The Nigerian Government has signed a Memorandum of Understanding (MoU) aimed at reducing transportation fares by over 40%.
This initiative is part of the government’s efforts to provide relief to citizens amidst rising fuel prices.
The MoU was signed on Friday in a ceremony held in Abuja.
Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative said the government is dedicated to easing the financial strain on Nigerians.
“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,” Oluwagbemi stated.
The reduced fare structure is expected to benefit millions of Nigerians who rely on public transportation.
Under the new plan, fares for eight-passenger vehicles will be reduced from N12,000 to N7,000; fares for four-passenger vehicles will drop from N13,000 to N8,000 for trips from Abuja to Ajaokuta train station; the trip from Itakpe Station to Warri will cost N5,000.
This represents a savings of over 40%.
The initiative encourages the conversion of existing commercial vehicles to Compressed Natural Gas (CNG), which is sold at a discount of up to 60% compared to petrol prices. “The converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably,” Oluwagbemi added.
Transportation fare reductions are expected to be implemented nationally by the end of October, with converted vehicles prominently labelled to indicate reduced fares.
The Nigerian Union of Road Transport Workers (NURTW) has committed to ensuring compliance with these new rates.
Ten CNG fuel conversion centres have already been established between Abuja, Itakpe, and Ajaokuta, including six stations operated by the Nigerian National Petroleum Corporation and two by NIPCO. More stations are planned, with partnerships being formed with Bovas to introduce additional facilities in Abuja.
Oluwagbemi added that Greenville is set to inaugurate 17 additional refuelling stations across Nigeria by year-end. Vehicle inspections are expected to conclude next week, and conversions will commence shortly thereafter.
Adeyemo Teslim, Secretary of the NURTW’s Ajaokuta unit, expressed gratitude for the collaboration.
He said, “We believe joining forces will yield multifaceted benefits, which we’re eager to support.”