Presidential CNG Initiative gives New Fares Across Abuja

Abuja, Nigeria —  The Presidential Compressed Natural Gas Initiative (PCNGI) has rolled out a revised transport fare structure for intra-city routes within Nigeria’s Federal Capital Territory (FCT), aimed at easing the economic burden on commuters following the fuel subsidy removal.

The update was disclosed by Mr. Michael Oluwagbemi, Programme Director of PCNGI, during a sensitization exercise held at the Area 1 Motor Park in Abuja. Represented by Mr. David Idakwo, Northern Regional Coordinator for the CNG Expansion Programme, the director emphasized the federal government’s commitment to promoting cost-effective and eco-friendly transportation solutions.

According to Oluwagbemi, the updated fare regime is a direct outcome of the increasing adoption of Compressed Natural Gas (CNG) by commercial vehicle operators across the FCT. He noted that enforcement mechanisms have been established in collaboration with the National Union of Road Transport Workers (NURTW) to ensure compliance, warning that defaulters would face strict penalties.

“The era of exploitative pricing must end,” he said. “CNG presents a viable, affordable alternative for mass transportation, and operators must align with this national objective.”

Mr. Jibril Ibrahim, Secretary of the NURTW Garki Branch, expressed the union’s full support for the revised structure and confirmed that more than 50% of vehicles operating from the Area 1 park have already undergone successful CNG conversion. He reiterated the union’s readiness to sanction any non-compliant driver.

This development follows President Bola Ahmed Tinubu’s 2023 approval of the Presidential CNG Initiative—an ambitious national project launched to mitigate the ripple effects of fuel subsidy removal and accelerate Nigeria’s transition to cleaner, more accessible energy sources.

Key objectives of the PCNGI include:

•  Establishing stakeholder-driven intra-state transit systems powered by CNG.
• Supporting state governments in acquiring CNG-powered buses through retrofitting, conversions, and new procurements.
• Enabling private sector participation with innovative financing models for mass transit operators.
• Creating incentives for investment across the CNG value chain—from processing to distribution.

Building technical capacity through training and technology transfer to generate sustainable employment within the transport and energy sectors.

The initiative was formally launched with the commissioning of seven CNG vehicle conversion centres nationwide. During the symbolic handover of CNG buses to the State House, Mr. Zacch Adedeji, Chairman of the Steering Committee, announced that the federal government has approved VAT exemptions on CNG buses and is working to secure additional duty waivers for critical components across the CNG value chain.

By Taiwo  Olatinwo | May 3, 2025