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First with the News

Nigeria Takes First Step In CNG Initiative With 7 Conversion Centers

October 28, 2023
in Economy, Top Stories
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Nigeria Ramps Up Access To Cleaner Fuel With New CNG Stations
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By John Ikani

Nigeria’s federal government has ignited the much-anticipated Compressed Natural Gas (CNG) Revolution with the delivery of two eco-friendly CNG-fueled buses to the State House in Abuja.

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The launch of the initiative, orchestrated by the Chairman of the Presidential Compressed Natural Gas Initiative (P-CNGi) and the Acting Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, also included the inauguration of seven pilot conversion hubs across the nation.

According to Adedeji, the government has generously waved goodbye to the Value Added Tax (VAT) on CNG purchases, and they are in hot pursuit of duty waivers to grease the wheels of this value-packed chain.

He went on to announce plans to establish a slew of conversion centres across the country within the next fortnight.

“This groundbreaking project is not merely about sprucing up vehicles; it’s a gateway to new job prospects. It’s a testament to President Bola Tinubu’s unwavering commitment to nurturing the environment and stimulating economic growth. What’s more, it’s my pleasure, wearing my hat as your Chief Tax Officer and as Chairman of this initiative, to announce that we’ll be letting go of VAT on CNG purchases and pushing for duty waivers across the value chain. Our aim? Building a sustainable future powered by our very own, clean, and pocket-friendly energy source: gas,” said Adedeji.

Speaking further, the Chairman noted that CNG buses are more than just technical marvels; they are symbols of President Tinubu’s quest for an energy revolution.

On his part, AbdulRahman AbdulRazaq, Chairman of the Nigeria Governors’ Forum (NGF) and Governor of Kwara State noted that Nigeria ranks eighth in the world in gas production.

He said with 70% of its hydrocarbon gas still in the tank, Nigeria is revving up its transition from gas-guzzlers to gas-powered transit vehicles.

AbdulRazaq called upon the private sector to rev up their engines and invest in the CNG Bus program.

He went on to note that universities in Nigeria will be first in line to hop on board these buses, with every state government following suit.

“As the wheels of change start rolling, I encourage the private sector to get behind this gas-powered program. Our universities will be the trailblazers, and every state government will ride along. From my state, we’re making a full-throttle investment and urging our business leaders to do the same. I can only tip my hat to Mr. President for making our dreams come true, one step at a time,” said AbdulRazaq.

In the driving seat as the Project Director of the Presidential CNG Initiative, Micheal Oluwagbemi, revealed that state governments are already eyeing their turn behind the wheel of CNG Buses.

According to him, the cost of conversion depends on the vehicle model and type, but President Tinubu is putting the pedal to the metal to make it more affordable for the people.

“Nigeria is a gas-rich country with just a smidgen of crude oil. The President is determined to shield the public from the rollercoaster of international fuel prices by tapping into our domestic gas resources. This way, jobs are born right here at home, instead of being exported abroad. The current cost of conversion depends on the vehicle model and type, but the President has set the wheels in motion to make it more affordable through PCNGI,” Oluwagbemi disclosed.

Heritage Times HT gathered that the federal government of Nigeria has ordered 55,000 conversion kits as an emergency pit stop. It’s a pit stop where everyone, from labour unions to mass transit bus operators, can get their tanks refilled.

The CNG Buses roared into the State House, and the Permanent Secretary, Olusesan Adebiyi, gleefully accepted the keys. He promised that the buses would not just boost staff efficiency and punctuality but also lead to a full garage of gas-powered State House vehicles.

“The State House is preparing for a new journey, where all our staff buses will be from you. We’re eager to collaborate with you not just for purchases but also for maintenance. We have fuel reserves, and one of them will be converted to CNG without delay to ensure quick refuelling. We’re also eager to work with you on spare parts, especially since these buses are proudly made in Nigeria,” Adebiyi cheered.

Chinedu Oguegbu, the Managing Director of OMAA Motors and managing partner of PCNGI, kicked the conversation into high gear by applauding the federal government’s enthusiasm for Nigerian-made vehicles. He emphasized that this journey to deploy CNG buses isn’t just about the gas value chain; it’s a turbo-boost for job creation among the youth.

“This isn’t just about the gas; it’s about creating thousands of jobs for the youth and driving technology development. As we progress in Nigeria, we’ll steer the wheel toward exporting our technology to other African countries with similar dreams,” Oguegbu championed.

Tags: breakingHeritageheritage timesheritagetimesmediahtlatestnewsPresidential Compressed Natural Gas Initiative (P-CNGi)the heritage timesthehtafricathtthtafricatop storiesZacch Adedeji
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