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Tag: CNG

  • CNG: Enugu govt creates new ministry

    CNG: Enugu govt creates new ministry

    The Enugu State Government has begun the process of transitioning from the Premium Motor Spirit (PMS) to the Compressed Natural Gas (CNG) to reduce cost of transportation for commuters.

    The Commissioner for Transport, Dr Obi Ozor made the disclosure while briefing journalists on the outcome of the State Executive Council meeting in Enugu on Friday.

    According to him, the state Executive Council resolved that it is very important for the state and her citizens to begin the process of transitioning from petrol to CNG.

    He explained that the CNG saved about half of the cost of fueling and transportation as well as helping the operators within the transport sector and reduces the cost of transportation.

    He disclosed that the government was going to invest more in buying buses and also supporting the private sector to invest in the transport space in the state.

    ”All these are geared towards bringing safe, affordable and sustainable transportation system in Enugu State.

    “With CNG, the state is creating an enabling environment to attract the right investors and has engaged in partnership with Greenville Energy,” he added.

    He, however, urged those interested in the conversion of their vehicles from petrol to CNG to come to the ministry of transport to be registered, stressing that they would work with the Federal Ministry of Transport to get the CNG kits.

    The government also approved transitional Energy process from Premium Motor Spirit (PMS) to Compressed Natural Gas(CNG) for transport in the state.

    Also speaking, Prof. Chidiebere Onyia, Secretary to the State Government, announced that the state government has created a new Ministry of Energy and Mineral Resources to regulate investment in the sector.

    Onyia said Gov. Peter Mbah had earlier signed the Enugu State Electricity Law and that the law required an independent regulator to be set up.

    This, he said, needed a supervisory ministry that would handle all engagements in the energy space and in the mineral resource, considering the level of mineral resources availability in Enugu State.

    He said, ”Government has decided at the Exco meeting today to create Energy and Mineral Resources ministry whose mandate includes the oversight of most of our investment opportunities within the solid mineral space.

    “This will also help to catalyze investments in the renewable energy space and in our coal to power space.

    “Exco resolved that this new ministry will take effect immediately and we will start the process of setting up the office,” Onyia said.

    He added that budgetary allocation had been set up when the regulator was set up, saying they were doing structural things for now.

    “The appointments will now be the next step of what His Excellency will direct. For now, we are trying to make sure that we create the opportunities by creating offices, right people and the needed workforce.

    “Because this is a highly technical ministry, we are going to make sure all these things are in place while the Honorable Commissioner for Transport will superintend over it.

    On the difference between the ministry of Energy, Mining and Environment, he said they were different and play different roles.

    “One plays a role that complements the other one. So, with the ministry of Energy, we are looking across the board different sources of energy to energy, power, gas to power and coal to power. All these things have environmental component,” Onyia said.

    He added that the action of government was tailored towards reducing carbon footprint, stressing that the two ministries would complement each each other rather than duplicating roles.

  • FG announces free conversion of diesel powered vehicles to CNG

    FG announces free conversion of diesel powered vehicles to CNG

    The Federal Government has announced that the conversion of petrol and diesel-powered commercial vehicles to run on Compressed Natural Gas (CNG) will be free of charge. This initiative was declared in Abuja after signing agreements with various companies involved in the conversion process.

     

    Michael Oluwagbemi, the Programme Director/Chief Executive of the Presidential Compressed Natural Gas Initiative (P-CNGI), shared this update with journalists. He explained that commercial transporters under unions like the Road Transport Employers Association of Nigeria (RTEAN), the National Union of Road Transport Workers (NURTW), and the Nigerian Association of Road Transport Owners (NARTO) would benefit from the program.

     

    Oluwagbemi stated, “Today we’ve just signed with five partners here in the Federal Capital Territory participating in the Conversion Incentive Programme. The programme addresses the cost barrier for Nigerian commercial transport operators converting from petrol to gas. These operators have found the conversion costs to be expensive, so we are providing the kits and installation for free through certified conversion workshops. We’ve identified 123 workshops so far, with five here in Abuja.”

     

    The second group to benefit includes ride-share operators. “If you are a ride-share driver with platforms like Uber, Bolt, Lag-Ride, or Move, you can also benefit. Bolt has already signed, and Lag-Ride is on board. These operators will receive a 50 percent discount on the conversion equipment, and installation will be free. Payment can be made incrementally, without any upfront cost,” Oluwagbemi noted.

     

    He emphasized that this initiative would reduce transportation costs for Nigerians. “We have over 20,000 kits available in the next three months, distributed across 25 states with some CNG capacity. These kits are part of last year’s budgeted palliative initiative, with additional funding from the National Assembly for further distribution later this year.”

     

    Regarding the agreements signed, Oluwagbemi mentioned, “In return for the free kits, transport operators must pass on the savings to Nigerians. We have a robust monitoring system to ensure proper conversion and enforce reduced pricing. The Nigerian gas vehicle monitoring system will track conversions and ensure savings are passed on to the public.”

     

    This initiative aims to make transportation more affordable for Nigerians through the widespread adoption of CNG-powered vehicles.

  • FG crashes price of cooking gas

    FG crashes price of cooking gas

    The price of liquefied petroleum gas,  (LNG) popularly known as cooking gas, appears to be crashing.

    Findings show that the average cost of 1 kilogramme of cooking gas has crashed to  N1,000 or below, depending on the location and the seller.

    It was gathered that between February and March, the price of LPG rose to around N1,300 and above in some locations.

    Moreso, in February, the National Bureau of Statistics (NBS) said the price of 12.5kg of LPG increased by 46.88 per cent in one year.

    According to NBS, the average price for refilling a 12.5kg cylinder of cooking gas in February increased to N15,060.38, compared to N10,253.39 in February 2023.

    The NBS also noted that the average retail price for refilling a 12.5kg cylinder of LPG went up by 28.33 per cent in a month — from N11,735.72 in January 2024 to N15,060.38 in February 2024.

    Reacting to the latest development, the Minister of Petroleum Resources, Ekperikpe Ekpo, said the reduction in the price of LPG  was a result of the efforts being made by the Federal Government, through the Ministry of Petroleum Resources (Gas) with the full support of relevant regulatory agencies in the sector and even operators to increase the volume of domestically produced cooking gas coming into the local market.

    According to him, this has forced the price to come down, saying more effort are still in place to ensure further reduction in price of cooking gas.

    The FG is poise on crashing the price of LPG as well as maintain the current price of CNG in the country.

  • FG to roll out 5,000 CNG-powered tricycles over the next three month

    FG to roll out 5,000 CNG-powered tricycles over the next three month

    In its effort to improve the usage of Compressed Natural Gas  in the country,  the Federal Government has put plans up to roll out 5,000 CNG-powered tricycles over the next three months.

    Michael Oluwagbemi,  the Programme Director and Chief Executive, P-CNGi, made this known on Thursday at the inauguration of the Luojia Tricycle Assembly plant in Ogun State.

    The government has continued to galvanise resources towards a mass adoption of CNG in the country.

    According to him, the FG has introduced several incentives, including Value Added Tax exemptions and Custom duty waivers for CNG-powered tricycles and other vehicles entering the country.

    The government, he said, had also mandated all Ministries, Departments, and Agencies to purchase only CNG-powered vehicles moving forward.

    The, move, according to programme director, will drive the adoption of cleaner energy solutions across the country.

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority is providing CNG at a concessionary price, offering more than a 40 per cent discount on the current price.

  • FEC orders MDAs to stop purchasing petrol-powered vehicles

    FEC orders MDAs to stop purchasing petrol-powered vehicles

    The Federal Executive Council has directed that all new vehicles, generators or tricycles procured by government and its agencies must be powered by Compressed Natural Gas (CNG), solar or electric.

    This is in line with the administration’s commitment to ensure energy security, drive utility and cut high fuel cost in the country.

    The council, chaired by President Bola Tinubu, at the State House on Monday, reiterated that there was no turning back in the energy reforms initiated by the administration.

    It also ordered all government ministries, departments and agencies to henceforth procure only compressed-natural-gas-powered vehicles.

    “The President’s directive is also in furtherance of Nigeria’s effort to transit to cleaner energy as CNG-enabled vehicles have been adjudged to produce lower emissions, even as they present a more affordable alternative for Nigerian energy consumers.

    “This nation will not progress if we continue to dance on the same spot. We have the will to drive the implementation of CNG adoption across the country, and we must set the example as public officials in leading the way to that prosperous future that we are working to achieve for our people.

    “It starts with us, and in seeing that we are serious, Nigerians will follow our lead,” presidential spokesman Ajuri Ngelale had said in a statement.

    He said this was line with the President’s commitment to effectively harnessing the nation’s gas potential, alleviating the burden of high transportation costs on the masses while enhancing the standard of living of all Nigerians.

    Affected by the order, according to sources, are new requests by Nigeria Customs Service and the Shipper’s Council, an agency of the Ministry of Marine and Blue Economy which had sought approval to buy several hundreds of operational vehicles to be powered by petrol.

    The council approved the requests but said they must be CNG vehicles.

    The Tinubu administration, which launched the Presidential Compressed Natural Gas Initiative (PCNGi) in October 2023, plans to roll out about 800 CNG buses, 4,000 CNG tricycles and 100 electric buses in the first phase in the next few weeks.

    “Government believes its policy will unlock new investments in renewable energy, solar panels and lithium batteries.

    “It also believes that the policy will be climate friendly and reduce inflation as it will slash costs by about 60 per cent,” the source said.

  • FG attracts $50m investment for conversion of commercial buses to CNG

    FG attracts $50m investment for conversion of commercial buses to CNG

    The Federal Government through the Presidential Compressed Natural Gas Initiative (P-CNGi) has attracted a 50 million dollar deal for the conversion of commercial vehicles to run on Compressed Natural Gas (CNG).

    The P-CNGi Programme Director/Chief Executive, Mr Michael Oluwagbemi, said this on Saturday during a Live programme on television tagged ‘’Compressed Natural Gas Roll Out: Prospects for Economic Growth.”

    Oluwagbemi said the deal which was a private sector initiative would enable the construction of CNG conversion workshop infrastructure across the country.

    P-CNGi is a component of President Bola Tinubu administration’s palliative directed at providing succour to the masses, following the removal of fuel subsidy.

    To alleviate the burden of rising fuel prices, the Federal Government allocated N100 billion from the N500 billion palliative budget to buy 5,500 CNG vehicles (buses and tricycles), 100 electric buses, and over 20,000 CNG conversion kits.

    “We will be announcing on May 29, targeted conversion incentive programme for the mass transit sector.

    “We are working with our partners in the mass transit sector, including the National Union of Road Transport Workers (NURTW) and the National Association of Road Transport Owners (NARTO), to determine modalities for providing the equipment and incentive,” he said.

    He said the first phase of the initiative would roll out 100 conversion workshops and 60 refuelling sites across 18 states in Nigeria before the end of 2024.

    “We are very well on track to meet all our objectives this year with respect to conversion centres, we are beginning to see the private sector jump in; as at Friday 85, conversion centre bidders were about to be completed.

    “We expect 15 more to get started before the end of May, we will hit 100 targets before the end of 2024. The private sector leads and the government supports, it is definitely a good news for Nigeria.

    “CNG is much safer in natural condition than PMS and Diesel, with bullet-proof container and high auto ignition temperature, almost one thousand degrees safer in natural condition than petrol,” he said.

    In terms of reliability, he said it had regulations and standard developed by the Standards Organisation of Nigeria (SON).

    He said a Nigerian gas vehicle monitoring system was also being established to ensure safety of operation from the point of conversion to the point of refuelling.

    He said the National Automotive Design and Development Council (NADDC) and other agencies were also involved in promoting the initiative.

    “Throughout the country we are rolling out conversion centres, we will be able to provide it at a subsidised cost and significant discount while allowing them to pay back slowly.

    “For us as a government, it is not really subsidy, rather utilisation fund,” he said.

    Also speaking, Dr Mohammed Bawa, Group Managing Director, ABG Group, said the Group had a partnership with banks to assist anyone willing to convert his or her vehicle.

    He said since the initial investment was on the high side, the Group could recommend for the bank to pay on behalf of anyone interested, while the person would repay over a period of time without interest.

    “Nigerians are entrepreneurial by nature and always want an enabling environment and support by government.

    “This government has taken the bull by the horn by putting in place the P-CNGi, which is doing a great job; automatically the private sector is already keying in.

    “Not less than 20 private sector players have keyed into the CNG space and value chain, from conversion to refuelling. Now that the atmosphere is inviting, you will see many Nigerians investing in it,” he said.

    He further said before the end of May 2024, based on reliable information from the private sector, there would be at least six CNG refuelling centres in Abuja, as against only two stations currently.

    Fuel subsidy removal caused an increase in transport fare, but the deployment of CNG vehicles will reduce reliance on petrol and diesel thereby making transportation affordable and mitigate air pollution which aligns with the Paris Climate Accord.

    Conversion of vehicles costs between N700, 000 and N800, 000, and vehicles can also operate on the energy mix of petrol and CNG after conversion safely.

  • Presidential CNG initiative set for May rollout

    Presidential CNG initiative set for May rollout

    The Presidential Compressed Natural Gas Initiative (PCNGI) is set for initial rollout to the public by the end of May, a presidential aide has revealed.

    Mr Bayo Onanuga, Special Adviser to the President on Information and Strategy, announced this in a statement on Sunday in Abuja.

    The initiative is part of the palliatives put in place by President Bola Tinubu on May 29, 2023 when the fuel subsidy was removed.

    To actualise the programme, the President launched the Presidential CNG Initiative in October 2023 to deliver cheaper, safer and more climate friendly energy.

    The CNG Initiative iss designed to deliver compressed natural gas, especially for mass transit.

    Onanuga said it was part of the many intervention programmes to reduce the burden of increase in pump price on the masses.

    He added that government had provided N100 billion (part of the N500 billion palliative budget) to purchase 5,500 CNG vehicles, 100 electric buses and more than 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.

    “With necessary tax and duty waivers approved by President Tinubu in December 2023, the PCNGI committee is partnering with the private sector to deliver the promise on the initiative.

    The private sector has responded with more than $50 million in actual investments in refuelling stations, conversion centres, and mother stations.

    “Also, a safety policy document on 80 standards and regulations that must be strictly adhered to by operators has been developed and approved to ensure CNG conversions are done safely and reliably,” he said.

    Onanuga said that the deployment of CNG buses and tricycles and the vision to get at least one million natural gas propelled vehicles on the roads by 2027 would mark a major energy transition in the country’s transportation industry.

    He said that the use of more expensive diesel and petrol would gradually be phased out, when many vehicles, including trucks, run on natural gas, adding that 30 of the 36 states had the gas in abundance.

    “Remarkably, the Tinubu administration, in driving the nation to the desired destination, has flagged open a new industry, along with thousands of new jobs.

    “Four plants owned by JET, Mikano, Mojo, and Brilliant EV located in various parts of the country are involved in the assembly of the Semi Knocked Down (SKD) components of the CNG buses.

    “JET, which has received the SKD parts, is coupling the buses in Lagos and is working towards delivering 200 units before the first anniversary of the Tinubu administration.”

    Onanuga said that Brilliant EV would assemble electric vehicles meant for Kano and Borno, which would not have access to CNG for now as well as in key Nigerian cities and university campuses.

    “In all, over 600 buses are targeted for production in the first phase that will be accomplished this year.

    “A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles.

    “The SKD parts, manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles, are set for shipment to Nigeria and expected to arrive early in May.

    “About 2,500 of the tricycles will be ready before May 29, 2024.”

    He said that thousands of conversion kits for petrol powered buses and taxis that want to migrate to CNG are also ready with CNG cylinders.

    The Presidential aide added that the Federal Government intended to provide them at subsidised rates, especially to commercial vehicle drivers, to bring down the cost of public transportation.

    Onanuga said that the PCNGI was working with 22 other agencies, including the Standards Organisation of Nigeria and Nigeria Automotive Design and Development Council, to deliver 80 Natural Gas Vehicle Conversion and Associated Appliances Standards for the country.

    He added that an app MYCNG.NG to embed the Nigeria Gas Vehicle Monitoring Systems would show CNG conversion and refuelling sites in the country.

    “The Tinubu administration is an enabler of the evolving CNG industry.

    “In collaboration with the private sector, the PCNGI is set to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states before the end of this year.

    “The vision of Mr. President to deliver one million gas vehicles cannot be possible without the private sector, including the RTEAN, NARTO, NURTW, and players in the downstream sector of the transportation chain and financiers.”

  • CNG conversion centre opens in Abuja

    CNG conversion centre opens in Abuja

    The Presidential Compressed Natural Gas Initiative (P-CNGi), on Thursday inaugurated the Abuja CNG conversion and training centre to ensure the attainment of sustainable energy future in the country.

    The centre was commissioned at the Nigerian Institute of Transport Technology (NITT), under the leadership of its Director-General (D-G), Dr Bayero Farah.

    In his remark, Mr Zacch Adedeji, the Chairman, Presidential CNG Initiative Steering Committee, said CNG was the way to reduce the cost of transportation.

    Adedeji disclosed that the government spent US$ 6 billion to import petroleum into the country annually, “using our dollars and just creating the mess that we have found ourselves in.

    “At times for us at the Presidential CNG Initiative Steering Committee, when we are meeting we can’t just understand how it was possible that Nigeria up until today has been buying Petrol for all cars and commercial vehicle when we have gas here.

    “And we can use the gas. We can power all our vehicles with the gas at a cheaper and one third of the cost.

    “We will not have been spending any foreign exchange, and we will have created all kinds of jobs and opportunities.”

    Adedeji, represented by the Senior Special Assistant to the President on Domestic Affairs, Mr Toyin Subair, assured that no monopoly would be created in executing the CNG project across the country.

    He said within the next three to five years, Nigeria would be saving US$ 3 million to US$ 5 billion that the country was spending on Premium Motor Spirit (PMS), adding that “we will no longer be buying it.

    “We are opening this economy and this part of the sector to everybody in the country. If you are able to set up a conversion centre, we will work with you if you are able to import kits.

    “If you organize training for the people, we will start working with you. We are bringing all the banks and all the stakeholders into the sector.

    “There is going to be a level-playing field and that is the assurance of President Bola Tinubu on this initiative and we pray to God that it is also going to be extremely successful.”

    Also, the Project Director of P-CNGi, Mr Micheal Oluwagbemi, said the event marked a significant step forward in pursuing cleaner, more affordable, and environmentally-responsible energy solutions.

    Oluwagbemi, who is an engineer, also said the launching of the P-CNGi-affiliated conversion centre was a conscious choice to embrace cleaner and more affordable energy solutions.

    “In a world where the environment is crying out for help, where climate change is an undeniable reality, our decision to adopt CNG technology is not just commendable; it is essential.

    “The commissioning of the Abuja P-CNGi Conversion Centre, the second of its kind, after the Lagos State P-CNGi Conversion Centre, represents a profound shift in Nigeria’s approach to energy and transportation.”

    He said the initiative, driven by the vision of President Tinubu, was not merely about technological advancements, as the move reflects a fundamental transformation of mindset, habits, and responsibility towards the environment and the nation’s economy.

    “The conversion of Petrol Motor Spirit (PMS) vehicles to Compressed Natural Gas (CNG) Bi-Fuel at this facility is a testament to Nigeria’s commitment to mitigating climate change and ensuring sustainable economic growth.

    “The Presidential CNG Initiative is aligned with the Renewed Hope Agenda of President Tinubu, emphasising prudence in resource management and dedication to the well-being of the environment.

    “I want to express my deepest gratitude to all the individuals, organisations, and partners who have been instrumental in making this launch possible, most especially, our gratitude to Mr. President for deeming us worthy to be executors of his vision for a cheaper, cleaner, safer, and more reliable form of energy for transportation.

    “The commissioning of the Abuja P-CNGi Conversion Centre is not the end of the journey, but rather, it marks a new beginning.

    “Challenges will undoubtedly arise, but the collective determination, innovative spirit, and collaboration of Nigerians will pave the way for a sustainable, efficient, and responsible future.”

    Earlier, the Minister of Transportation, Sen. Saidu Alkali, said studies have shown that CNG could earn the Federal Government over N200 billion from every one million cars if converted.

    The minister explained that CNG is cleaner, cheaper and available in the country, adding that it could be used in cars, vans, trucks, motorcycles, buses, trains and ships.

    Alkali, represented by Cynthia Ahkidenor, acting Director, Department of Road Transport and Mass Transit Administration, said CNG would also provide the country with energy security.

    The minister said the ministry was aggressively involved in the advocacy of engine conversion as an alternative to the removal of fuel subsidy.

    “The Federal Ministry of Transportation has been having a series of conversation with relevant stakeholders and transport operators.

    “This is in order to get them to buy into the conversation of vehicles to dual engine as a one-off expenditure due to cost of energy.

    “The ministry is promoting the rethink compressed natural gas into proper use which is one of the conversation the federal government is involved in as well as being a signatory to the Green House Emission.

    “And we have committed to reducing gas from 40 to 60 per cent emission by 2060,” Alkali said.

    In his speech, the D-G of the transport institute, Dr Farah, said the launch of the centre marked a significant turning point in the history of transportation in the country.

    “We have provided this centre to serve as a conversion centre to all categories of vehicles. Owners will come in to convert their vehicles to CNGs.

    “I want to appeal to motorists in Abuja and environs to take advantage of the facilities at this centre to convert their vehicles and enjoy the cheap energy that comes with the CNG,” he said.

    The P-CNGi recently established seven CNG conversation centres across the country.

    It said the establishment of the centres symbolised the commitment of the Tinubu administration to spearhead energy revolution in the country.

    It assured that more CNG conversion centres would be established across the country, as a pivotal step in the country’s journey towards a cleaner and economically-sound future.

  • FG waives VAT on CNG purchases, establishes seven CNG conversion centres

    FG waives VAT on CNG purchases, establishes seven CNG conversion centres

    The presidential Compressed Natural Gas (CNG) Initiative Steering Committee has said on Friday said 7 CNG conversation centres have been established in the country.

    Mr Zacch Adedeji,the Chairman of the Committee, made this known during the launch of the much awaited CNG initiative with the handing over of 2 CNG buses to the State House, Permanent Secretary, Mr Olusesan Adebiyi, at the presidential villa, Abuja.

    Adedeji, who is also the acting Chairman, Federal Inland Revenue Service (FIRS), was represented by Mr Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

    He said the establishment of the CNG conversion centres symbolised the commitment of President Bola Tinubu administration to spearhead energy revolution in the country.

    Adedeji said more CNG conversion centres would be established across the country, adding that the effort was a pivotal step in the country’s journey towards a cleaner and economically sound future.

    He added that the project was not only about the conversation of vehicles but also creating employment opportunities.

    According to him, FIRS would waive Value Added Tax on CNG purchases and seek duty waivers for the value chain.

    He said that the aim was to build a sustainable future leveraging the nation’s cheap and clean energy source.

    According to him, it also demonstrates Tinubu’s commitment to environmental sustainability and economic growth.

    He said, “This CNG buses to be handed over to the State House are the vanguard of a future, where energy is cleaner and more economical.’’

    Adedeji appreciated the President for his support and to all those who played a part in the project.

    He said, “I’m pleased to announce that there are currently seven conversion centres in Nigeria and the government is actively working to establish more of them. These plans will be rolled out, starting this afternoon, by the initiative.

    “This project is not only about conversion of vehicles but also about generating employment opportunities. It demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth.

    “Moreover, it is my pleasure as your Chief Tax Officer, a position I hold alongside as Chairman of this initiative, to announce that we will be waiving the Value Added Tax on CNG purchases as well as seeking duty waivers for value-chain.

    “The goal is to build a sustainable future, leveraging our own cheap and clean energy source; gas.’’

  • FG establishes 7 CNG conversion centres

    FG establishes 7 CNG conversion centres

    The Presidential Compressed Natural Gas (CNG) Initiative Steering Committee, on Friday said seven CNG conversion centres have been established in the country.

    Chairman of the Committee, Mr Zacch Adedeji, made this known while handing over CNG buses to the State House, Permanent Secretary, Mr Olusesan Adebiyi, at the presidential villa, Abuja.

    Adedeji who is the acting Chairman, Federal Inland Revenue Service (FIRS), was represented by Mr Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority.

    He said the establishment of the CNG conversion centres symbolised the commitment of President Bola Tinubu administration to spearhead energy revolution in the country.

    Adedeji said more CNG conversion centres would be established across the country.

    He said that the effort was a pivotal step in the country’s journey towards a cleaner and economically sound future.

    He added that the project was not only about the conversion of vehicles but also creating employment opportunities.

    Adedeji disclosed that FIRS would waive Value Added Tax on CNG purchases and seek duty waivers for the value chain.

    He said that the aim was to build a sustainable future leveraging the nation’s cheap and clean energy source.

    According to him, it also demonstrates Tinubu’s commitment to environmental sustainability and economic growth.

    “This CNG buses to be handed over to the State House are the vanguard of a future, where energy is cleaner and more economical,” he added.

    Adedeji appreciated the President for his support and to all those who played a part in the project.

    The Chairman, Nigeria Governors Forum and Governor of Kwara, AbdulRahman AbdulRazaq, said the event marked a new turn in the history of Nigeria as it begins gradual transition from petroleum to gas powered vehicles.

    He said that Universities would be the first beneficiaries of the buses, adding that all state governments would key into it.

    “For those of us who were in the gas industry, this is what we have been calling for decades.

    “Nigeria is gas country not a crude oil country, 70 per cent or there about, more of our hydrocarbon is gas. So why are we investing all our time and energy in crude oil?

    “Today is a turning point for us that President Tinubu has taken this bold decision to move from petroleum to gas. This is the first step in a major change to come.”

    On his part, Mr Chinedu Oguegbu, the Managing Director, OMAA Motors, a Nigerian automobile manufacturer, expressed gratitude to Tinubu for the initiative.

    “Aside connecting with the energy transition we are also deepening industrialisation by patronising made in Nigeria vehicles.

    “This is going to go beyond the natural gas value chain. This is going to create thousands of jobs for the youths,” he said.

    Also, the Permanent Secretary, State House, Adebiyi, said the event was the beginning of a new dawn.

    “The State House has some fuel dumps and I want to assure you right away that one of our fuel dumps will be converted to CNG with immediate effect to guarantee frequent fueling of the buses and their maintenance.

    “The provision of the buses will enhance the efficiency of our staff, enhance their punctuality to work and will also enhance speedy delivery of services in the entire State House.”

    The National Economic Council (NEC), on July 20, 2023 endorsed deployment of CNG vehicles for public transportation to cushion the impact of the removal of petroleum subsidy.

    The decision was taken after a presentation by Gov. Chukwuma Soludo of Anambra, who headed the NEC Adhoc Committee on cushioning the effect of petrol subsidy removal.