The Federal Government, through the Presidential Compressed Natural Gas Initiative (P-CNGi), has secured a $50 million deal to convert commercial vehicles to run on Compressed Natural Gas (CNG).
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Michael Oluwagbemi, the Programme Director/Chief Executive of P-CNGi, announced the deal during a televised program.
He highlighted that this private sector initiative would establish CNG conversion workshop infrastructure nationwide.
The initiative, part of President Bola Tinubu’s administration’s efforts to ease the removal of fuel subsidies, allocated ₦100 billion to purchase 5,500 CNG vehicles, 100 electric buses, and over 20,000 CNG conversion kits.
Oluwagbemi also revealed plans for a targeted conversion incentive program for the mass transit sector in collaboration with transportation unions.
The first phase of the initiative aims to establish 100 conversion workshops and 60 refueling sites across 18 states by the end of 2024.
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Photo via Carmart.ng
Oluwagbemi emphasized CNG’s safety compared to petrol and diesel, highlighting its high auto-ignition temperature and safety regulations by the Standards Organisation of Nigeria (SON).
Dr. Mohammed Bawa, Group Managing Director of ABG Group, praised the government’s initiative, noting the private sector’s growing interest in the CNG space.
He revealed plans for more CNG refueling centers in Abuja, aiming to make CNG vehicles more accessible.
The deployment of CNG vehicles is expected to alleviate transport costs and reduce air pollution, aligning with global climate goals.
Despite initial conversion costs, the shift towards CNG promises long-term benefits for both the economy and the environment.
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