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  • CNG-powered taxis in Abuja reduce fares by 40%, says PCNGI boss

    CNG-powered taxis in Abuja reduce fares by 40%, says PCNGI boss

    The Presidential Compressed Natural Gas Initiative (PCNGI), Chief Executive Officer (CEO), Michael Oluwagbemi, on Friday announced a 40 per cent fare reduction by CNG-powered taxis from Motor Park in Area One, Garki, Federal Capital Territory (FCT).

    The discount, according to him, was to lessen the burden of the Premium Motor Spirit (PMS) petrol subsidy removal on the general public.

    Represented by the Regional CNG Coordinator, North, Mr. David Idako at the motor park in Abuja, Oluwagbemi, said the PCNGI management had reduced the price in collaboration with the leadership of the National Union of Road Transport Workers (NUTRW) since over 50 per cent of the vehicles in the garage were already converted to CNG fueling.

    His words: “We have worked hand-in-hand with the National Union of Road Transport Workers. We have converted a lot of their vehicles, and based on the agreement that we have with them, of course, it is for them to reduce the prices for the general public, so that the effect of the fuel subsidy that was taken off, the burden will be reduced on Nigerians.

     “So I am here representing the project director to announce to you that here in Area 1, as of today, Area 1 Park, in conjunction with the leadership of the National Union of Road Transport Workers, we have come here to start enforcing the price reduction. This is why we are here.

    “So what’s the price reduction? Okay, so as of today, what we agreed with the National Union of Road Transport Workers, they have given us the prices, the fare amount from Area 1 to different destinations when they were running on petrol and we have come together, made an analysis and achieved a 40 percent reduction in the fare, in the transportation from Area 1 to all other destinations”

    Oluwagbemi said from Area One to Gwagwalada, which used to cost N1,500 with petrol, was reduced to N900, while Area One to Bwari Dutse,n which was also N1,500, was reduced to N900.

    According to him, Area One to Kuje, which was N1,200, was reduced to N720.

    Read Also: CNG a game changer, but…

    He added that Area One to Galadimawa, which was N500, was reduced to N300.

    The PCNGI boss said Area 1 to Mpap, which used to be N1,000, was reduced to N600. Area one to Zuba, according to him, was 1,500, and that was also reduced to N900.

    He said Area One to Lugbe, which was N700, was reduced to N420, while the Jabi route, which was N720, was reduced to N420.

    Area One to Wuse, he said, was reduced from N420 to N240 while Area One to Nyanya was reduced from N700 to N420.

    He also said Area 1 to Kabusa N800 was reduced to N480, while the Apo route was reduced from N500 to N300.

    On the modalities to ensure compliance with the new fares, he said there was a task force comprising members of the PCNGI and NURTW in place to enforce compliance with the new price regime.

    He added that CNG stickers and the new prices were on the vehicles for passengers’ information.

    Passengers were advised to report defaulting drivers to the task force for sanctions.

    Oluwagbemi stressed, “If they don’t comply, such a driver will be reported to the task force and be disciplined.”

    Speaking on behalf of the union, NURTW Garki Branch Secretary, Mr. Ibrahim Jibril said upon the realization that over 75 per cent of the vehicles in the park had been converted to CNG, a taskforce was put in place for complice.

    He described the new fare as a fair deal on the part of the drivers because there was much more profit for them despite the price crash.

    Asked if the union was in support of the reduction of fair, he said, “Yes, we are in support. If you look at it now, you go to buy fuel, 20,000 Naira. And then you go to buy gas, 4,500 Naira.

    “You will use the same volume, the same time to work. At least you are saving almost 75%. So moving 40% out is just even a bonus because you still have an extra 35% to gain as a driver.”

    On the enforcement of the new fare, he said, “Now, when we noticed that most of the vehicles are being converted, we put a tax force in place in order to check vehicles that are already being converted so that we can be able to give a reduction in their prices. And part of our strategies are vehicles that have been converted. We have a price tag written on the vehicles so that you, as a passenger, if you are going to Gwagwalada, Nyanya, you will notice that this vehicle is being converted, and this is the price tag…

    “So if there is any fault anywhere, we will get to know within a very short time. And we believe that every driver, because we are always there to make sure that it is about their comfort.”

    Meanwhile, the PCNGI Commercial Coordinator, Mr. Tosin Coker, said so many vehicles had been converted to CNG.

    He admitted that there was a little infrastructure lag, which the PCNGI was addressing.

    He said aside from the 10 conversion centres in the FCT, two conversions were underway.

  • CNG a game changer, but…

    CNG a game changer, but…

    • By Tayo Ogunbiyi

    One of the major policy pronouncements of President Bola Tinubu upon his inauguration was the termination of the controversial fuel subsidy regime. I can still vividly recollect how Mr. President looked into the excited crowd at the Eagle Square and screamed, “Fuel subsidy is gone!”

    If the crowd did not fully understand the import of the weighty pronouncement, they surely did by the following morning, as the fuel pump price astronomically moved from around N180 to over N1200. Suddenly, the street became cold and quiet. This was no joke; the street simply stopped smiling from the resultant inflation.

    To say that yours sincerely also felt the heat would be an understatement. Before the cancellation of the fuel subsidy regime, I was hardly spending close to N40,000 on fuel for my car each month. However, with the removal of fuel subsidy, I have been spending close to N300,000 per month on fuel.

    It got so bad that I became nervous each time I gazed at the fuel gauge and discovered I needed to urgently refuel. By now, some Nigerians actually abandoned their cars, opting for commercial vehicles. The road had become lighter with limited vehicles moving around.

    It was a time that truly tested the much-talked-about resilience of Nigerians. Considering the impolite, lousy, and uncouth nature of the typical Lagos driver and bus conductor, for me, going through commercial buses was never an alluring option.

    So, I opted to carry my cross and sulk in silence. Meanwhile, the high cost of fuel was driving me crazy. Still, I chose to go by the hard way, which, as James Hardly Chase says, is the only way.

    But then, I was soon to discover that the hard way, in this regard, was not the only way!

    On a fateful day, I received a call from a good friend of mine who lives in an highbrow part of the metropolis. After exchanging pleasantries, I teased him about the fuel situation.

    “I am sure you guys with fat pay care less about the high cost of fuel. As they say, man pass man”, I said mischievously.

    “Who says?” he asked.

    “For your information, I have not taken my SUV out for about one year now. Fuelling it costs a fortune. So, what I do is to make use of my Corolla car. Comparatively, it’s cheaper to fuel that”, he said.

    Then, all of a sudden, he changed the gear of the conversation.

    “Well, I have since moved on”, he said.

    “How do you mean?” I asked rather curiously.

    “I have converted my SUV to CNG. I cannot come and die”, he replied.

    My friend went on to lecture me on CNG and the process involved in conversion. By the standard of average Nigerian, he spent quite a fortune to make his SUV CNG compliant.

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    That, in his words, was a saving grace. Ever since, he said he has stopped wasting so much on fuelling.

    He said, “That’s the way to go now, my brother. Do not listen to the lies on social media. It’s safe, convenient, and cost-effective to use CNG. I have been using it for about a year now, and I can tell you that I have no regrets”.

    Encouraged by my friend’s sincere analysis and advice, I decided to have a go at the CNG experience. With his guidance, I was able to convert my car at a lesser cost because of its limited engine capacity.

    That was in November 2024.

    Making that decision turned a lifesaver. Indeed, that was probably the wisest financial decision that I made in 2014. From spending close to N300,000 a month on fuel, my expenses dropped dramatically to a little below N30,000 monthly. Yes, you heard me right!

    It was like magic! It was too good to be true. The first time I visited the gas station to fill my tank, and I saw the cost on the meter, I couldn’t believe my eyes.

    “What did you say, sir?” I asked the attendant.

    “Your money is N2,800, sir”, he repeated.

    I cleared my eyes, looked at the meter, made the payment, and quickly zoomed off before he changed his mind.

    That was how I was liberated from the shackles of the high cost of fuel.

    I have been driving my CNG-powered car since November 2024, and I can confidently attest to the fact that it is a better option, especially for middle-income earners.

    I had travelled from Lagos to Osogbo, in Osun State, spending less than N5000 on gas. I had travelled from Lagos to Ibadan in Oyo State, spending a mere N3800 on gas. I had travelled from Lagos to Abeokuta, spending less than N3000 on gas. For the average car user, the CNG is nothing but an economic liberator.

    However, in the typical Naija fashion, these days, it is increasingly becoming tough and arduous to get one’s car filled up. Many Nigerians, especially operatives of Danfo, Marwa, and Korope, have also become compliant.

    Only God knows how!

    But the truth is that a lot of the commercial bus operators now use CNG. As a result of this, getting one’s car filled up with CNG is now like passing through the proverbial eye of the needle. It is increasingly strenuous, stressful, and irritating. These days, one spends close to two hours waiting to get a refill. It’s as bad as that. If not for its immense economic benefits, it’s almost becoming a frustrating experience.

    One finds it rather incredible that in the whole of Lagos, there are not up to eight functional CNG stations. I stand to be corrected! In the whole of Oyo and Osun states, as I write this piece, the functional CNG stations are not up to three. With the high rate at which many are converting to CNG, it is quite clear that the number of CNG stations across the country needs to be increased urgently and rapidly.

    The promoters of CNG did a lot to convince the people to make the shift, so they need to do more to retain them. The government and all stakeholders need to do more to fully entrench the CNG culture into our transport system. It is good to have options, and it is a better option!

    Considering the soothing relief that it brings to the people, especially car users, the only way the government could show that it cares about the welfare of the people is to encourage more investment in the whole CNG system. 

    •Ogunbiyi is Director, Features, Ministry of Information & Strategy, Alausa, Ikeja, Lagos.

  • CNG conversion: Lagos trains vehicle inspection officers, others

    CNG conversion: Lagos trains vehicle inspection officers, others

    Following the Federal Government’s directive on the need to move away from petrol to Compressed Natural Gas (CNG), Lagos State Government, through Lagos State Safety Commission (LSSC), has organised a three-day training for vehicle inspection officers and safety commission officers.

    Speaking at the opening of the training in Ikeja, tagged: A 3-Day CNG training programme for Staff of Vehicle Inspector Services and Safety Commission officers.

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    the Director General, LSSC, Mr Lanre Mojola, said the adoption of CNG as an alternative fuel was not just an energy solution, but also a resolve by the current administration to embrace a cleaner, safer and more affordable energy systems that prioritised the well-being of the people and preservation of the environment.

    He added: “This is a follow-up to the state’s adoption of CNG buses and E-bike into its transportation system, which is in tandem with the presidential initiative on energy transition to a cleaner and alternative fuel. With this, it is the function of the safety commission to train people that will oversee these vehicles on the road, to ensure safety of lives, safety of the users and general public interest as far as safety is concerned.”

  • Portland Gas seeks govt support for CNG expansion in Lagos

    Portland Gas seeks govt support for CNG expansion in Lagos

    Portland Gas Ltd has urged the Federal and Lagos State governments to provide financial assistance for the expansion of its Compressed Natural Gas (CNG) infrastructure in Lagos State.

    Speaking at the launch of the company’s Mobile CNG Refill Unit under the Presidential CNG Initiative in Ojota, Lagos, the company’s Chief Executive Officer, Folajimi Mohammed, stressed the need for funding due to the capital-intensive nature of the business.

    He highlighted the company’s strategy of leveraging the nearby Accela Pipeline to enhance affordability.

    Lagos State Governor Babajide Sanwo-Olu, represented by the Managing Director of Lagos Metropolitan Area Transport Authority (LAMATA), Abimbola Akinajo, reaffirmed the government’s commitment to sustainable transportation.

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    He outlined plans to convert 10 per cent of Lagos’ vehicle fleet of about 400,000 vehicles to CNG within three years, with 2,000 government-owned vehicles transitioning by mid-2025.

    The governor said the state planned to establish 15 CNG refuelling stations by the end of this year.

    Sanwo-Olu called on transport operators and investors to support the shift, positioning Lagos as a leader in Nigeria’s energy transition.

    The Programme Director of the Presidential CNG Initiative, Michael Oluwagbemi, said adopting CNG was crucial for reducing transportation costs and improving air quality.

  • Portland Gas seeks government support for CNG expansion in Lagos

    Portland Gas seeks government support for CNG expansion in Lagos

    Portland Gas Ltd has urged the federal and Lagos state governments to provide financial assistance for the expansion of its Compressed Natural Gas (CNG) infrastructure in Lagos State. 

    Speaking at the launch of the company’s Mobile CNG Refill Unit under the Presidential CNG Initiative in Ojota, the company’s Chief Executive Officer, Folajimi Mohammed, stressed the need for funding due to the capital-intensive nature of the business. 

    He highlighted the company’s strategy of leveraging the nearby Accela Pipeline to enhance affordability. 

    Lagos State Governor, Babajide Sanwo-Olu, represented by the Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA), Abimbola Akinajo, reaffirmed the government’s commitment to sustainable transportation.

    Read Also: NLC seeks CNG filling stations across country

    He outlined plans to convert 10% of Lagos’ vehicle fleet about 400,000 vehicles to CNG within three years, with 2,000 government-owned vehicles transitioning by mid-2025. 

    The governor also stated that the state plans to establish 15 CNG refueling stations by the end of 2025. 

    Sanwo-Olu called on transport operators and investors to support the shift, positioning Lagos as a leader in Nigeria’s energy transition. 

    Meanwhile, the Programme Director of the Presidential CNG Initiative, Michael Oluwagbemi, emphasized that adopting CNG is crucial for reducing transportation costs and improving air quality.

  • CNG Project in Kogi not Akpoti-Uduaghan’s efforts, says Waive

    CNG Project in Kogi not Akpoti-Uduaghan’s efforts, says Waive

    Fresh facts are emerging following the controversy over the attribution of NNPCL and the Presidential Gas Initiative’s Compressed Natural Gas (CNG) projects in Kogi State to Senator Natasha Akpoti-Uduaghan, who allegedly claimed credit for influencing the project.

    Social media has been flooded with posts, particularly from supporters of a former Deputy President of the Senate, criticising Delta’s three APC senators for failing to counter Senator Akpoti-Uduaghan’s alleged diversion of projects meant for Delta State to Kogi State. 

    Some commentators see these as a calculated media attack by the former DSP’s team to undermine the APC senators.

    However, Hon. Francis Ejiroghene Waive, Member of the House of Representatives for Ughelli North, South, and Udu federal constituency, clarified denounced misinformation over the project and emphasised that the gas plant in Kogi is not a political manoeuvre of any senator but an economic decision facilitated by existing gas infrastructure.

    According to him, gas projects fall under the Committee on Gas, not the Local Content Committee, as some claim. 

    He also refuted the notion that the present administration initiated the pipeline transporting gas from the Niger Delta to Niger Republic, reminding Nigerians that former President Muhammadu Buhari started the project. “Such large-scale infrastructure projects require long-term planning and are beyond the tenure of a single administration,” he stated.

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    Hon. Waive pointed out that Niger Delta lawmakers in the 9th Assembly never opposed the pipeline construction during Buhari’s tenure. 

    “If this project were truly questionable, why did Niger Delta representatives remain silent then?” He asserted that controversy only arose when political actors sought to exploit it for their gain.

    He reiterated that the decision to construct five CNG plants in Kogi is purely economic, as the pipeline already provides easy access for distribution to the northern region.

     However, he expressed concern that Senator Akpoti-Uduaghan is attempting to claim credit for the project, misleading the public about her role. He warned that such narratives aim to manipulate public opinion against Niger Delta lawmakers.

    Hon. Waive called for an end to the politicisation of this vital infrastructure project and condemned smear campaigns against leaders working for Nigeria’s economic growth. 

    “Those spreading these falsehoods should reconsider their actions, as misinformation ultimately harms the very people they claim to represent,” he added. 

    A Delta APC chieftain, speaking anonymously, criticised the former DSP’s media team for attempting to tarnish the image of APC lawmakers over political differences. 

    “After reading Hon. Waive’s well-articulated position, one wonders what the former DSP’s media team aims to achieve by spinning false narratives about the Kogi gas project despite knowing the truth; I think Delta APC and its leadership should move past this ugly past,” he added.

    On October 18, 2024, NNPC Gas Marketing Limited (NGML) and A4E Energy signed an agreement to construct a 100 mmscf/d natural gas distribution facility in Ajaokuta, Kogi State. 

    According to NNPCL’s official website, the gas facility (city-gate) will supply natural gas to various domestic LNG facilities, CNG compression sites, and other gas-dependent facilities in Ajaokuta.

    These projects align with the Federal Government’s Decade of Gas and Presidential CNG initiatives to drive Nigeria’s industrialization and transportation sector. On January 31, 2025, NNPCL also commenced the construction of five mini Liquefied Natural Gas plants in Ajaokuta as part of its commitment to the country’s gas revolution.

    The initiative aims to expand domestic gas utilization, boost energy access, support industrialization, and create jobs. NNPCL Group Chief Executive Officer Mele Kyari emphasized that Ajaokuta was chosen for its strategic location, as the company’s pipeline network already reaches the area.

    Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority highlighted Ajaokuta’s emergence as a hub for gas infrastructure projects, including CNG compression and refuelling stations, enabled by government policies such as the Decade of Gas, the Presidential CNG Initiative, and executive directives.

  • ‘Fed Govt subsidising electricity with N200b monthly’

    ‘Fed Govt subsidising electricity with N200b monthly’

    The Federal Government is subsidising electricity supply by N200 billion monthly, Special Adviser to the President on Energy, Mrs. Olu Verheijen, said yesterday.

    She spoke as the government explores ways to improve supply and ensure the subsidies are delivered to the most vulnerable households.

    The special adviser dismissed insinuations in some quarters that the government was considering a 65 per cent increase in electricity tariffs.

    Mrs. Verheijen clarified that even with the increase in tariffs for Band A electricity consumers last year, the government still provides about 35 per cent electricity subsidy, equivalent to N200 billion monthly.

    She said in a statement: “It is a misrepresentation of what I actually said in a recent press interview. I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 per cent of the actual cost of supplying electricity, with the Federal Government continuing to subsidise the difference.”

    The special adviser bemoaned the situation where much of the N200 billion subsidy “benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance”.

    She said the government was implementing a multi-faceted programme to ensure effective pricing and metering of electricity, reduce general cost of electricity supply and ensure that the most vulnerable segment of the society have access to electricity supply.

    According to her, while the government is committed to ensuring fairer pricing over the long term, the immediate focus is on taking decisive actions to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.

    Verheijen outlined government’s power sector priorities to include mass rollout of prepaid meters, targeted subsidy regime that focuses on the most vulnerable, settlement of legacy debt and reduction in costs for alternative power generation.

    She stressed: “The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives.

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    “Every policy is designed with the Nigerian people in mind-eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity.

    “These reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.”

    Verheijen explained that under the Presidential Metering Initiative (PMI), the government plans to accelerate nationwide rollout of seven million prepaid meters, starting this year.

    Mrs. Verheijen noted that the mass rollout of prepaid meters would “finally put an end to the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges”.

    She added that metering would also improve revenue collection across the sector and thus attract the investments needed to strengthen Nigeria’s power infrastructure.

    According to her, a new subsidy regime template is underway to ensure that electricity subsidies get more to the most vulnerable in the society.

    She said: “To address this, the Federal Government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families.”

    The special adviser pointed out that the settlement of legacy power debt is a top priority for the government as mounting debts owed to power generation companies have been part of the major roadblocks to improved service in the sector.

    Verheijen added: “For years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply. By clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians.”

    She said through a range of fiscal incentives, including the Value Added Tax (VAT) and Customs Duty waivers, the government is working to lower the cost of alternative power sources such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).

    Mrs. Verheijen emphasised that these priorities reflect the President Bola Ahmed Tinubu administration’s recognition of the economic realities facing Nigerians and its commitment to ensuring that power sector reforms deliver tangible benefits to citizens.

  • P-CNGi deploys 160 CNG buses to NARTO, NURTW, others – CEO

    P-CNGi deploys 160 CNG buses to NARTO, NURTW, others – CEO

    The Presidential Compressed Natural Gas Initiative (P-CNGi) says it has deployed 160 CNG buses through its transport union partners and sub-nationals, to cushion the effect of high transport cost occasioned by fuel subsidy removal. 

    Michael Oluwagbemi, Programme Director/Chief Executive, P-CNGi, disclosed this in an interview with newsmen in Abuja on Sunday. 

    Oluwagbemi said they had already deployed 75 buses to the Nigerian Union of Road Transport Workers (NURTW), Road Transport Employers Association of Nigeria (RTEAN) and the Nigerian Association of Road Transport Owners (NARTO) through the Ministry of Transportation. 

    He said among the buses deployed to the unions, five each were dedicated for intra-state and 20 each for inter-state. 

    “Last year, during the yuletide we deployed 160 CNG buses to our union partners, through the Ministry of Transportation, namely – NURTW, RTEAN and NARTO.

    “We deployed 75 buses through the transport unions and another 85 buses totaling 160 buses to the state government affiliated mass transit companies including Oyo, Ekiti, Kogi, Kwara, Lagos states and FCT among others. 

    “All of these transport companies, affiliated with the state government received different levels of buses, some received 15, 20, 25 and 30 buses and they have started operations. 

    “In the case of pacesetters transport company, Oyo for example, we deployed 15 buses, and during the yuletide from Lagos to Ibadan they were able to bring down the prices to N3, 200 on a route that normally cost N8,000. 

    “People that were using patrol buses also experienced a discount because there was pressure on the price of transportation within the parks that they loaded which brought down the price to N6,000. 

    “These are some of the benefits that we are beginning to see from the deployment of CNG vehicles across Nigeria. 

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    “What we intend to do this year is to focus and concentrate on deployment between Lagos and Abuja and also work with the sub-nationals to fill the gaps across Nigeria,’’ he said. 

    He said that 15 of the buses were deployed for intra-state, while 60 were for inter-state. 

    According to Oluwagbemi, all the buses deployed to the various states have started operating at 50 per cent discount, with an effective monitoring system. 

    He said that the FCT residents had enjoyed 40 days free rides on the buses as part of the benefits of the administration. 

    The P-CNGi CEO said that residents of FCT were currently enjoying a 30 per cent discount on any ride following the expiration of the free ride. 

    According to him, in order to enjoy this benefit, Nigerians should get on the buses by utilising specific parks operated by these unions and get a card which monitors the number of passengers on board. 

    “Ultimately, this is the journey; it starts by us recognising that we should utilise our God’s given resources, which is natural gas, to power this economy and make sure we reduce the cost of transportation and enhance the quality of lives of Nigerians.” 

    The P-CNGi is a component of the palliative intervention of the President Bola Tinubu administration directed at providing succour to the masses, occasioned by the transitive hardships of the fuel subsidy removal policy.

  • NLC, TUC, CNG reject 50% telecom tariff hike

    NLC, TUC, CNG reject 50% telecom tariff hike

    • Labour: it is ill-timed, insensitive
    • Northern groups  demand immediate reversal
    • It’s a good take-off point, say operators
    • FCCPC to monitor compliance by service providers

    A wave of opposition grew yesterday against the 50 per cent telecommunications tariff hike approved by the Nigerian Communications Commission (NCC).

    Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and Coalition of Northern Groups (CNG) described it as insensitive.

    They said it came at a time  workers and the masses were grappling with unprecedented economic hardship.

    Labour condemned the hike, saying it was a “clear assault on workers welfare and an abandonment of the people to corporate fat cats.”

    TUC called it “one hike too many”, while CNG called for an immediate reversal.

    But telecom operators disagreed.

    They backed the 50 per cent tariff hike approved for end users of telecom services.

    Mobile network operators (MNOs) hailed the approval by the NCC, saying it was a good way to start the recovery of the ailing sector.

    MNOs had pushed for a 100 per cent tariff hike, citing soaring inflation, devaluation of the naira and fuel subsidy removal.

    NCC approved 50 per cent, balancing affordability with sustainability.

    NLC, in a statement by its President, Joe Ajaero, acknowledged the importance of telecom services in the areas of work, and access to information.

    It contended that on the average Nigerian spends around 10 per cent on accessing telecom services.

    “Telecommunication services are essential for daily communication, work, and access to information.

    “Yet, an average Nigerian worker already spends approximately 10per cent of their wages on telecom charges.

    “For a worker earning the current minimum wage of N70,000, this means an increase from N7,000 to a staggering N10,500 per month or 15per cent of his salary—a cost that is unsustainable.

    “This hike exemplifies the government’s apparent ease in prioritisng corporate profits over citizens’ welfare.

    “It is shocking that the government approved this 50 per cent tariff increase for telecom companies within a month, yet took nearly a year to approve the recent minimum wage for workers, despite the rising cost of living and inflation eroding purchasing power.

    “This glaring disparity underscores a troubling reality: the government appears more aligned with the interests of wealthy corporations than with the needs of the workers and citizens it is meant to serve.

    “We must ask: when will the government stand for the people it swore to protect?

    “When will the National Assembly rise to its responsibility and hold the executive accountable for policies that blatantly undermine the welfare of the majority? When will the common man heave a sigh of relief in Nigeria?

    “NLC is not opposed to a tariff review but disagrees with the approved rate of increase.

    “We therefore call on the government, the NCC and the National Assembly to stop the implementation of this ill-advised hike to allow a reasonable conversation around it.

    “If the dialogue agrees on the need for the hike, then, we can all seek a more humane increase and definitely not this 50 per cent hike.

    “The NLC calls on all Nigerian workers and masses to reject this unjustifiable tariff hike.

    “We urge citizens to prepare for collective action, including the possibility of a nationwide boycott of telecommunication services, to compel the reversal of this punitive increase.

    “This is for our dignity, our rights, and our survival as a people.

    “The NLC remains resolute in defending the interests of Nigerian workers and the masses.

    “We will not allow the people to bear the brunt of policies that further entrench poverty and inequality.

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    “Together, we will do our best to resist this injustice and demand that the government prioritizes the interests of its citizens over corporate interests.”

    TUC President, Comrade Festus Osifo, called for a rethink.

    He said: “This is one hike too many. The government should have a rethink on the spate of increase in essential services.”

    CNG demands reversal

    CNG rejected the hike, describing it as an assault on the already strained livelihoods of Nigerians.

    The coalition emphasised that the tariff increase, introduced amidst widespread economic hardship marked by hyperinflation, unemployment, and poverty, demonstrates a lack of consideration for the plight of the average Nigerian.

    In a statement, the National Coordinator, Comrade Jamilu Aliyu Charanchi, condemned the decision, calling it an act of insensitivity and economic injustice.

    The coalition called on Nigerians, civil society organisations, and other stakeholders to resist the tariff hike and demand its reversal.

    Charanchi said: “This decision, coming at a time when Nigerians are reeling in immense economic hardship, is nothing short of an assault on the dignity and livelihoods of the people that have been economically pauperised.

    “We are appalled by the insensitivity and lack of foresight demonstrated by the NCC and the Federal Ministry of Communications in approving such an exorbitant tariff hike.

    “The CNG observes that at a time when millions of Nigerians are struggling to make ends meet due to hyper-inflation, rising unemployment, and the pervasive effects of economic mismanagement, this decision is utterly indefensible.

    “The NCC and the ministry leadership have proven to protect their personal interests and have become insensitive to the plight of Nigerians.

    “Therefore, we call for the resignation or immediate dismissal of the Executive Vice Chairman of the NCC and the Minister of Communications for their failure to prioritise the welfare of Nigerian citizens over corporate and personal interests.”

    The CNG vowed to take all necessary legal steps to protect the rights and welfare of Nigerians.

    The group faulted the assertion that the decision followed “extensive consultations” with stakeholders, wondering who was consulted.

    It added: “Approving this hike, we contend, the NCC has jeopardised access to communication, education, healthcare, and commerce for the average Nigerian and further expanded the frontiers of the digital divide in the country.

    “We, therefore, call for the immediate suspension of the 50 per cent hike in the tariffs and recommend instead a more reasonable adjustment of a maximum of 10 per cent, which balances industry sustainability with the current economic realities in Nigeria.

    “We also demand that the NCC engage in genuine, inclusive consultations with consumer advocacy groups, civil society organisations, and other grassroots stakeholders before implementing any tariff adjustments.”

    MNOs: hike a welcome devt

    The MNOs, under the aegis of Association of Licensed Telecom Companies of Nigeria (ALTON), welcomed the development, saying the recovery of the distressed telecom sector would now begin.

    Chairman of the ALTON, Gbenga Adebayo, in a telephone conversation, hailed the decision of the NCC, describing the 50 per cent “as a good way to begin”.

    Also, the Chief Executive Officer of Airtel Nigeria, Mr. Dinesh Balsingh, expressed the company’s appreciation of the decision to allow for a tariff increase.

    According to him, the development underscores the regulator’s commitment to fostering sustainability and enhancing investment in the telecommunications industry for superior service delivery.

    He said: “The tariff adjustment reflects a balanced approach to ensuring the sustainability of the telecommunications sector while safeguarding the interests of consumers.

    “The price increase, which was highly needed for the survival and continued growth of the industry, will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers.

    “We are confident that this development will pave the way for even greater advancements in telecommunications services across the country.

    “Our focus remains on providing exceptional customer satisfaction while contributing to the long-term sustainability of the industry.”

    FCCPC cautions operators

    The Federal Competition and Consumer Protection Commission (FCCPC) advised telecom consumers to report any unfair practices or concerns through its official channels to ensure effective resolution.

    In a statement by Director, Corporate Affairs, Ondaje Ijagwu, it expects that tariff adjustments will “directly translate into demonstrable and tangible service enhancements for consumers”.

    It vowed to monitor the impact of the tariff adjustments to ensure compliance with established regulatory standards.

    The statement reads: “The FCCPC acknowledges the intense pressure faced by the NCC over the years to approve tariff increases due to the rising operational costs experienced by telecom operators, which became more pronounced in recent times.

    “It is non-negotiable that telecom operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment.

    “The rationale for the increase must be reflected in better services for consumers who rely on telecommunications for both personal and business purposes.

    “Operators are expected to allocate increased revenues responsibly, with an emphasis on infrastructure development and service delivery improvements.

    “Clear mechanisms must be established to monitor how these funds are utilised, ensuring that consumers directly benefit from the adjustments.

    “Operators must also clearly communicate the rationale for the tariff adjustments to consumers.

    “This includes ensuring that consumers are fully informed about the nature of the changes, their benefits, and how they align with efforts to improve service delivery and infrastructure.

    “We are also pleased with the NCC’s directive to operators to ensure that, henceforth, tariffs are clear, straightforward, and free of hidden charges or complexities.”

  • CNG progress

    CNG progress

    • Implementation of the game-changing policy should be sustained 

    From just seven last year, the number of centres for the conversion of vehicles from use of petrol and diesel to Compressed Natural Gas (CNG) in Nigeria has increased to 158 in 2024. This update on the progress of the CNG policy came from the Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG), Michael Oluwagbemi, at the 13th Practical Nigerian Content Forum in Bayelsa State.

    The over 2000 percent surge in the number of these centres indicates diligent pursuit of the Federal Government’s policy of promoting the use of considerably cheaper CNG to power vehicles following the phenomenal increase in the price of Premium Motor Spirit (PMS) as a result of the removal last year of the unsustainable fuel subsidy by the President Bola Tinubu administration. However, only a minuscule number of vehicles has so far been covered by this initiative and there is still a long way to go to actualise its immense potential.

    The Pi-CNG deserves commendation for its well-articulated plans to comprehensively expand the substitution of gas with petrol and diesel to fuel vehicles in the country. Towards this end, for instance, it aims to increase the number of conversion centres to 1,000 to meet envisaged growing demand.

    Also, it was reported to have secured ten hectares of land to establish a CNG manufacturing hub in Ajaokuta, Kogi State. This is to facilitate the local manufacture of key components of the CNG kit such as flexible pipes, filters, valves and the Electrical Control Unit which is to be developed through reverse engineering. A further goal is the establishment of assembly plants to produce fully CNG-powered vehicles in the country.

    Apart from providing a cheaper alternative for vehicular transportation, the CNG project thus has tremendous potential to create jobs. It is expected to create employment opportunities for mechanics and other skilled artisans to undertake the conversion of vehicles from use of petrol and diesel to gas and their maintenance. The local CNG vehicles assembly plants will also stimulate job creation. This will also entail technology transfer in this field that will boost local expertise while also enhancing domestic economic productivity.

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    However, a major obstacle to be scaled in fully actualising the potential of the CNG project in Nigeria is the high costs associated with different aspects of the initiative. According to Oluwagbemi, “The conversion cost, including costs and services, is approximately N1 million per vehicle. With a target of converting five million vehicles, this represents a N5 trillion market opportunity.”

    In addition to conversion of private vehicles, the Pi-CNG plans to convert 500,000 commercial vehicles from petrol and diesel to gas. Given the cost implications and the current economic hardship, the conversion of both private and commercial vehicles will require well- designed loan schemes with affordable repayment rates to assist potential beneficiaries.

    To mitigate the cost of setting up a CNG refuelling station, which is estimated at about $600,000, the Pi-CNG is introducing composite refuelling units patterned after technologies in India which not only offer faster refuelling capabilities but pair refuelling units with compression facilities to reduce costs.

    The ongoing collaboration of the Pi-CNG with diverse bodies such as the Nigerian Content Development and Monitoring Board (NCDMB), Nigerian Institute of Transport Technology (NITT), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Bank of Industry (BOI) to actualise its objectives is essential and must be sustained.

    The example of India, which has one of the largest CNG networks in the world with thousands of CNG filling stations and millions of functional CNG vehicles, shows that it is an attainable goal.

    With considerable proven gas reserves of c.200.53 trillion cubic feet, Nigeria can achieve an alternative to petrol and diesel that will not only guarantee cheaper energy  but also mitigate the damaging effects of climate change, global warming and extreme weather events.