The Federal Government has revealed that Nigerians can expect to pay between N300,000 and N600,000 for the conversion of their petrol vehicles to Compressed Natural Gas (CNG). Engr. Michael Oluwagbemi, the Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, disclosed this information in an interview with Daily Trust following the official commissioning of CNG conversion centres and a demonstration of converted CNG vehicles in Lagos.
Oluwagbemi also announced the government’s plan to establish 10,000 CNG vehicle conversion workshops in the near future. Addressing the cost of conversion, he explained that it may vary between N300,000 and N600,000, depending on exchange rate compatibility. The government aims to initiate the assembly and manufacturing of CNG conversion kits locally, creating additional employment opportunities.
Currently, the country imports conversion kits, but the government, through this initiative, is offering discounts on the immediate conversion cost. Oluwagbemi noted that the government is considering flexible payment options, and the committee continues to review the CNG initiative, exploring more discounts and incentives to encourage adoption.
The initiative is anticipated to attract over $2 billion in investments into the Nigerian economy and create more than 250,000 employment opportunities for various professionals. Fola Akinola, the Chief Executive Officer of Femadec Limited, expressed anticipation for financing structures from banks, supported by the federal government and P-CNGi’s intervention, to further support the initiative. The move towards CNG is part of the government’s efforts to promote cleaner and more sustainable energy options in the transportation sector.
