As the Federal Government FG steps its Compressed Natural Gas adoption in the country, the Presidential CNG Initiative says plans have been concluded to roll out 5,000 CNG-powered tricycles over the next three months.
The Programme Director and Chief Executive, P-CNGi, Michael Oluwagbemi, said this on Thursday at the inauguration of the Luojia Tricycle Assembly plant in Ogun State.
The government has continued to galvanise resources towards a mass adoption of CNG in the country.
Oluwagbemi said government had introduced several incentives, including Value Added Tax exemptions and Custom duty waivers for CNG-powered tricycles and other vehicles entering the country.
The government, he said, had also mandated all Ministries, Departments, and Agencies to purchase only CNG-powered vehicles moving forward.
The, move, according to programme director, will drive the adoption of cleaner energy solutions across the country.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority is providing CNG at a concessionary price, offering more than a 40 per cent discount on the current price.
“The 5,000 tricycles form part of the initial units acquired by the government under the Presidential CNG Initiative, which aims to enhance affordable and eco-friendly transportation across Nigeria and to mitigate the impact of fuel subsidy removal,” Oluwagbemi said.
According to the P-CNGi chief executive, the new Luojia assembly plant will help create jobs and boost economic growth.
“It will generate at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector in implementing this initiative would boost economic growth and increase tax revenue for the government,” he said.
As the Federal Government steps its Compressed Natural Gas adoption in the country, the Presidential CNG Initiative says plans have been concluded to roll out 5,000 CNG-powered tricycles over the next three months.
The Programme Director and Chief Executive, P-CNGi, Michael Oluwagbemi, said this on Thursday at the inauguration of the Luojia Tricycle Assembly plant in Ogun State.
The government has continued to galvanise resources towards a mass adoption of CNG in the country.
Oluwagbemi said government had introduced several incentives, including Value Added Tax exemptions and Custom duty waivers for CNG-powered tricycles and other vehicles entering the country.
The government, he said, had also mandated all Ministries, Departments, and Agencies to purchase only CNG-powered vehicles moving forward.
The, move, according to programme director, will drive the adoption of cleaner energy solutions across the country.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority is providing CNG at a concessionary price, offering more than a 40 per cent discount on the current price.
“The 5,000 tricycles form part of the initial units acquired by the government under the Presidential CNG Initiative, which aims to enhance affordable and eco-friendly transportation across Nigeria and to mitigate the impact of fuel subsidy removal,” Oluwagbemi said.
According to the P-CNGi chief executive, the new Luojia assembly plant will help create jobs and boost economic growth.
“It will generate at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector in implementing this initiative would boost economic growth and increase tax revenue for the government,” he said.
Earlier
Special Adviser to the President on Information and Strategy, Bayo Onanuga, has confirmed that the first set of compressed natural gas (CNG) vehicles will be inaugurated before Tinubu administration’s first anniversary on May 29.
Onanuga made this disclosure in a statement on Sunday in Abuja.
According to him, the Federal Government allocated N100 billion from the N500 billion palliative budget to purchase 5,500 CNG vehicles (buses and tricycles), 100 electric buses, and over 20,000 CNG conversion kits.
He further explained this funding also supports the expansion of CNG refilling and electric charging stations.
- “After months of detailed planning and background work, the committee driving the initiative is set to deliver on President Tinubu’s vision and promise.
- “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 future the President promised.
- “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.
- “The private sector has responded with over $50 million in actual investments in refuelling stations, conversion centres, and mother stations,” he said.
Nigeria’s Transportation System to move towards cleaner energy
Furthermore, Onanuga stated that the rollout of CNG buses and tricycles, coupled with the goal to have at least one million natural gas vehicles on the roads by 2027, will signify a significant shift in our nation’s transportation sector towards cleaner energy.
