The Nigerian Government has signed a Memorandum of Understanding (MoU) aimed at reducing transportation costs by over 40%. This initiative is part of the government’s strategy to alleviate the financial strain on citizens caused by rising fuel prices. The MoU was signed on Friday during a ceremony in Abuja.
Michael Oluwagbemi, the Programme Director of the Presidential Compressed Natural Gas Initiative, reaffirmed the government’s commitment to easing the burden on Nigerians. “We are striving to lower transportation costs, especially in these challenging times. The President has introduced a significant solution to the petrol issue—compressed natural gas,” Oluwagbemi stated.
The revised fare structure will benefit millions of Nigerians who rely on public transport. Under the new arrangement, fares for eight-passenger vehicles will decrease from N12,000 to N7,000, and fares for four-passenger vehicles will be reduced from N13,000 to N8,000 for trips from Abuja to Ajaokuta train station. The journey from Itakpe Station to Warri will cost N5,000.
The programme encourages the conversion of commercial vehicles to Compressed Natural Gas (CNG), which is up to 60% cheaper than petrol. “The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” Oluwagbemi noted.
Nationwide reductions in transport fares are expected to be implemented by the end of October, with converted vehicles clearly marked to reflect the reduced fares. The Nigerian Union of Road Transport Workers (NURTW) has pledged to enforce compliance with these new rates.
Ten CNG fuel conversion centres have been established between Abuja, Itakpe, and Ajaokuta, including six operated by the Nigerian National Petroleum Corporation and two by NIPCO. More stations are planned, with partnerships forming with Bovas to add facilities in Abuja.
Oluwagbemi also announced that Greenville is set to open 17 additional refuelling stations across Nigeria by year-end. Vehicle inspections are expected to be completed next week, with conversions to begin shortly after.
Adeyemo Teslim, Secretary of the NURTW’s Ajaokuta unit, expressed gratitude for the collaboration, stating, “We believe that working together will bring about various benefits, which we are keen to support.”
