The Nigerian Federal Government has unveiled a plan to build more infrastructure using compressed natural gas and reduce transportation costs by more than 40%.
At a Memorandum of Understanding signing event on Friday in Abuja that included important participants such as officials from the National Union of Road Transport Workers from the Itakpe, Adavi, and Ajaokuta train station units in Kogi State, this effort was formalized.
In spite of growing fuel prices, Michael Oluwagbemi, the Program Director of the Presidential Compressed Natural Gas Initiative, emphasized the government’s commitment to affordable transportation.
“We are doing a lot of effort to lower the cost of transportation, particularly in these bad times. “Mr. President, compressed natural gas is a great solution to the gasoline problem,” he said.
He said that the new strategy would lower the cost of transportation from Abuja to the Ajaokuta train station for eight passenger vehicles (from N12,000 to N7,000) and for four passenger vehicles (from N13,000 to N8,000).
The cost of the ride from Itakpe Station to Warri is N5,000, as Oluwagbemi pointed out, “showcasing the benefits of our infrastructure investments over the past five years.”
This translates to a significant 40%+% discount. He went on, “Mr. President’s participation will be extremely beneficial to people traveling from Abuja to Ajaokuta Station.
In addition to offering quick financial assistance, Oluwagbemi claims that the program promotes the conversion of current commercial vehicles to CNG, which is offered at a price reduction of up to 60% when compared to gasoline.
“The modified cars will continue to be flexible, run cleaner, safer, and more reliably, and operate at a significant discount,” he claimed.
He went on to say that ten CNG fuel conversion stations, including two run by NIPCO and six by the Nigerian National Petroleum Corporation, had already been erected between Abuja, Itakpe, and Ajaokuta to help with the transition.
Nigerian National Road Transport Workers (NURTW) has announced plans for more stations and partnerships with Bovas to introduce facilities in Abuja. Greenville is set to inaugurate 17 additional refueling stations across Nigeria by year-end. NNPC has completed six stations in Abuja, with six more expected in Lagos by October. Vehicle inspections are expected to conclude next week, and conversions are set to commence shortly thereafter. Transportation fare reductions are expected to be implemented nationally by the end of October, with converted vehicles prominently labeled to indicate reduced fares. The NURTW has committed to ensuring compliance with these new rates, and operators will reimburse the full installation cost if they violate the agreed-upon fare. The Secretary of the NURTW’s Ajaokuta unit, Adeyemo Teslim, expressed gratitude for the collaboration and emphasized the need for expanded coverage to enhance accessibility across various regions.
