‘CNG to reduce operating cost by 70%’

Programme Director/CEO, Presidential Initiative on Compressed Natural Gas (PCNGI) PCNGI, Michael Oluwagbemi, has indicated that Compressed Natural Gas (CNG) would reduce the cost of fueling for cab drivers in Nigeria by about 70 per cent. He made this known at the launch of the Rideshare CNG conversion incentive programme and MYCNG APP, at the Portland/NASENI Centre in Abuja.

The launch was part of the PCNGI move to significantly lower the fare charged by E-hailing taxis with a 50 per cent conversion discount to CNG. The global ride-hailing market was valued at about $130 billion as of 2020, and is expected to hit $230 billion by 2026, recording about 8.75 per cent growth between 2021 and 2026.

In 2020, revenues generated in Africa alone from the ride-share industry were about $2.5 billion. Oluwagbemi highlighted the significance of e-hailing taxi service in the economy, disclosing that in 2020, the sector generated $290 million in revenue, with seven million people using the service.

“Indeed, we know that transportation is responsible for about 14 to 15 per cent of an average family’s spending. It contributes about 1.5 per cent to the overall economy, with an average of 5.1 per cent growth on a year-to-year basis.”

The CEO also pointed out that in Nigeria, the vehicle-to-population ratio is about 60 vehicles to 1,000 people, with 41.1per cent of the about 12 million vehicles in Nigeria being privately owned, and ownership concentrated in the urban areas.

This means that the real opportunity for moving people around in an environment where there is no vehicle ownership is this ride-share technology that has become available across the land in the last 10 years,” he added.

Oluwagbemi explained that the use of CNG would reduce the cost of fueling for cab drivers by about 70 per cent, significantly lowering their cost of operation and fare for passengers.He added that the MYCNG APP is a one-stop solution for convenient and eco-friendly fueling options.

The Minister for Information and National Orientation counterpart, represented by Dr Mohammed Bulama, lauded the PCNGI. “I commend (PCNGI) for boldly and committedly championing the cause of CNG, in line with President Bola Tinubu’s vision for the industrial transformation of Nigeria,” he said.

In the same vein, the Minister of State for Petroleum Resources (Gas), Ekperipe Ekpo described the ride-share sector as a vital part of Nigeria’s urban transportation system, adding that the CNG would allow the country to make use of its abundant natural gas reserves as a key player in the global energy landscape.

In his remarks, the Executive Vice Chairman/CEO of the National Agency for Science and Engineering Infrastructure (NASENI), Khalil Suleiman Halilu, emphasised the significance of Pi-CNG in Nigeria’s gas revolution, noting that the Initiative has quickly become central to discussions on the nation’s energy future.

The Conversion Incentive Programme, aimed at the rideshare sector, including Uber and Bolt drivers, offers a 50 per cent discount to drivers who sign up and use the newly launched MY-CNG App.