The Federal Government, through the Presidential Compressed Natural Gas Initiative, has signed a Memorandum of Understanding with the leadership of the National Union of Road Transport Workers (NURTW) from Itakpe and Ajaokuta train station units on the adoption of Compressed Natural Gas (CNG) for commercial vehicles.
This agreement which was signed in Abuja on Friday, according to Michael Oluwagbemi, the programme director of the Presidential Compressed Natural Gas Initiative, is part of the government’s commitment to ameliorate the hardship faced by Nigerians, as a result of the rising fuel costs.
Oluwagbemi explained that with the agreement, transportation fares for a six or eight-seater vehicle will drop to N7,000 from N12,000, while fares for four-passenger per vehicle will also decline from N13,000 to N8,000 from Abuja to Ajaokuta train station.
He said, “We’re working hard to bring transportation fares down, especially during these challenging times. Mr. President has introduced a great alternative to the fuel petrol problem – Compressed Natural Gas.
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“Specifically, the trip from Itakpe Station to Warri costs N5,000, showcasing the benefits of our infrastructure investments over the past five years. We must continue to support this progress. This represents a significant savings of over 40 percent. Passengers travelling from Abuja to Ajaokuta Station will greatly benefit from Mr President’s intervention.
“The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.”
Oluwagbemi explained that a total of ten CNG fuel conversion centres have already been established between Abuja, Itakpe, and Ajaokuta, including six NNPC stations and two NIPCO stations, adding that more stations were in the pipeline, with collaborations with Bovas to introduce additional facilities in Abuja.
According to him, with inspections of vehicles expected to end by next week, the conversions will commence shortly thereafter.
“With over 100 vehicles applying for conversion, we anticipate a two-to-three-week process,” Oluwagbemi explained.
Oluwagbemi assured that transportation fare reductions be implemented nationally by the end of October, with converted vehicles prominent labelled to indicate reduced fares.
“This initiative not only aims to ease the financial strain on passengers but also seeks to create a sustainable transportation model. This is a win-win situation, as transport workers will keep some savings while passing benefits to the Nigerian people. You’re saving the country from bankruptcy by taking on this task,” Oluwagbemi added.
Adeyemo Teslim, the secretary of the NURTW’s Ajaokuta unit said, “We believe joining forces will yield multifaceted benefits, which we are eager to support.”
The agreement also includes an enforcement mechanism to ensure compliance with the new fare structure.
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