FGTargets 40% Fare Reduction with CNG-Powered Vehicles, Expands Fuel Stations Nationwide
In a bid to ease the financial burden on Nigerians, the Federal Government (FG), through its Presidential CNG Initiative (PCNGi), has signed a Memorandum of Understanding (MoU) with three branches of the National Union of Road Transport Workers (NURTW). This initiative aims to cut transport fares by 40% by ensuring cheaper fuel availability across major road corridors in Nigeria.
Michael Oluwagbemi, Program Director and CEO of Pi-CNG, announced the plan to reduce transport costs along the Abuja-Adavi-Ajaokuta-Itakpe route, which spans the Federal Capital Territory (FCT), Kogi, Edo, and Delta states.
The initiative is part of President Bola Ahmed Tinubu’s palliative efforts following the removal of the fuel subsidy. The government has already established new CNG stations for vehicles plying these routes, with the goal of reducing fares from ₦13,000 to as low as ₦7,000 for 6-8 passenger vehicles and ₦8,000 for 4-passenger vehicles.
100 Vehicles to Undergo CNG Conversion
To support the initiative, Oluwagbemi revealed that 100 vehicles at each of the three NURTW branches — Itakpe, Ajaokuta, and Adavi — will be converted to run on compressed natural gas (CNG). This conversion is expected to be completed by the end of October 2024. The NURTW has committed to enforcing compliance and ensuring that transport operators adhere to the new pricing rules.
“If any operator violates these rules, they will face penalties,” Oluwagbemi stated,
reaffirming the union’s role in driving down transportation costs.
Nationwide Expansion of CNG Stations Underway
As part of the initiative, the Federal Government, in collaboration with Greenville and Matrix Energy, is commissioning new CNG fuel stations across the country, including Kwara, Osun, Ekiti, Abuja, Kaduna, and other states. Six new NNPC stations in Abuja are also set to offer fare reductions.
This move aligns with President Tinubu’s “Renewed Hope Agenda,” which aims to improve the infrastructure and lower living costs for Nigerians.
NURTW Praises Initiative, Calls for Nationwide Rollout
Speaking on behalf of the NURTW, Branch Secretary of the Ajaokuta unit, Teslim Adeyemo, commended the government for the initiative and urged for its expansion nationwide.
“We appreciate the Federal Government for this golden opportunity and believe it will significantly reduce transportation costs if fully implemented,” Adeyemo said.
With efforts underway to establish more CNG conversion centers and stations, the PCNGi aims to extend the benefits of this initiative across the country, providing much-needed relief to millions of Nigerians.
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