Lagos, June 2, 2025 – The adoption of Compressed Natural Gas (CNG) by the Nigerian Railway Corporation (NRC) will reduce the corporation’s running cost by 60% to 70%.
Kayode Opeifa, the Chief Executive of the NRC, said this this in Lagos while signing a Memorandum of Understanding (MoU) to integrate Compressed Natural Gas (CNG) into railway operations.
The MoU was signed with the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
The NRC boss said the adoption of CNG by the diesel-powered locomotives would help to cut maintenance costs by up to 60% to 70% and save the corporation as much as N100 million monthly.
He said the adoption of CNG would also significantly reduce carbon emission and curb inflation by cutting down transport costs.
Opeifa also said the adoption of CNG would stimulate economic growth by creating jobs and attracting investments in infrastructure and technology.
He described the deal as a critical leap toward a sustainable future for the transport sector.
The NRC boss explained that the MoU will cover four key areas – converting locomotives and generators to CNG, training conversion technicians, distributing CNG-powered tricycles and kits nationwide, and deploying CNG buses for last-mile connections to boost intermodal transport.
Michael Oluwagbemi, the Project Director of the Presidential Initiative on CNG (Pi-CNG), said the initiative had generated over $500 million in investments and 25,000 jobs.
He also said the number of CNG-powered vehicles in Nigeria had more than doubled to over 100,000.
During the ceremony, the Pi-CNG donated a CNG-powered bus and branded NRC coaches to promote awareness.
