The Federal Government has signed an agreement with commercial transporters in Kogi State to install 300 Compressed Natural Gas kits in vehicles, which will reduce transport fares from Abuja to train stations in the state by around 40%.
The deal, involving branches of the National Union of Road Transport Workers in Ajaokuta, Itakpe, and Adavi, will provide free installation of CNG kits for commercial vehicles operating on these routes.
Speaking at the signing ceremony in Abuja, Engr. Michael Oluwagbemi, Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), said the government plans to convert up to 1,000 vehicles to CNG.
Oluwagbemi explained that this move would lower the fare from around ₦13,000 to ₦7,000 per passenger for trips to the train stations. With 10 CNG refueling stations already established between Abuja and Kogi, drivers are expected to have no issues refueling their vehicles.
“This is the first time we are directly linking our conversion program to reducing transportation fares. It’s not going to be the last,” Oluwagbemi said. “We want to make sure that Mr. President’s vision for lower transportation costs for all Nigerians is immediately felt, especially by those at the bottom of the pyramid.”
He added that the conversion program offers up to one million CNG kits for commercial vehicles. “What we are doing is not just converting vehicles but also ensuring that transportation costs are reduced.”
Oluwagbemi also mentioned that by the end of October, at least 100 vehicles will be converted, resulting in transport fares dropping to ₦7,000 for six to eight-passenger vehicles and ₦8,000 for four-passenger vehicles—a savings of over 40%.
The agreement is expected to lower costs for passengers traveling from Abuja to Warri via Itakpe, reducing the fare from ₦18,000 to around ₦10,000. Efforts are also underway to convert trains to CNG, potentially reducing the fare between Itakpe and Warri, currently ₦5,000.
On behalf of the transporters, Mr. Adeyemo Teslim, Secretary of the Adavi Branch of NURTW, assured the government of the union’s cooperation. He also promised that the fare reduction agreement would be strictly followed.
Currently, the bus fare from Abuja to Warri costs ₦32,000 per passenger.
