…Eyes lower transport fares as CNG fleet hits 120,000

By Adewale Sanyaolu

The federal government says it is stepping up efforts to translate the growing adoption of Compressed Natural Gas (CNG) into cheaper transportation for Nigerians, as more than 120,000 vehicles have been converted to the alternative fuel under the Presidential CNG Initiative (Pi-CNG).

Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, said the government’s focus is shifting beyond expanding CNG infrastructure to ensuring that the savings from cheaper fuel are reflected in transport fares and lower logistics costs across the economy.

The renewed push comes against the backdrop of President Bola Tinubu’s directive for the rollout of an additional 500 CNG refuelling stations nationwide, bringing the government’s planned network to 1,000 stations.

Tinubu, after a meeting with state governors last week, said the Federal Government and the states had agreed to take immediate measures to reduce transport fares, with particular emphasis on CNG and electric vehicles.

He also set October 1 as a target for Nigerians to begin benefiting from the savings through lower transport fares.

According to the President, vehicles powered by CNG spend between 60 and 80 per cent less on fuel than their petrol-powered counterparts, underscoring the potential of the fuel to reduce operating costs for commercial transport operators and, ultimately, commuters.

Ekpo said the Federal Government was determined to deepen the use of CNG as a cheaper, cleaner and more sustainable transportation fuel, noting that the initiative had moved beyond the pilot stage and was increasingly becoming part of Nigeria’s transport energy mix.

Since the launch of the Pi-CNG in 2023, the Ministry, working with relevant stakeholders, has catalysed more than $2 billion in investment across the CNG value chain, supporting the expansion of refuelling infrastructure, vehicle conversion centres, technical capacity and other components required for mass adoption.

More than 120,000 vehicles have so far been converted to CNG through a network of over 400 certified conversion centres, while more than 90 refuelling stations have been established nationwide.

The programme has also trained over 7,700 automotive technicians, generated more than 10,000 direct and indirect jobs and facilitated the deployment of 655 CNG buses and 5,123 CNG tricycles.

The Presidential Initiative on CNG and Electric Vehicles currently puts the number of converted vehicles at over 120,000 and certified conversion centres at more than 400, highlighting the rapid expansion of the ecosystem.

Ekpo said the figures demonstrated that CNG was no longer merely a future alternative fuel but an increasingly viable option already being deployed by commercial transport operators, private motorists and fleet owners across the country.

He said the ultimate objective of the government was not simply to increase the number of CNG-powered vehicles and refuelling stations, but to ensure that lower fuel costs translate into reduced transportation and logistics expenses.

According to him, cheaper transportation would have a wider impact on the economy by reducing the cost burden on commuters, farmers, traders, businesses and other productive sectors that depend heavily on road transportation.

“The objective is not simply to increase the number of CNG vehicles and refuelling stations, but to translate fuel savings into lower transportation and logistics costs, ease the cost of living and improve economic productivity,” the Minister said.

He added that commercial transport operators, private vehicle owners and fleet managers were already reporting fuel-cost savings and improved operating margins, while commuters using CNG-powered buses were beginning to benefit from lower fares.

To sustain the momentum, Ekpo said the Ministry was collaborating with the Pi-CNG, the Midstream and Downstream Gas Infrastructure Fund (MDGIF), state governments, transport unions, operators, investors and other stakeholders to expand conversion and refuelling infrastructure.

He said efforts were also underway to develop dedicated CNG corridors and extend access to underserved communities, particularly as the Federal Government seeks to make the fuel more accessible outside major urban centres.

The Minister commended Tinubu for approving the additional 500 CNG stations, describing the move as a major boost to the government’s drive to expand access to cheaper transport energy.

The new stations, when added to the 500 previously ordered under the MDGIF, will take the planned national network to 1,000 stations. The Federal Government is also financing more than 100 gas projects, including CNG mother and daughter stations, as part of the broader infrastructure expansion.

Ekpo also commended state governors that had embraced the CNG programme through investments and partnerships, urging those yet to key into the initiative to do so in the interest of commuters and the wider economy.

He assured Nigerians that the Federal Government would continue to work with investors and industry stakeholders to accelerate CNG infrastructure deployment, deepen domestic gas utilisation and ensure that the benefits of cheaper transport fuel ultimately reach Nigerians at the grassroots.

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