President Bola Ahmed Tinub’s administration will roll out the first batch of compressed natural gas (CNG) vehicles before its first anniversary on May 29.
Presidential spokesman, Bayo Onanuga, disclosed this on Sunday, April 21, 2024.
Tinubu had announced an end to the fuel subsidy era during his inauguration, a move that triggered a hike in the cost of the product.
He, however, promised to put out measures including CNG-powered mass transit buses and tricycles to cushion the impacts of the subsidy removal.
According to Onanuga, a total of 2,700 CNG buses and tricycles will hit Nigerian roads nationwide in the initial phase by May 29.
This is part of the N100bn provision in the N500bn palliative budget to procure 5,500 CNG vehicles and 20,000 conversion kits following the Federal Government’s removal of fuel subsidy on Tinubu’s assumption of office last year.
Onanuga revealed that the private sector has already committed over $50 million in investments towards CNG refueling stations, conversion centers and mother stations across the country.
He said tax and duty waivers approved by President Tinubu in December 2023 helped in facilitating these investments.
“From the end of May, Nigeria will take some baby steps to join such nations that already have large fleets of CNG vehicles.
“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.
“About 2,500 of the tricycles will be ready before May 29, 2024…working towards delivering 200 units before the first anniversary of the Tinubu administration,” said Onanuga.
It added that in all, over 600 buses are targeted for production in the first phase which will be accomplished in 2024.
Onanuga added, “A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles. The SKD parts manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and expected to arrive early in May. About 2,500 of the tricycles will be ready before May 29, 2024
“Thousands of conversion kits for petrol powered buses and taxis that want to migrate to CNG are also ready with CNG cylinders. The Federal Government intends to provide them at subsidized rates, especially to commercial vehicle drivers to bring down the cost of public transportation.
“As part of private sector collaboration, NIPCO and BOVAS are involved in offering refilling services for the CNG vehicles and also serving as conversion centres. NIPCO is setting up 32 stations nationwide to offer the services. The company has completed the set up of four of the CNG stations. Likewise, BOVAS is setting up eight stations in Ibadan, two each in Ekiti, Abuja and four in Ilorin. MRS is also involved. It is making efforts to announce where its refilling stations and conversion centres will be.
“The NNPC Limited which had launched an on-and-off CNG initiative in the past is joining the new initiative. It is expected soon to announce the locations for CNG refilling and CNG conversion centres nationwide.”
