Pi-CNG CEO Says Operators Must Comply With Reduced Fare Agreements

CNG-powered-vehicle

Commuters Raise Concerns Over CNG Transport Fare Compliance

The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG) has directed transport operators participating in its programme to maintain reduced transport fares nationwide as part of the Federal Government’s broader effort to ease transportation costs for Nigerians.

The directive was issued by the Executive Chairman of Pi-CNG, Ismaeel Ahmed, following growing complaints from commuters, particularly within the Federal Capital Territory (FCT), over transport fare increases by some operators using compressed natural gas-powered vehicles.

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According to Ahmed, all operators participating under the Pi-CNG scheme signed agreements committing them to reduced pricing structures aimed at delivering affordable transportation benefits to commuters following the Federal Government’s investment in alternative fuel transport infrastructure.

Government Pushes Affordable Transport Through CNG Programme

The Pi-CNG initiative was introduced as part of the Federal Government’s response to rising transportation costs following the removal of petrol subsidies in 2023.

The programme promotes the adoption of compressed natural gas as a cheaper and cleaner alternative to petrol and diesel within Nigeria’s transport sector.

Officials argue that wider adoption of CNG-powered vehicles could significantly reduce operational costs for transport operators while lowering fare pressure on commuters.

According to Ahmed, operators enrolled under the scheme are expected to pass these operational savings on to passengers through lower transport charges.

“There is an existing agreement with all operators signed up with us to maintain reduced pricing structures,” Ahmed stated during an interview reported by the News Agency of Nigeria (NAN).

The CEO explained that the programme’s objective extends beyond vehicle conversion and infrastructure deployment to include direct economic relief for Nigerians facing elevated transportation expenses.

Commuters Raise Concerns Over Fare Compliance

Recent complaints from commuters in Abuja and other urban centres have raised concerns that some transport operators using CNG-powered vehicles are charging fares comparable to conventional petrol-powered services despite benefiting from lower fuel costs.

Passengers reportedly accused certain airport taxi operators and commercial bus services participating in the programme of failing to comply with approved fare structures.

The complaints have intensified scrutiny over the programme’s monitoring and enforcement mechanisms, particularly as transportation costs remain a major contributor to inflation and household spending pressures across Nigeria.

Analysts note that transportation expenses significantly affect urban living costs, food prices, and broader logistics chains within the economy.

Pi-CNG Expands Monitoring and Enforcement

In response to the concerns, Ahmed stated that monitoring personnel and reporting channels have been deployed to improve compliance oversight across transport routes.

According to him, commuters can now submit complaints regarding fare violations through designated reporting mechanisms established under the initiative.

However, the Pi-CNG boss acknowledged that enforcement remains difficult in some areas due to manpower limitations and inconsistent monitoring coverage.

“Once we are not there, people increase their prices, and when we are there, they leave it reduced,” Ahmed said, noting that compliance challenges are not limited to Abuja alone.

He added that verified complaints from passengers have already been investigated and addressed through the programme’s existing oversight structures.

According to officials, the initiative is currently working with strategic partners to strengthen route monitoring and improve fare compliance across major transport corridors nationwide.

CNG Initiative Seen as Key to Transport Cost Reduction

The Federal Government has increasingly positioned compressed natural gas as a critical component of Nigeria’s long-term energy transition and transportation affordability strategy.

Nigeria possesses one of Africa’s largest natural gas reserves, and policymakers have argued that expanding domestic gas utilisation could reduce dependence on petrol imports and lower energy costs across several sectors.

Industry stakeholders note that CNG adoption offers lower operating costs compared with conventional petrol-powered transportation systems, especially amid elevated fuel prices.

Earlier this year, the Nigerian Association of Road Transport Owners (NARTO) disclosed that its partnership with Pi-CNG had helped reduce transport costs by more than 30% across several routes.

NARTO stated that newly deployed CNG and hybrid buses have contributed to safer, cleaner, and more affordable mass transit operations nationwide.

Fuel Subsidy Removal Increased Transport Pressure

Transportation costs have risen sharply across Nigeria since the Federal Government removed petrol subsidies in 2023 as part of broader fiscal reforms.

The subsidy removal significantly increased petrol prices, leading to higher logistics costs and fare hikes across public transport systems.

Inflationary pressure linked to transportation expenses has continued to affect households and businesses, particularly within urban centres where commuting costs represent a substantial portion of monthly expenditure.

Analysts say the success of the Pi-CNG programme could play an important role in moderating transport inflation and improving urban mobility affordability if implementation and enforcement remain effective.

Expansion Plans Continue Nationwide

Ahmed disclosed that expansion efforts are ongoing across additional transport corridors, including the Kubwa route in Abuja, to improve service delivery and strengthen fare compliance.

The Federal Government has also intensified efforts to support vehicle conversion programmes, establish additional CNG refuelling infrastructure, and encourage broader private sector participation within the alternative fuel ecosystem.

Industry analysts believe sustained investment in gas infrastructure, vehicle financing, and regulatory enforcement will be necessary to scale the programme effectively nationwide.

Experts also note that wider adoption of CNG transportation could support broader environmental objectives by reducing emissions associated with conventional fossil fuels.

Media and Public Participation Encouraged

Ahmed called on the media and the public to support monitoring efforts by reporting non-compliant operators and promoting awareness around the programme’s objectives.

“The media has an important role in ensuring the public continues to benefit from this intervention,” he stated.

Analysts argue that public accountability and transparent enforcement mechanisms will be critical to maintaining confidence in the programme as deployment expands across the country.

Conclusion

The directive by Pi-CNG for operators to maintain reduced transport fares underscores the Federal Government’s broader effort to cushion the economic impact of rising transportation costs through alternative fuel adoption.

While compressed natural gas initiatives have shown potential for reducing operating expenses and improving affordability, concerns over compliance and enforcement continue to challenge implementation.

As monitoring expands and additional CNG infrastructure is deployed, the effectiveness of the programme will likely depend on stronger oversight, operator accountability, and sustained investment in Nigeria’s emerging gas-powered transport ecosystem.

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Ayomide Fiyinfunoluwa

Written by Ayomide Fiyinfunoluwa, Housing Journalist & Daily News Reporter

Ayomide is a dedicated Housing Journalist at Nigeria Housing Market, where he leads the platform's daily news coverage. A graduate of Mass Communication and Journalism from Lagos State University (LASU), Ayomide applies his foundational training from one of Nigeria’s most prestigious media schools to the fast-paced world of property development. He specializes in reporting the high-frequency events that shape the Nigerian residential and commercial sectors, ensuring every story is anchored in journalistic integrity and professional accuracy.

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