The Presidential Compressed Natural Gas Initiative (P-CNGi) has successfully deployed 160 Compressed Natural Gas (CNG) buses across various transport unions and sub-national bodies as part of efforts to mitigate the impact of high transportation costs following the removal of fuel subsidies.
In an interview with the News Agency of Nigeria (NAN) in Abuja, Mr. Michael Oluwagbemi, the Programme Director/Chief Executive of P-CNGi, highlighted the initiative’s progress. According to Oluwagbemi, the deployment of these buses will help alleviate the burden of rising transport fares on Nigerians.
The P-CNGi has already allocated 75 buses to prominent transport unions, including the Nigerian Union of Road Transport Workers (NURTW), Road Transport Employers Association of Nigeria (RTEAN), and the Nigerian Association of Road Transport Owners (NARTO), with the assistance of the Federal Ministry of Transportation.
Additionally, 85 buses have been distributed to state government-affiliated mass transit companies in Oyo, Ekiti, Kogi, Kwara, Lagos states, and the Federal Capital Territory (FCT). These buses are expected to reduce fare prices significantly. For instance, Pacesetters Transport Company in Oyo State saw a reduction in fares from N8,000 to N3,200 for the Lagos-Ibadan route during the recent festive period. Passengers using petrol-powered buses also benefitted from lower fares, which dropped to N6,000 due to increased competition and price pressures.
Oluwagbemi emphasized that the deployment of CNG vehicles is already delivering visible benefits across the country, with fares discounted by as much as 50 percent in the states where the buses are operational. In the FCT, residents have enjoyed 40 days of free rides on the newly deployed buses, with a 30 percent fare discount currently in place.
The initiative is part of the broader palliative measures introduced by the administration of President Bola Ahmed Tinubu to cushion the economic challenges caused by the fuel subsidy removal. Oluwagbemi reiterated that the long-term goal is to harness Nigeria’s natural gas resources to power the economy, reduce transportation costs, and improve the living standards of Nigerians.
This year, P-CNGi plans to focus on expanding bus deployments between Lagos and Abuja while working with sub-national governments to close transportation gaps across the country.
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