The Federal Government of Nigeria has unveiled an ambitious initiative to reduce transportation fares by over 40% through the expansion of compressed natural gas (CNG) infrastructure. This announcement was made during a signing ceremony for a Memorandum of Understanding in Abuja on Friday.

Michael Oluwagbemi, the Programme Director of the Presidential Compressed Natural Gas Initiative, highlighted the government’s dedication to making transportation costs more manageable for citizens, especially in light of escalating fuel prices. “We are working diligently to lower transportation fares during these challenging times. The President has introduced a viable alternative to petrol—compressed natural gas,” he remarked.

ALSO READ: Surgeon Returns to Nigeria After 25 Years in the U.S., Committed to Transforming Healthcare

Under this new initiative, fares for eight-passenger vehicles will decrease from N12,000 to N7,000, while four-passenger vehicle fares will drop from N13,000 to N8,000 for trips from Abuja to Ajaokuta train station. Oluwagbemi pointed out that the journey from Itakpe Station to Warri, currently costing N5,000, exemplifies the advantages of the government’s infrastructure investments over the last five years. “This initiative offers substantial savings of over 40%. Passengers traveling from Abuja to Ajaokuta Station will significantly benefit from this intervention,” he noted.

Furthermore, Oluwagbemi mentioned that this initiative aims to provide immediate financial relief while also promoting the conversion of existing commercial vehicles to CNG. The CNG is available at up to 60% lower prices than petrol. “The converted vehicles will not only operate at reduced costs but also provide cleaner, safer, and more reliable transportation options,” he asserted.