Presidential Compressed Natural Gas Initiative (P-CNGi) has signed an MoU with conversion workshop owners to convert one million commercial transport petrol vehicles to CNG by 2027.
Gatekeepers News reports that the programme which was held in Abuja was attended by partners like NIPCO Gas, Portland Gas Ltd., Fix It 45, ABG Oil, and the Nigeria Institute of Transport Technology (NITT).
P-CNGi CEO, Mr. Michael Oluwagbemi noted that the programme aims to acquire the highest global vehicle conversions, identifying 2,000 workshops nationwide, with 123 already selected.
Unionized commercial operators, including RTEAN, NATO, and NURTW, will start conversions at five FCT workshops across the nation.
Ride-sharing operators such as Bolt and Uber will get a 50% discount on conversion equipment and free installation, with government covering the rest and offering instalment payments.
Oluwagbemi said, “This partnership is basically to respond to that concern; firstly, for commercial operators that are unionised through their unions can benefit 100 per cent discount, that is they will get the kits and installation done for free.”
“The unionised commercial operators include the Road Transport Employers Association of Nigeria (RTEAN), Nigerian Association of Transport Owners (NATO) and National Union of Road Transport Workers (NURTW).”
“These will be done through the 123 certified workshops that we have identified while we will work with these five present in the FCT and then activate more as we expand across the country.”
“Through the partnership, the second operators which include Bolt Nigeria and UBER among others will also benefit 50 per cent write-off on the equipment and free installation, while the government pays the remaining 50 per cent.”
“Arrangement is made too with these companies for them to pay in instalments without upfront.”
“Vast Nigerians depend on these Rideshares aside from the public mode of transportation; now Nigerians will be able to benefit from the low cost of transportation occasioned by the implementation of this programm.”
He further noted that the free conversion initiative for one million commercial vehicles over the next three years is government’s response to public complaints about high conversion cost, which is around N500,000.
Oluwagbemi emphasized that, as part of its palliative initiative, the Presidential Compressed Natural Gas Initiative (P-CNGi) plans to distribute over 20,000 conversion kits to states with CNG capacity within the next three months.
He added that National Assembly has allocated additional funding to procure necessary kits and cylinders that will be available in the fourth quarter of 2024.
Oluwagbemi further revealed that the Presidential Compressed Natural Gas Initiative (P-CNGi) has already begun installing conversion kits.
Mass transit vehicle operators, responsible for transporting 90% of Nigerians, will benefit from this initiative and are expected to pass on their savings to consumers.
The CEO noted that P-CNGi has implemented a robust monitoring mechanism to oversee conversions and enforce reduced pricing.
The Nigerian Gas Vehicle Monitoring System will ensure proper conversion and tracking, with the assurance that the savings are effectively passed on to consumers.
