NARTO, PiCNG partner to cut transportation costs
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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 has opened new opportunities for operators despite economic challenges in the transport sector.
“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,” Othman said.
“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.”
Othman commended President Bola Tinubu for his support of the transport sector, particularly through the CNG initiative and ongoing road rehabilitation and construction projects nationwide.
“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 compliance 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, particularly the development of the Dangote Refinery and the deployment of thousands of trucks to support petroleum distribution. According to him, the initiative will boost local refining, improve product availability, and generate employment opportunities.
On regulatory oversight, Othman praised the Nigerian Midstream and Downstream Petroleum Regulatory Authority, expressing hope that the agency will continue to ensure fair pricing mechanisms to sustain petroleum transportation.
Addressing security concerns, he said NARTO had strengthened collaboration with 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, to tackle highway crime and insecurity. Pilot implementation of operational frameworks for these partnerships is expected to begin soon.
The association has also engaged stakeholders such as the Major Energies Marketers Association of Nigeria, DAPPMAN, NUPENG, and the Nigeria Labour Congress, while strengthening ties with IPMAN and other transport unions.
Othman disclosed that NARTO had reached an understanding with the Lagos State Government to finance and acquire new trucks through a fleet replacement programme, which will help members replace ageing vehicles and improve operational efficiency.
Despite progress, the sector faces challenges, including declining revenues due to stagnant freight rates, ageing fleets, limited access to low-interest financing, poor road infrastructure, insecurity, and harassment of drivers. He also raised concerns over tanker explosions and road accidents, which have 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,” Othman said.
Looking ahead, he pledged to consolidate the association’s gains, 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.
The development comes amid rising transport fares since the removal of fuel subsidies in 2023, which pushed pump prices to market-reflective levels and increased logistics costs nationwide.
The Federal Government’s CNG initiative aims to cushion transporters and commuters by promoting cheaper, cleaner alternative fuels, supporting Nigeria’s broader energy transition strategy, reducing emissions, and lowering transportation costs.
Transportation remains a significant share of household expenditure, making cost reductions in the sector critical for inflation control and overall economic stability.
