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Nearly pedestal-free optical pulse compression using self-similar chirped optical solitons near the photonic bandgap (PBG) structure of nonlinear fiber Bragg gratings (NFBGs) with exponentially decreasing dispersion is investigated using the generalized nonlinear coupled-mode equations (NLCMEs). The full dispersion characteristics and the effect of PBG are included. We find that the ratio of the frequency detune of the pulse's center frequency from the Bragg frequency of the NFBG to coupling coefficient of the NFBG is an important design parameter of the NFBG optical pulse compressor. We carried out a comprehensive study on the effect of the ratio of frequency detune to coupling coefficient, grating length, initial chirp, initial dispersion, and initial pulsewidth on the self-similar optical pulse compression. We also studied the compression of both the hyperbolic secant and Gaussian-shaped pulses and the effect of variation in the initial pulsewidth on the optical pulse compression.