The Federal Capital Territory (FCT) has recorded measurable reductions in transport fares through the deployment of Compressed Natural Gas (CNG) vehicles, according to the Presidential Compressed Natural Gas Initiative (PCNGI ) & Electric Vehicles (EV).
The current reach of the initiative in the FCT is to be expanded to cover more routes.
The PCNGI & EV said CNG-powered commercial vehicles are already operating on a number of Abuja commuter routes at significantly reduced fares on the strength of its partnership with transport operators.
The fare for Area 1–Gwagwalada is now ₦900 as against the former N1500 while the fare from Wuse or Area 1 to Nyanya is ₦420 from the old N700.
“The FCT is already recording measurable reductions in transport fares through the deployment of CNG vehicles, and we are now working to expand the number of buses and routes covered,” an official said by WhatsApp in response to an inquiry from NewsQuest.
Beyond the deployment of buses, the initiative is working with the FCT Administration, transport unions and operators on the broader requirements for affordable CNG transportation, including identifying priority corridors, increasing vehicle conversions and ensuring adequate refuelling infrastructure.
The official said: ”We are also expanding the fleet as additional CNG buses have been allocated to the FCT for commercial operations, with more buses coming into Abuja as part of the current deployment”.
These buses, he said, will be placed on high-traffic routes with clear fare reductions so that commuters can directly benefit from the lower operating cost of CNG.
“So, for the FCT, October 1 is not the beginning of the process”, he added.
According to the official, reduced fares are already being recorded on some routes.
The focus now is on scale for there to be more buses, more converted commercial vehicles, more routes and wider access to those lower fares.
“Ultimately, the objective of the Presidential directive is straightforward.
The savings operators make from using cheaper energy must also be felt by the passenger, he said.
“That is what we are working to achieve in the FCT and across the country.”
Meanwhile, Independent Petroleum Marketers Association of Nigeria (IPMAN) said it is not enough to distribute buses.
Its National President, Alhaji Abubakar Maigandi said the challenge in the implementation of the PCNGI & EV is the stations to convert or install the kits and provision of the CNG at retail outlets.
He said: “Distributing buses is not enough. What people are looking at is the stations they are going to get this CNG and consume.”
The IPMAN boss decried the long frustrating queues around the few CNG stations, noting the situation is frustrating the customers.
“But now if you look where there is CNG we see a very long queue which is frustrating the customers,” he said.
According to him, his members have been reluctant to invest in the CNG owing to lack of support from the Federal Government and the huge capital involved.
Maigandi called for the creation of an Energy Bank from which the marketers can source single digit interest loans.
A consortium comprising downstream energy major Ardova Plc and Diadem Energy plans to establish 100 CNG stations across the country within the next 24 months.
The consortium had proposed 100% acquisition of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited.
The landmark deal which sees private equity manager A.P. Moller Capital exit its investment via Impala Energy Holdings is expected to conclude by December, subject to regulatory and third-party approvals.
The consortium said in a statement that the acquisition will combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base, Diadem’s virtual pipeline logistics, and Ardova’s nationwide retail, logistics and distribution network.
It said the initiative “aims to increase domestic gas utilization and provide lower-cost fuel alternatives for commercial fleets and everyday motorists.”
Ardova also intends to expand the platform’s footprint into the broader West African region.
