In a decisive move to alleviate the economic burden on Nigerians, the Federal Government has announced a 40% reduction in transport fares across the country. This initiative is part of the Presidential Compressed Natural Gas Initiative (PCNGI), aimed at promoting the use of Compressed Natural Gas (CNG) as a more affordable and environmentally friendly alternative to petrol.
The PCNGI, in collaboration with the National Union of Road Transport Workers (NURTW), is spearheading this transition to CNG-powered vehicles. The initiative seeks to convert 150,000 vehicles to CNG by the end of the year, with an ambitious target of reaching 1 million conversions by 2027. This shift is expected to significantly reduce transportation costs, as CNG is priced at approximately ₦230 per litre, compared to petrol’s ₦1,080 per litre.
Michael Oluwagbemi, the director of the PCNGI, emphasized the benefits of this transition, stating that “converted vehicles will operate at a significant discount, remain flexible, and run cleaner, cheaper, safer, and more reliably.” The government has already invested $200 million into the initiative, with plans to inject an additional $450 million into infrastructure development, including the establishment of conversion centres and filling stations nationwide.
Despite these efforts, challenges persist. Currently, there are fewer than 150 accredited conversion centres across Nigeria, limiting accessibility for many vehicle owners. Safety concerns have also been raised following an incident involving a vehicle explosion in Benin, attributed to unauthorized conversion practices. The government has responded by emphasizing the importance of using licensed conversion centres to ensure safety standards are met.
To encourage adoption, the government is offering subsidies and tax waivers for CNG equipment, along with a ₦10 billion credit facility to support interested parties. These measures aim to address public skepticism and promote widespread acceptance of CNG as a viable alternative fuel source.
The 40% fare reduction is expected to have a ripple effect on the economy, potentially lowering the cost of goods and services by reducing transportation expenses. This initiative aligns with the government’s broader strategy to leverage Nigeria’s abundant natural gas reserves, estimated at 200 trillion cubic feet, to drive economic growth and environmental sustainability.
As the PCNGI continues to expand, the government remains committed to addressing the challenges and ensuring that the benefits of this initiative are realized by all Nigerians.
