FG Targets 90% Energy Cost Savings for Bus Drivers with CNG Vehicles

By peterside Rejoice Eneky

The Federal Government has announced plans to reduce energy costs for commercial vehicle operators by over 90% through the adoption of Compressed Natural Gas (CNG), as part of a broader initiative to make transportation more affordable and environmentally sustainable.

Speaking at the launch of the first CNG Conversion Centre located within the Mile 2 Motor Park in Lagos on Friday, Programme Director and Chief Executive of the Presidential CNG Initiative (P-CNGi), Michael Oluwagbemi, revealed that the project is also expected to cut commuters’ fares by more than 40%.

According to Oluwagbemi, the Mile 2 centre is the first accredited facility of its kind within a motor park, setting a precedent for future decentralised conversion centres across Lagos State. “We are making it easier for vehicle owners, particularly commercial operators, to access the CNG conversion process, which is at no cost to them,” he said.

The initiative aims to replace petrol use with cleaner, more cost-effective CNG alternatives. While acknowledging that full implementation may take time due to infrastructure limitations and transitional hybrid fuel use, Oluwagbemi emphasized that enforcement of fare reductions would begin in parks that reach high levels of CNG adoption.

“If a park like Mile 2 reaches appreciable CNG adoption, we will implement fare reductions in collaboration with the National Union of Road Transport Workers (NURTW),” he stated.

To support the expected rise in demand for CNG, the Nigerian National Petroleum Company (NNPC) Limited plans to roll out 100 refueling stations within the next 18 to 24 months. Additionally, private sector players such as NIPCO, Bovas, and Greenville are also deploying infrastructure across the country.

The initiative is also expected to generate employment. Oluwagbemi disclosed that over 10,000 jobs have been created so far, with 132 accredited conversion centres operating under the Technical, Vocational, and Entrepreneurship Training (TVET) programme. A nationwide P-CNGi Basic Awareness Training is scheduled to commence in the second half of the year.

“We are phasing in full enforcement, but the foundation is being laid. Our first step is free conversion access, followed by affordable gas refueling infrastructure. Once these are in place, fare reductions will be fully enforced,” he added.

Usman Teslim, State Secretary of the Lagos chapter of NURTW, described the initiative as “timely and pragmatic,” adding that it aligns with the union’s objectives to reduce operational costs for drivers while improving commuter affordability.