By Ayodele Oni
The Federal Government on Sunday gave an update on Presidential CNG Initiative, which was launched in October last year.
The Special Adviser to the President on Information and strategy, Bayo Onanuga disclosed that after months of detailed planning and background work, the committee driving the initiative is set to deliver on President Tinubu’s vision and promise.
He stated in a statement that 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.
He said “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.
“After the removal of the wasteful fuel subsidy on May 29, 2023, President Bola Ahmed Tinubu launched the Presidential CNG Initiative in October last year to deliver cheaper, safer and more climate friendly energy. The CNG Initiative was designed to deliver compressed natural gas especially for mass transit.
“The Federal Government as part of the many intervention programmes to reduce the burden of increase in pump price on the masses, provided N100 billion (part of the N500 billion palliative budget) to purchase 5500 CNG vehicles (buses and tricycles), 100 Electric buses and over 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.
“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 deployment of CNG buses and tricycles and the vision to get at least one million natural gas propelled vehicles on our roads by 2027 will mark a major energy transition in our country’s transportation industry.
“The use of more expensive diesel and PMS will gradually be phased out, when many vehicles, including trucks run on natural gas, which our nation has in abundance in at least 30 out of the 36 states of the federation.
“As studies have shown, one of the main causes of air pollution is primarily the amount of gases emitted by gasoline and diesel engines.
“To reduce the pollution, some countries of the world, such as India, China, Iran, Pakistan, Brazil , Argentina, Italy have built fleets of natural gas powered vehicles, instead of going the route of relying on liquid petroleum products propelled vehicles.
“Natural gas vehicles reduce tail pipe emission by up to 40 percent, and Nigeria’s commitment to this course will enable her meet her nationally determined commitments (NDCs) under Paris Climate Accord to which we are signatory.
“From the end of May, Nigeria will take some baby steps to join such nations that already have large fleets of CNG vehicles.
“Remarkably, the Tinubu administration, in driving the nation to the desired destination, has flagged open a new industry, along with thousands of new jobs.
“In all, over 600 buses are targeted for production in the first phase that will be accomplished this year.
“In collaboration with the private sector, the PCNGI is set to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states before the end of this year.
“The vision of Mr. President to deliver one million gas vehicles cannot be possible without the private sector, including the RTEAN, NARTO, NURTW, and players in the downstream sector of the transportation chain and financiers.”
