The Nigerian Association of Road Transport Owners has said its partnership with the Presidential Initiative on Compressed Natural Gas has helped reduce transportation costs by over 30 per cent while expanding its fleet and strengthening mass transit operations across the country.
Speaking at the association’s 2026 Annual General Meeting in Abuja, the National President, Yusuf Othman, said the collaboration had opened up new opportunities for operators despite the prevailing economic challenges in the transport sector.
According to a statement issued by the association on Wednesday, Othman disclosed that NARTO had received and deployed several new vehicles under the CNG programme to boost its operational capacity and support safer and more affordable transportation.
He said, “Our partnership with the Presidential Initiative on Compressed Natural Gas has brought enormous opportunities to the association. Notably, we successfully received and deployed new fleets to strengthen our transport capacity. These include 20 units of 14-seater CNG/petrol buses, five units of 56-seater hybrid CNG/diesel buses, and three units of 46-seater CNG/diesel engine buses.
“These vehicles are currently deployed for interstate and intracity shuttle services across the country, contributing meaningfully to safer, cleaner, and more affordable mass transportation, as well as reducing transportation costs by over 30 per cent. I am glad to inform this distinguished gathering that we have also received assurances from PiCNG that additional buses will soon be allocated to our association.”
He described the AGM as an opportunity to review the association’s performance in 2025 and chart a realistic path forward.
Othman commended President Bola Tinubu for his support for the transport sector, particularly through the CNG initiative and ongoing road rehabilitation and construction across the country.
“As direct beneficiaries of these projects, we express our profound gratitude to the President for the remarkable strides recorded in road construction and rehabilitation nationwide,” he said, urging members and road users to comply with traffic regulations and axle load limits to preserve the nation’s road infrastructure.
The NARTO president also lauded the investment drive of the Dangote Group, especially the development of the Dangote Refinery and the deployment of thousands of trucks to support petroleum distribution.
According to him, the initiative would boost local refining, improve product availability and generate employment opportunities.
He equally praised the regulatory oversight of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, expressing hope that the agency would continue to ensure fair pricing mechanisms to sustain petroleum transportation.
On security, Othman disclosed that the association had strengthened collaboration with several agencies, including the Office of the National Security Adviser, the Nigeria Police Force, the Department of State Services, the NDLEA, and the Federal Road Safety Corps, among others, to tackle crime and insecurity on highways.
He said operational frameworks for these partnerships were being finalised and pilot implementation would soon begin.
Othman added that NARTO maintained productive engagements with stakeholders such as the Major Energies Marketers Association of Nigeria, DAPPMAN, NUPENG, and the Nigeria Labour Congress, while strengthening ties with the IPMAN and other transport unions.
He revealed that the association had also reached an understanding with the Lagos State Government to finance and acquire new trucks through a fleet replacement programme.
When implemented, the initiative would help members replace ageing vehicles and improve operational efficiency.
Despite the progress, Othman noted that the industry still faced major challenges, including declining revenues due to the refusal of oil marketers to review freight rates, ageing fleets, limited access to low-interest financing, poor road infrastructure, insecurity and persistent harassment of drivers.
He appealed to the government to accelerate ongoing road projects, especially ahead of the rainy season.
The NARTO president also expressed concern over tanker explosions and road accidents, which he said had caused significant loss of lives and property.
“We will continue to prioritise safety through sustained sensitisation, advocacy and training of drivers. We also urge governments at all levels to intensify public enlightenment on the dangers of fuel scooping during tanker accidents,” he said.
He pledged to consolidate the association’s gains in the remaining years of his tenure, secure additional CNG vehicles and push for improved freight rates to ensure the sustainability of transport operations.
“As we move into the remaining two years of my tenure as National President, I reaffirm my unwavering commitment to consolidating our gains and making further progress that will uplift the association and improve the welfare of our members. Efforts are ongoing to secure additional vehicles from PiCNG to expand mass transit operations nationwide.
“We are also intensifying engagements to secure favourable funding arrangements that will enable members to acquire new trucks or replace obsolete fleets. In addition, we shall continue to mount sustained pressure on oil marketers and relevant stakeholders to review freight rates in order to improve profitability and ensure the long-term sustainability of transport operations,” the statement concluded.
Nigeria has witnessed sharp increases in transport fares since the removal of fuel subsidies by President Bola Tinubu in 2023, a reform that pushed pump prices to market-reflective levels and significantly raised the cost of logistics and distribution nationwide.
The Federal Government subsequently launched the CNG initiative to cushion the impact on transporters and commuters by promoting cheaper and cleaner alternative fuels.
The CNG initiative is a key part of Nigeria’s broader energy transition strategy aimed at reducing dependence on petrol, lowering emissions and cutting the cost of transportation in a country with over 200 million people and one of Africa’s largest natural gas reserves.
Transportation accounts for a significant share of household expenditure, making cost reductions in the sector critical to inflation control and economic stability.
