The Presidential Compressed Natural Gas Initiative (P-CNGi) has signed an MoU with conversion workshop owners to convert one million commercial transport petrol vehicles to CNG by 2027.
The ceremony in Abuja included partners like NIPCO Gas, Portland Gas Ltd., Fix It 45, ABG Oil, and the Nigeria Institute of Transport Technology (NITT).
Mr. Michael Oluwagbemi, P-CNGi CEO, stated that the program aims for the highest global vehicle conversions, identifying 2,000 workshops nationwide, with 123 already selected.
Unionized commercial operators, including RTEAN, NATO, and NURTW, will start conversions at five FCT workshops, expanding nationwide.
Ride-sharing operators like Bolt and Uber will get a 50% discount on conversion equipment and free installation, with the government covering the rest and offering instalment payments.
“This partnership is basically to respond to that concern; firstly, for commercial operators that are unionised through their unions can benefit 100 per cent discount, that is they will get the kits and installation done for free.
“The unionised commercial operators include the Road Transport Employers Association of Nigeria (RTEAN), Nigerian Association of Transport Owners (NATO) and National Union of Road Transport Workers (NURTW).
“These will be done through the 123 certified workshops that we have identified while we will work with these five present in the FCT and then activate more as we expand across the country.
“Through the partnership, the second operators which include Bolt Nigeria and UBER among others will also benefit 50 per cent write-off on the equipment and free installation, while the government pays the remaining 50 per cent.
“Arrangement is made too with these companies for them to pay in instalments without upfront.
“Vast Nigerians depend on these Rideshares aside from the public mode of transportation; now Nigerians will be able to benefit from the low cost of transportation occasioned by the implementation of this programme,’’ he said.
Oluwagbemi emphasized that this free conversion initiative for one million commercial vehicles over the next three years is a government response to public complaints about the high conversion cost, which is around N500,000.
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Oluwagbemi elaborated that the Presidential Compressed Natural Gas Initiative (P-CNGi) plans to distribute over 20,000 conversion kits to states with CNG capacity within the next three months as part of its palliative initiative.
He also disclosed that the National Assembly has allocated additional funding to procure the necessary kits and cylinders, which will be available in the fourth quarter of 2024.
Oluwagbemi further revealed that the Presidential Compressed Natural Gas Initiative (P-CNGi) has already begun installing conversion kits. Mass transit vehicle operators, responsible for transporting 90% of Nigerians, will benefit from this initiative and are expected to pass on their savings to consumers.
He emphasized that P-CNGi has implemented a robust monitoring mechanism to oversee conversions and enforce reduced pricing. The Nigerian Gas Vehicle Monitoring System will ensure proper conversion and tracking, guaranteeing that the savings are effectively passed on to consumers.