From Adanna Nnamani, Abuja
In a significant move to alleviate transportation costs and promote environmental sustainability, the federal government has announced a comprehensive initiative to offer a 100 per cent discount on Compressed Natural Gas (CNG) conversion for all unionized commercial drivers across the country, starting with the Federal Capital Territory (FCT).
The ambitious programme aims to enhance the economic well-being of drivers and contribute to the nation’s broader environmental goals.
E-hailing taxi services, including popular platforms such as Bolt and Uber, will also benefit from this initiative through a 50 per cent discount on CNG conversion kits and free installation services.
The announcement was made by Michael Oluwagbemi, the Programme Director and Chief Executive Officer, Presidential CNG Initiative, during the Official Signing Ceremony of a Memorandum of Understanding (MoU) with five workshop owners in Abuja on Thursday.
The initiative is a collaborative effort involving several key partners like; NIPCO Gas PLC, Portland Gas Limited, FIX IT 45, National Institute of Technology, Calicut (NITC) and ABG Oil & Ava’s Limited.
Michael Oluwagbemi emphasised that the initiative, championed by President Bola Tinubu and supported by the Conversion Incentive Programme, aims to significantly reduce transportation costs by removing the financial barriers associated with CNG conversion. He noted that vehicles running on CNG could achieve cost savings of 40 per cent to 70 per cent compared to traditional fuels like diesel and petrol.
These savings are expected to reduce transport-related inflation and lower production costs for industries nationwide.
“The Conversion Incentive Programme addresses the high cost of converting vehicles from Premium Motor Spirit (PMS) to gas. Many operators have expressed concerns about the expense, and today, we are responding to those concerns,” Oluwagbemi stated.
For unionized commercial operators, including members of the Road Transport Employers Association of Nigeria (RTEAN), the National Association of Road Transport Owners (NARTO), and the National Union of Road Transport Workers (NURTW), the government will provide conversion kits and installation services at no cost. This will be facilitated through certified workshops identified by the government.
“We have identified approximately 123 certified conversion workshops, with five present at today’s event in Abuja. As we expand across the country, more workshops will be activated,” Oluwagbemi added.
E-hailing taxi operators will also benefit from a 50 percent discount on conversion kits, with free installation services. The government will cover the cost of installation, allowing operators to pay for the kits in manageable installments. This arrangement eliminates the need for upfront payments, making the conversion process more accessible.
The programme will initially make 20,000 conversion kits available within the next three months, targeting states with existing CNG capacity. Currently, about 23 states are equipped with CNG infrastructure, with plans to extend this capacity to Kano and Niger states.
“This initiative ensures that states with CNG capacity, their citizens, and both union and ride-share operators can participate. This is excellent news for Nigeria and marks just the beginning of our efforts to reduce transportation costs and support our economy,” Oluwagbemi concluded.
The Federal Government’s ambitious target is to convert 1 million vehicles annually to CNG. This massive conversion is expected to significantly lower transportation costs and contribute to a more sustainable and economically resilient Nigeria.
The initiative reflects a strong commitment to reducing the environmental impact of transportation, promoting sustainable energy sources, and improving the economic conditions of commercial drivers and ride-share operators across the country.