The Federal Government has signed a Memorandum of Understanding (MoU) with the National Union of Road Transport Workers (NURTW) to adopt Compressed Natural Gas (CNG) for commercial vehicles, reducing transportation fares by 40%.
The agreement, signed under the Presidential Compressed Natural Gas Initiative, aims to alleviate the hardship faced by Nigerians due to rising fuel costs.
According to Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative, transportation fares for six or eight-seater vehicles will drop from N12,000 to N7,000, while four-passenger vehicles will see a reduction from N13,000 to N8,000 for trips from Abuja to Ajaokuta train station.
Ten CNG fuel conversion centres have been established between Abuja, Itakpe, and Ajaokuta, with plans for additional facilities. Vehicle inspections are expected to conclude next week, followed by conversions.
The transportation fare reductions are slated for national implementation by the end of October. The NURTW has committed to ensuring compliance with the new fare structure.
