that the initiative is not just about reducing fares but also about converting existing commercial vehicles to run on CNG, which is sold at a discount of up to 60% compared to petrol. “The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” he added.
The government is also working closely with transport unions to ensure compliance with the new fare structure. The National Union of Road Transport Workers (NURTW) has committed to supporting the fare reductions. “The NURTW has agreed to ensure that any operator violating the agreed-upon fare will reimburse the full installation cost,” Oluwagbemi warned.
Adeyemo Teslim, Secretary of the NURTW’s Ajaokuta unit, expressed gratitude for the collaboration, noting that the fare reduction will make transportation more accessible. “We believe this partnership will bring about multifaceted benefits, and we are eager to support it,” he stated.
The initiative also includes the establishment of 10 CNG fuel conversion centres between Abuja, Itakpe, and Ajaokuta, with plans to add more stations by year-end. Oluwagbemi disclosed that Greenville is set to launch 17 additional refuelling stations nationwide, while Matrix Energy and the Nigerian National Petroleum Corporation (NNPC) will expand coverage in Delta and Abuja.
Vehicle inspections for the CNG conversion process are expected to conclude soon, with conversions scheduled to commence shortly. Over 100 vehicles have already applied for conversion, with the process expected to take two to three weeks.
