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By Moses Akaigwe
The Federal Government on Sunday disclosed that the Presidential Compressed Natural Gas (CNG) Initiative launched in October 2023 to reduce the burden of oil subsidy withdrawal, targets the deployment of no fewer than one million autogas and electric vehicles by the year 2027.
A press statement by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanugs, said that as part of the early phase of this intervention, the Federal Government had provided N100 billion to purchase about 6000 CNG buses and tricycles, 100 electric buses and over 20,000 CNG conversion kits.
This is in addition to spurring the development of CNG refilling stations and electric charging stations.
Onanuga stated that the CNG/EV initiative by President Bola Tinubu administration marks a major energy transition in Nigeria’s transportation industry – gradually departing from the use of more expensive diesel and PMS (premium motor spirit) when many vehicles, including trucks start running on natural gas, which Nigeria has in abundance.
Already, some of the auto companies whose plants were tasked with the responsibility of “coupling” the semi-knocked down (CKD) components for the buses, including Dana Motors, JET Motors, Mikano Motors, Kojo Motors, and Brilliant, have committed to prompt delivery of the procurement.
Dana Motors Ltd is expected to assemble 14-seater CNG buses at its auto plant in the Isolo area of Lagos, while JET Motors, which has received the SKD parts, is working at its own factory in Gbagada, Lagos, towards delivering 200 units of the vehicles before the Tinubu administration’s first anniversary on May 29, 2024.
Opened nine years ago, Dana Motors auto plant has an installed capacity for 18,000 units of vehicles per annum.
The statement disclosed that Brilliant EV is awaiting the SKD parts for the assembly of electric vehicles meant for states such as Kano and Borno, which do not have access to CNG for now, and will also be available in key Nigerian cities and university campuses later.
““Already, the committee, being led by Michael Oluwagbemi, an oil and gas expert, has delivered some major foundational reforms to enable the new CNG and Electric Vehicles function as promised. All is now ready for delivery of the first set of critical assets for deployment and launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.
“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 over $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.”
The statement added that Brilliant EV will assemble electric vehicles. “It is awaiting the SKD parts, which will arrive in due course. The electric vehicles it will produce are meant for states such as Kano and Borno, which do not have access to CNG for now.
“They will also be available in key Nigerian cities and university campuses. It must be noted that soon to be completed gas pipeline projects initiated by the Buhari administration and being completed by NNPCL (the AKK Pipeline) will take gas into the hinterlands of north east and north west where there is current paucity.
“In all, over 600 buses are targeted for production in the first phase that will be accomplished this year.”
As part of the initiative, 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, the press statement said .
