Federal government has signed a Memorandum of Understanding (MoU) with branches of the National Union of Road Transport Workers (NURTW): Itakpe Train Station, Ajaokuta, and Adavi, to convert 100 vehicles to Compressed Natural Gas (CNG) in a bid to reduce transport costs by 40 per cent.
This initiative, part of the Presidential Compressed Natural Gas Initiative (P-CNGi), aims to provide free conversion kits to commercial transport operators.
The programme director/chief executive of PCNGi, Michael Oluwagbemi, said this MoU is aimed at reducing fares, which are currently as high as N12,000 to N13,000 from Abuja down to N7,000 for six-to-eight passenger vehicles and N8,000 for 4-passenger vehicles, respectively.
“We are here to commence activities to mark the Independence Day celebrations, which lead us to launch several initiatives aimed at reducing transportation costs for our people.”
“These stations are very important to us as they serve passengers travelling from Kogi to Delta State through Edo State.
“From each of these three stations—Adavi, Ajaokuta, and Itakpe—we are committed to starting with the conversion of 100 vehicles, respectively. Once we achieve the 100 conversions, all vehicles should be ready by the end of October. We need to inspect and evaluate these vehicles to ensure they are ready for service.
“Our conversion centres are ready, with efficiency ranging from 1.2 to 5.6, and I can assure you that currently, we have about 100 car keys with us for vehicles that are being converted,” Oluwagbemi added.
He highlighted that upon completion of the conversion for each respective operation, after reaching 100 vehicles, the NURTW will be committed to enforcing compliance on our behalf. If any operator violates these rules, they will be held responsible for any penalties, demonstrating the union’s commitment to this initiative.
This effort aims to reduce transportation costs from N13,000 to N7,000 to N8,000, making it possible to travel from Edo State to Delta State for less than N10,000. This initiative is aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda for the country.
Oluwagbemi added, “We respect the level of infrastructure, which is a work in progress. As I speak to you, we have just received great news that Greenville is commissioning 17 additional fuel stations across Kwara, Osun, Ibadan, Ekiti, Nasarawa, and FCT Abuja.”
They are also commissioning stations in the northern part of the country, including Kaduna, Katsina, and Jigawa, and recently commissioned one in Lafia about three weeks ago. These efforts aim to ease transportation costs for our people across the nation.
“Our equipment is already on the ground, and this week, we recently signed an MoU with Matrix Energy to build stations across some parts of Niger, Oyo, and other regions of the country,” he stated.
“We are trying to ensure that these stations mean business, and the only viable way is by converting vehicles, which is why we are working very hard to accelerate conversion plans across the country.”
He further stated, “We are also planning to expand our conversion stations from 8 to 10 and launch them in line with the Independence Day celebrations.”
The whole idea is that we are rolling out our targeted plans, and infrastructure development is going to be particularly focused on Kogi State and FCT Abuja for the CNG initiative. Ajaokuta is a major gas hub in Nigeria, and Obajana has CNG stations located between Itakpe and Lokoja, and here in Abuja, six NNPC stations will offer fare reductions for the benefit of the people.
That’s why we are collaborating with the transport union, the NURTW, one of the leading transport unions in the country, which has been working with us from day one to achieve this project, targeting about 40 per cent fare reductions.
This is a learning experience, and we are pleased to inform you that the NURTW is partnering with us, and the Ministry of Youth Development is involved in this. Additionally, motorcycles present another opportunity, as we have rolled out over 2,000 tricycles with them as part of the youth empowerment programs.
Regarding enforcement, we have set up guidelines, and the union is already enforcing them. All CNG vehicles must abide by these rules to ensure compliance with the adjusted pricing.
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