The Special Assistant to the President on Special Duties and Domestic Affairs, Toyin Subaru, has provided assurances that the upcoming deployment of Compressed Natural Gas (CNG) buses in Nigeria will lead to a reduction in CNG prices to N230 per kilogram. This announcement coincides with the government’s plan to introduce 11,500 gas-powered buses nationwide next week, aiming to alleviate current transportation challenges.
Subaru highlighted that this initiative is expected to save Nigerians two-thirds on their transportation expenses while promoting the use of CNG as a more affordable alternative to traditional petrol-powered vehicles. He made these statements during a stakeholders’ meeting held at the Bank of Industry headquarters in Abuja.
He emphasized the importance of utilizing CNG, which is abundant in Nigeria, to power vehicles and reduce the country’s dependence on imported petroleum products. The government intends to establish a network of CNG distribution points across Nigeria, making it more accessible to the public.
Subaru added that an app will be developed to help individuals locate nearby CNG stations, allowing them to purchase CNG for their vehicles at a significantly lower cost of N230 per kilogram, in contrast to the current petrol price of N680 per liter. This initiative is expected to lead to substantial savings for Nigerians in their transportation expenses.
The Federal Government has set an ambitious goal of having one million CNG vehicles on Nigerian roads by 2027, demonstrating its commitment to promoting sustainable and cost-effective transportation.
Michael Oluwagbemi, the Programme Director of the Presidential CNG Initiative, also highlighted the government’s intention to establish 1,000 conversion workshops across the country. This initiative is expected to create over 50,000 jobs and help mitigate the effects of subsidy removal.
Oluwagbemi explained that the goal of the Presidential CNG Initiative is to make 55,000 conversion kits available to the Nigerian public. This program, described as a palliative measure, is set to continue until March 31, 2024, with the aim of achieving the roll-out of 55,000 conversion kits for existing gasoline-dependent vehicles within this time frame.
The initiative is focused on expanding the number of workshops, involving partnerships with relevant stakeholders, and increasing investment in the sub-sector to reach the goal of establishing conversion workshops nationwide. This effort is expected to create jobs for technicians and boost the CNG ecosystem, benefiting the economy and helping to manage transport inflation.
