Transport fare to crash by 40% as FG unveils new plan for CNG bus

• On Friday, the Nigerian Federal Government revealed a plan to upgrade the compressed natural gas infrastructure
• The program director of the Presidential Compressed Natural Gas Initiative delivered a speech during the event
• According to him, the new plan will make travelling from Abuja to the Ajaokuta train station less expensive

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian Federal Government unveiled a plan on Friday to improve the infrastructure for compressed natural gas and reduce transportation costs by more than 40%.

The federal government revealed a plan to lower transportation costs and enhance compressed natural gas infrastructure. Photo Credit: FG
Source: UGC

This program was formally launched in Abuja on Friday at a signing ceremony for a Memorandum of Understanding., acording to a ChannelsTV report.

Michael Oluwagbemi, the Presidential Compressed Natural Gas Initiative's program director, spoke at the ceremony and emphasized the government's commitment to providing cheap transportation in spite of 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 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).

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.”

Oluwagbemi claimed that in addition to offering immediate cash assistance, the program also promotes the conversion of current commercial vehicles to CNG, which is offered at a price reduction of up to 60% when compared to petrol.

“The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” he asserted.

The director stated that by the end of October, nationwide implementation of transportation fare reductions is anticipated, with transformed vehicles clearly labelled to reflect the lower fares.

“The NURTW has committed to ensuring compliance with these new rates. If any operator violates the agreed-upon fare, they will reimburse the full installation cost,” he warned.

Presidential CNG initiative takes fresh action

The Presidential Compressed Natural Gas Initiative (PCNGi) on Friday, September 27, commenced a transport fare drop programme across Nigeria.

Legit.ng reports that starting with Abuja, the PCNGi ramped up the adoption of compressed natural gas (CNG) as a cleaner, more affordable alternative to fuel.

Representatives of the PCNGi signed an MOU with the National Union of Road Transport Workers (NURTW) covering the Abuja to Itakpe station—Ajaokuta train station—Adavi route to convert fleet vehicles to CNG in return for a 30-40% fare reduction.

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Source: Legit.ng