By Becky Usman
In a significant development, the federal government officially launched the much-anticipated Compressed Natural Gas (CNG) Initiative on Friday, with the delivery of two CNG-fueled buses to the State House management. The official launch ceremony took place at the Presidential Villa in Abuja and was spearheaded by Mr. Zacch Adedeji, Chairman of the Presidential Compressed Natural Gas Initiative (P-CNGi) and also the Chairman of the Federal Inland Revenue Service (FIRS).
Mr. Adedeji announced that the launch marked the opening of seven pilot conversion centers nationwide. In a bid to promote the use of CNG, the government has exempted Value Added Tax (VAT) on CNG purchases and is actively seeking duty waivers for the value chain.
Representing the Chairman of the initiative at the launch, Mr. Farouk Ahmed, CEO of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), revealed plans to establish additional conversion centers across the country within the next two weeks. He emphasized the broader scope of the project, which aims to create employment opportunities and underlined President Bola Tinubu’s commitment to environmental sustainability and economic growth.
Adedeji highlighted that the CNG project not only signifies a leap in vehicle conversion but also symbolizes President Tinubu’s dedication to leading an energy revolution in Nigeria. Nigeria, being the eighth-largest gas-producing nation globally with substantial hydrocarbon gas resources, is positioned to transition from petrol-powered vehicles to gas-powered transit vehicles.
Chairman AbdulRahman AbdulRazaq of the Nigeria Governors’ Forum (NGF) urged the private sector to invest in the CNG Bus program and emphasized that universities and state governments are set to benefit from this transition. He lauded the cost-effectiveness and environmental benefits of using gas as a transportation fuel.
Project Director Engr. Micheal Oluwagbemi disclosed that state governments have already expressed interest in investing in CNG Buses, with the Rivers State Government taking the lead to address transportation challenges.
Regarding the cost of conversion, Oluwagbemi acknowledged the variation based on vehicle models and types. However, he assured the public that the P-CNGi committee is working to incentivize and lower conversion costs.
The federal government has already ordered 55,000 conversion kits as part of an immediate plan to make the transition more accessible to various stakeholders, including labor unions and mass transit operators.
Receiving the CNG Buses on behalf of the State House, Engr. Olusesan Adebiyi, the Permanent Secretary of the State House, expressed confidence that these buses would enhance staff efficiency and punctuality. He pledged that all State House operational buses would be converted to run on natural gas.
Chinedu Oguegbu, Managing Director of OMAA Motors and Managing Partner of PCNGI, praised the government’s support for made-in-Nigeria vehicles and highlighted the potential for job creation and technology development through the CNG initiative.
The Chief of Staff to the President, Femi Gbajabiamila, officially inaugurated the initiative, marking a significant step toward a more sustainable and cost-effective transportation system in Nigeria.