On Friday, the Federal Government of Nigeria announced a plan to boost compressed natural gas infrastructure and cut transportation fares by over 40 per cent. This initiative was formalised during a Friday Memorandum of Understanding signing ceremony in Abuja.
Speaking during the event, Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, emphasised the government’s commitment to affordable transportation amidst rising fuel prices. “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 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. 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,” he added.
According to Oluwagbemi, 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 per cent compared to petrol prices. “The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” he asserted.
