The Federal Capital Territory (FCT) has seen a significant decrease in transport fares following the deployment of Compressed Natural Gas (CNG) vehicles, according to the Presidential Compressed Natural Gas Initiative (PCNGI) & Electric Vehicles (EV). The initiative has partnered with transport operators to offer reduced fares on several Abuja commuter routes. For instance, the fare from Area 1 to Gwagwalada has decreased to ₦900 from ₦1,500, while the fare from Abuja to Nyanya has dropped to ₦420 from ₦700.
The PCNGI & EV is working to expand the number of buses and routes covered in the FCT. An official stated that the initiative is working with the FCT Administration, transport unions, and operators to ensure affordable CNG transportation. This includes identifying priority corridors, increasing vehicle conversions, and ensuring adequate refueling infrastructure. Additional CNG buses have been allocated to the FCT for commercial operations, with more buses expected to arrive in Abuja.
The initiative aims to provide cheaper energy alternatives for commercial fleets and everyday motorists. According to the official, the savings operators make from using cheaper energy must also be felt by the passenger. The focus now is on scaling up the initiative to have more buses, more converted commercial vehicles, more routes, and wider access to lower fares.
However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns about the implementation of the PCNGI & EV. National President Alhaji Abubakar Maigandi stated that distributing buses is not enough; what people are looking at is the stations where they can get CNG and consume it. He decried the long frustrating queues around the few CNG stations, noting that the situation is frustrating customers.
A consortium comprising Ardova Plc and Diadem Energy plans to establish 100 CNG stations across Nigeria within the next 24 months. The consortium had proposed a 100% acquisition of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited. The landmark deal is expected to conclude by December, subject to regulatory and third-party approvals.
Reports from across the country show that the government's initiative on CNG is beginning to take shape in various states. Abia State has opted for electric buses rather than CNG for its Green Shuttle program, with 40 active electric buses operating on several routes. Fares on the Green Shuttle are substantially lower than those charged by conventional operators on some routes.
Other states, such as Delta and Enugu, are also implementing CNG initiatives. Delta State is preparing to launch its MORE Mass Transit Scheme with 50 CNG buses, while Enugu has recorded significant fare reductions following the deployment of 100 CNG buses. The Enugu-Nsukka fare has fallen from ₦2,500 to ₦1,500, while the Enugu-Agbani fare has dropped from ₦1,000 to ₦500.
Key points
- The FCT has recorded measurable reductions in transport fares through the deployment of CNG vehicles.
- The initiative aims to provide cheaper energy alternatives for commercial fleets and everyday motorists.
- Various states across Nigeria are implementing CNG initiatives to reduce transport fares and provide affordable energy alternatives.
