Jubilation as 30,000 commercial buses set for CNG conversion

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The federal government, under the Presidential Compressed Natural Gas Initiative (P-CNGi), plans to allocate around N45 billion over the next 90 days to convert 30,000 commercial transport vehicles for free.

Following the initial Park-to-Park CNG conversion rally in Kaduna, where 100 conversion kits were provided at no cost to commercial transport workers, an additional 150 kits have been distributed to members of transport unions in Lagos.

The initiative introduced by President Bola Tinubu is designed to alleviate the financial strain on the public. Photo credit - Bola Ahmed Tinubu, Bayo Onanuga
Source: Twitter

FG targets 250,000 vehicles' conversion annually

At an event at Biode Motor Park in Ojota, attended by transport union members from the six South-west states, 14 CNG conversion companies signed agreements with the P-CNGi management to offer conversion services throughout the region.

The presidential initiative aims to convert 250,000 commercial vehicles annually, with partners in various states.

The estimated cost for each conversion is around N1.5 million, and using CNG is approximately N230 per kilogram, which is over N500 per litre cheaper than petrol.

Nigerians to benefit from lower fuel costs

At the Lagos rally, Mr. Michael Oluwagbemi, Programme Director and CEO of the Presidential CNG Initiative, revealed that the government has procured over 30,000 CNG conversion kits for nationwide distribution within the next 90 days.

He explained that this initiative, introduced by President Bola Tinubu, is designed to alleviate the financial strain on the public.

Oluwagbemi added that the program aims to expand beyond the initial 30,000 kits to reach a total of one million.

He noted that with the adoption of CNG, Nigerians will benefit from lower fuel costs compared to petrol, which is priced between N750 and N850 per litre, leveraging the country's substantial gas reserves.

Oluwagbemi noted:

“We’ve bought over 30,000 conversion kits ready for distribution in the next 90 days.“This will ensure that commercial transport workers are able to benefit directly from the palliative of the federal government of Nigeria.“We are signing agreements with the 14 conversion workshops and our target is to set up 1,000 of such workshops."

He mentioned that the entire country would soon embrace the CNG initiative, highlighting its environmental benefits and its potential to lower food prices.

Source: Legit.ng