The Federal Government of Nigeria officially launched the Presidential Compressed Natural Gas Initiative (PCNGI) on Friday, in a move to reduce the cost of transportation and promote environmental sustainability and economic growth.
This initiative, which comes as a response to the demands of organized labor unions, aims to provide affordable energy options to Nigerians, reducing the nation’s reliance on traditional fuels.
The ceremony, held at the State House in Abuja, saw the Chief of Staff to the President, Femi Gbajibiamila, flagging off the PCNGI.
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In a symbolic handover of CNG buses to the State House, Zacch Adedeji, Chairman of the Presidential CNG Initiative Steering Committee, announced key measures to support the adoption of CNG vehicles.
Mr. Farouk Ahmed, the Chief Executive Officer of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), represented Adedeji at the event. Ahmed revealed that the government had waived the Value Added Tax (VAT) on the purchase of CNG buses and was actively seeking duty waivers for the entire value chain. He emphasized the goal of building a sustainable future by leveraging Nigeria’s abundant, cheap, and clean energy source – natural gas.
Adedeji also disclosed the government’s plans to establish multiple conversion centers across the country within the next two weeks, further promoting the adoption of CNG vehicles nationwide. He urged Nigerians to view the CNG buses as symbols of a new beginning and an integral part of President Bola Tinubu’s commitment to environmental sustainability and economic growth.
Engr. Micheal Oluwagbemi, the Project Director of the Presidential CNG Initiative, stated that several state governments had already expressed interest in investing in CNG buses. Notably, the Rivers State Government had already acquired a substantial number of CNG buses to address transportation challenges within the state.
Addressing concerns about the cost of conversion to CNG, Oluwagbemi explained that the expense varies depending on the vehicle model and type. However, he assured Nigerians that, as part of the PCNGI, the committee would incentivize the conversion process, making it more affordable for the general populace.
Chinedu Oguegbu, Managing Director of OMAA Motors and managing partner of PCNGI, lauded the federal government’s patronage of made-in-Nigeria vehicles, emphasizing that it is a pivotal step towards deepening industrialization and promoting the use of cleaner energy sources.
The major aim of the CNG initiative is to provide affordable transport means for the Nigerian masses, following a more than 250% increase in transport fares triggered by the fuel subsidy removal.
The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) suspended their planned industrial action early this month, after reaching an agreement with the federal government that the CNG and other initiatives contained in their demands will be met.
However, while stakeholders applaud the launch of the scheme, they also emphasized that a lot of work is yet to be done to establish conversion centers across the country.