LAGOS – The Nigerian Government has entered into a Memorandum of Understanding (MoU) with the aim of decreasing transportation costs by more than 40%.
This plan is part of the government’s efforts to assist citizens amidst the increasing fuel prices.
The Memorandum of Understanding was signed on Friday during a ceremony in Abuja.
Michael Oluwagbemi, the Programme Director of the Presidential Compressed Natural Gas Initiative, mentioned that the government is committed to reducing the financial 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 emphasized.
The revised fare structure is set to benefit millions of Nigerians who depend on public transportation.
According to the new arrangement, fares for eight-passenger vehicles will decrease from N12,000 to N7,000; 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 be priced at N5,000.
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This indicates a saving of more than 40%.
The program promotes the conversion of current commercial vehicles to Compressed Natural Gas (CNG), which is offered at a discount of up to 60% compared to petrol prices. Oluwagbemi stated, “The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.”
Nationwide reductions in transportation fares are expected to be put in place by the end of October, with converted vehicles clearly marked to show reduced fares.
The Nigerian Union of Road Transport Workers (NURTW) has pledged to ensure adherence to these new rates.
Ten CNG fuel conversion centers have already been established between Abuja, Itakpe, and Ajaokuta, including six stations operated by the Nigerian National Petroleum Corporation and two by NIPCO. Additional stations are in the works, with partnerships being formed with Bovas to introduce more facilities in Abuja.
Oluwagbemi mentioned that Greenville is preparing to launch 17 more refueling stations across Nigeria by the end of the year. Vehicle inspections are anticipated to be completed next week, with conversions starting shortly after.
Adeyemo Teslim, Secretary of the NURTW’s Ajaokuta unit, expressed appreciation for the collaboration.
He stated, “We believe that working together will bring about various benefits, which we are keen to support.”
