In a bid to provide financial relief to commuters grappling with the impacts of fuel subsidy removal, the Presidential Compressed Natural Gas Initiative (PCNGI) has announced a groundbreaking fare reduction for taxis powered by Compressed Natural Gas (CNG) in Abuja. Michael Oluwagbemi, CEO of PCNGI, revealed that fares for taxis operating at the popular Area One Motor Park in Garki have been slashed by 40%, making transportation more affordable for residents in the Nigerian capital.
The initiative comes after a successful conversion of over 50% of the taxis at the Area One park to CNG fueling. Oluwagbemi, who was represented by Mr. David Idako, the Regional CNG Coordinator for the North, explained that the fare reduction is part of the government’s effort to cushion the economic effects of the fuel subsidy removal. The price cuts are expected to make daily transportation more affordable for commuters while encouraging the use of CNG as a cleaner, more cost-effective alternative to petrol.
“We have worked closely with the leadership of the National Union of Road Transport Workers (NURTW) to implement this fare reduction,” said Idako. “This initiative is a significant step towards easing the financial burden caused by the subsidy removal and promoting a more sustainable energy source in transportation.”
The newly revised fares now range from N240 to N900, depending on the route. Some of the most notable fare reductions include:
From Area One to Gwagwalada: Reduced from N1,500 to N900
From Area One to Bwari Dutse: Reduced from N1,500 to N900
From Area One to Kuje: Reduced from N1,200 to N720
From Area One to Galadimawa: Reduced from N500 to N300
From Area One to Mpape: Reduced from N1,000 to N600
From Area One to Wuse: Reduced from N420 to N240
The fare reduction is seen as a much-needed relief for commuters who had faced rising transportation costs due to the removal of fuel subsidies. According to Idako, this is just the beginning, as more taxis are expected to be converted to CNG, with the initiative expanding beyond Abuja to other parts of the country.
“We are currently working to convert more vehicles to CNG, and we’re also collaborating with stakeholders in other cities to replicate this price reduction and push for broader adoption of CNG-powered transport,” said Idako. “We’re committed to ensuring that Nigerians benefit from these reductions, and to promoting a cleaner, greener alternative to fossil fuels.”
To ensure that the price reductions are implemented effectively, a task force comprising members of the PCNGI and NURTW has been established to monitor compliance. Idako explained that CNG stickers indicating the new prices would be displayed on the vehicles to inform passengers, and commuters are encouraged to report any non-compliant drivers to the task force.
Ibrahim Jibril, the Secretary of the Garki Branch of NURTW, expressed full support for the fare reduction, highlighting the financial advantages of switching to CNG. “It’s a win-win situation,” Jibril said. “While petrol prices continue to rise, CNG provides an affordable and cleaner alternative. The savings are substantial, as you can use the same volume of gas for much less compared to petrol, making it a more sustainable option for both drivers and passengers.”
In addition to reducing fares, the PCNGI has announced plans to increase the availability of CNG fueling stations across the country. Tosin Coker, the Commercial Coordinator of the initiative, assured that the government is working diligently to expand the CNG infrastructure. “We currently have 10 CNG stations in Abuja, and we plan to add two more stations next month, with further expansion in the pipeline,” Coker said.
The transition to CNG-powered vehicles is part of the broader efforts by the Nigerian government to reduce carbon emissions and promote alternative energy sources. By switching to CNG, transportation in Nigeria could reduce dependence on petrol, lower transportation costs, and contribute to a more sustainable and eco-friendly future.
This move has been widely welcomed by Abuja residents, especially small business owners who rely heavily on affordable transportation for their daily operations. With the successful reduction in fares, more Nigerians are expected to embrace CNG taxis as a reliable, cost-effective, and environmentally friendly alternative to traditional petrol-powered vehicles.
As the initiative continues to expand, the PCNGI remains committed to ensuring that Nigerians benefit from affordable transportation while promoting cleaner energy alternatives.