The Presidency has set to launch the Presidential CNG Initiative (PCNGI) ahead of Tinubu’s first anniversary to mark a significant stride towards delivering cheaper, safer, and more climate-friendly energy solutions.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated on Sunday that the initiative which was conceived after the removal of the fuel subsidy in May 2023, aims to introduce compressed natural gas (CNG) for mass transit.
Onanuga said: “All is now ready for the 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”
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The Federal Government, in its bid to alleviate the impact of the increase in pump prices on the masses, allocated N100 billion from the N500 billion palliative budget to purchase 5500 CNG vehicles, 100 Electric buses, and over 20,000 CNG conversion kits. The development of CNG refilling stations and electric charging stations across the country is to complement this initiative.
Michael Oluwagbemi, an oil and gas expert leading the PCNGI committee, has spearheaded foundational reforms to facilitate the transition towards CNG and Electric Vehicles. With necessary tax and duty waivers approved by President Tinubu, the committee is collaborating with the private sector, attracting over $50 million in investments towards refuelling stations and conversion centres.
According to Onanuga, the deployment of CNG buses and tricycles signifies a major energy transition in Nigeria’s transportation industry. It is with the vision to have at least one million natural gas-propelled vehicles on the roads by 2027. This transition aims to phase out more expensive diesel and petrol usage, thereby reducing pollution and meeting Nigeria’s commitments under the Paris Climate Accord.
Four plants, including JET, Mikano, Mojo, and Brilliant EV, are engaged in assembling CNG buses and tricycles across different parts of the country. These efforts are expected to yield over 600 buses in the first phase, with additional plans for assembling electric vehicles to cater to regions without access to CNG.
The involvement of private sector players such as NIPCO, BOVAS, and MRS in offering refuelling services and conversion centres emphasises the collaborative effort towards achieving the PCNGI objectives. Additionally, the Nigerian National Petroleum Corporation (NNPC) Limited is set to announce locations for CNG refilling and conversion centres nationwide, aligning with the initiative’s objectives.
To ensure compliance and safety standards, the PCNGI has developed 80 Natural Gas Vehicle Conversion and Associated appliance standards in collaboration with 22 agency partners. Moreover, the launch of the MYCNG.NG App will facilitate monitoring and accessibility to CNG conversion and refuelling sites across the country.
The commitment of the Tinubu-led administration to enable the CNG industry can be observed through strategic partnerships with the private sector. And the projected establishment of 100 conversion workshops and 60 refuelling sites across 18 states by the end of the year. This initiative aims to revolutionize Nigeria’s transportation sector while creating thousands of new jobs and reducing environmental pollution.