The Presidential Initiative on Compressed Natural Gas (Pi-CNG) has announced that Nigerians using CNG-powered public transport on certain routes will see lower fares starting from October 1. This move is part of the Federal Government's efforts to reduce transport costs for commuters. According to Pi-CNG Executive Chairman, Ismaeel Ahmed, reductions in fares are already being recorded on routes served by CNG vehicles.
Ahmed revealed that commuters on CNG-powered buses between Gwagwalada and central Abuja are paying about 40% less than prevailing commercial fares. This significant reduction in fares is a result of the government's efforts to promote the use of CNG as a cheaper alternative to petrol. The initiative has gained traction, with Nigeria now having over 90 CNG refuelling stations, up from fewer than 10 before 2023.
The Pi-CNG programme has been largely driven by private investment, with Pi-CNG providing the necessary enabling environment to expand conversion and refuelling infrastructure. Over 120,000 vehicles have been converted to run on CNG, and the presidency has reported more than 400 certified conversion centres nationwide. This expansion is expected to lead to further reductions in transport costs for commuters.
President Bola Tinubu has urged states to accelerate the implementation of the National Affordable CNG Transit Programme, citing examples of existing reductions in transport costs. He noted that CNG-converted vehicles offer fares about 40% lower on Abuja commuter routes. Additionally, alternative-energy transport has reduced fares by as much as 50% in Adamawa, while CNG and electric public transport schemes have lowered costs in Borno, Oyo, Enugu, Niger, and other states.
The President has also directed the rollout of an additional 500 CNG refuelling stations, which will raise the government's planned nationwide network to 1,000 stations. This expansion is intended to reduce dependence on petrol and ensure that lower energy costs translate into cheaper fares for commuters. The government aims to make CNG and electric transport more accessible to Nigerians.
Ahmed also mentioned that the conversion of another 100,000 vehicles, announced earlier in the year following a presidential directive, is nearing completion. Kano State, which previously had no CNG station, now has 10 refuelling stations, exemplifying the programme's expansion. This development is expected to lead to further reductions in transport costs and make CNG-powered transport more accessible to Nigerians.
The government's efforts to promote CNG and electric transport are expected to have a positive impact on Nigerians, particularly commuters who rely on public transport. With lower fares and an expanded network of CNG refuelling stations, Nigerians can expect to benefit from cheaper transport costs. The programme's success will depend on continued investment and implementation.
Key points
- Reductions in CNG transport fares are expected to be seen on select routes from October 1.
- The Nigerian government aims to reduce dependence on petrol and ensure lower energy costs translate into cheaper fares for commuters.
- Over 120,000 vehicles have been converted to run on CNG, with over 90 CNG refuelling stations now operational in Nigeria.
