The Federal Government of Nigeria has launched a plan to reduce transportation fares by over 40% through the expansion of Compressed Natural Gas (CNG) infrastructure.
The initiative was finalised during a Memorandum of Understanding (MoU) signing ceremony in Abuja on Friday.
During the event, Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative, reiterated the government’s commitment to easing transportation costs amid rising petrol prices, introducing CNG as an affordable alternative to petrol.
Adding that under the new plan, fares for eight-passenger vehicles traveling from Abuja to Ajaokuta will drop from N12,000 to N7,000, while four-passenger vehicle fares will decrease from N13,000 to N8,000.
Additionally, the Itakpe to Warri route will cost N5,000, reflecting a significant reduction.
Oluwagbemi further noted that the initiative encourages the conversion of commercial vehicles to CNG, which offers savings of up to 60% compared to petrol.
To facilitate this transition, 10 CNG conversion centres have been established in Abuja, Itakpe, and Ajaokuta, with additional refuelling stations planned nationwide.
The National Union of Road Transport Workers (NURTW) has committed to enforcing the reduced fare structure, with penalties for non-compliance.
The programme is expected to roll out nationwide by the end of October, with vehicle conversions set to begin in the coming weeks.
