FG Targets 40% Transport Fare Cut with CNG Expansion

The Federal Government of Nigeria has unveiled a plan to reduce transportation fares by over 40%. The reduction would be made through the expansion of compressed natural gas (CNG) infrastructure.

The initiative was consolidated at a Memorandum of Understanding signing ceremony in Abuja on Friday.

The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, accentuated the government’s dedication to affordable transport solutions 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.

With regards to the new transport fuel, the cost of fares for eight-passenger vehicles on specific routes, such as Abuja to Ajaokuta train station, would drop from N12,000 to N7,000, while fares for four-passenger vehicles would be reduced from N13,000 to N8,000.

He added: “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.”

The initiative not only offers financial relief but also promotes the conversion of commercial vehicles to 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 asserted.

To ease the transition, 10 CNG fuel conversion centres have already been established along the Abuja-Itakpe-Ajaokuta corridor, with six stations operated by the Nigerian National Petroleum Corporation (NNPC) and two by NIPCO.

Additionally, partnerships with Bovas are set to expand facilities in Abuja.

Oluwagbemi also noted that Greenville would launch 17 more refuelling stations nationwide by the end of the year adding that fare reductions should take effect nationwide by the end of October.

“We have partnered with Matrix Energy to establish five new stations in Delta and Abuja. NNPC has completed six stations in Abuja, with six more expected in Lagos by October.” he added.

What You Need to Know About CNG

Compressed Natural Gas (CNG) is a cleaner, more cost-effective alternative to traditional fuels like petrol and diesel.

It is made by compressing natural gas (mainly methane) to less than 1% of its volume at standard atmospheric pressure.

It is much cleaner than petrol and diesel, producing significantly fewer pollutants as it emits lower levels of carbon dioxide (CO₂), nitrogen oxides (NOx), and particulate matter, making it an environmentally friendly option.

One of the main advantages of CNG is its affordability. It is substantially cheaper than petrol and diesel, offering up to 60% savings on fuel costs.

CNG-powered vehicles are known for their reliability and safety. It burns efficiently, leading to smoother engine performance and longer engine life. It is lighter than air, so in the event of a leak, it dissipates quickly, reducing the risk of fire or explosion.

Vehicles powered by CNG are also equipped with reinforced fuel tanks that are designed to withstand high pressure.

Existing petrol or diesel vehicles can be converted to run on CNG as the installation of a CNG kit, which includes a fuel tank, pressure regulator, and CNG injectors would be made.

 

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