3 months ago
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The Federal Government is targeting the e-hailing market to expand the conversion of cars from premium motor spirit to compressed natural gas (CNG)-powered.
This comes as long queues persist in Abuja and Lagos yesterday, with motorists spending productive hours of their day at fuel pumps.
Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, said the e-hailing arrangement is aimed at transforming the rideshare sector by promoting the adoption of CNG as an alternative fuel.
Speaking at the launch of the RideShare CNG Conversion Incentive Programme and My CNG App, Ekpo emphasised Nigeria’s abundant natural gas reserves and the need to leverage the resources for the benefit of the people.
“Our mission is not just to harness this resource for economic gain but to ensure that its benefits are felt by every Nigerian, especially in ways that directly impact their daily lives,” he stated.
The programme offers a 50 per cent discount to rideshare drivers who sign up and schedule conversions through the My CNG App, making CNG a more viable and cost-effective option.
Ekpo said the initiative is seen as a response to the rising costs of traditional fuels, which have posed challenges for both drivers and passengers.
The minister highlighted the environmental benefits of CNG, noting that its adoption aligned with Nigeria’s national objectives to reduce carbon emissions and contribute to global climate change efforts. He also encouraged rideshare drivers to embrace this opportunity, not only to save costs but to contribute to national development.
Programme Director and Chief Executive Officer of the Presidential CNG initiative (P-CNGi), Michael Oluwagbemi, who noted that transportation accounted for 15 per cent of average family spending, said Nigerians now spend more on fuel to move around.
Lamenting that Nigeria’s vehicle population ratio is about 160 vehicles to one thousand people, Oluwagbami said the value of e-hailing is rising to $220 billion in 2026 but the revenue from the sector in Africa stood at $2.5 billion in 2020.
According to him, about seven million Nigerians across major cities are adopting rideshare which may grow exponentially in the coming years.
He noted that CNG is not just about transforming transportation but about transforming Nigeria, adding that it was the first time in a long while that the country is utilizing the resources God has blessed us with for the advantage of the masses.
Executive Vice Chairman of the National Agency of Science and Engineering Infrastructure (NASENI), Khalid Halilu, in his speech, described the launch of the scheme as a milestone achievement in the deployment of technology to boost CNG utilisation as vehicular fuel in Nigeria. He commended partners, P-CNGi, Portland Gas and Dana Motors for their faith and commitment to the project.
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