Fed Govt: $175m investment in CNG to end reliance on petrol

The Federal Government is looking forward to a huge reduction in reliance on petrol with about $175 million worth of investments in Compressed Natural Gas (CNG) vehicles.

At least 700 CNG-powered buses are expected.

Thousands of conversion kits and centres are underway.

Yesterday, the first batch of 64 buses were given to Labour centres, students and the Federal Capital Territory (FCT).

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who inaugurated the vehicles at Aso Villa yesterday, described them as a major step in curbing inflation, now on a downward trend.

Project Director of the Presidential Initiative on CNG, Mr. Michael Oluwagbemi, said: “Since our founding exactly one year ago when Mr. President announced the Presidential CNG initiative, we’ve been able to move the nation forward.

“Nigeria had seven conversion centres this time last year. Today, we can boast of over 125.

“We’ve tracked over $175 million investments in the sector coming into mother stations. An additional 12 mother stations have been commissioned between last year and today.

“We’ve seen additional refuelling stations being invested in; about 75 of them are currently under construction, and the commissioning of about 12 already this year. We expect another 25 before the end of the year.

“Jobs are being created. Just last year, we could boast of just less than 100 conversion technicians in Nigeria.

“I visited a workshop in Lokogoma where the gentleman spoke about training about 40 new technicians every week. NITT, NADDC, and all of these institutions are training technicians every day.

“Beyond this, over 34,000 conversion kits have already been ordered, and we have more than half of that in our hands and are already being distributed. Conversion is taking place across Nigeria.

“Yesterday (Saturday), 53 conversion centres in eight states were launched; we hope by next week, an additional two states will join the train, and slowly but surely, all 36 states of Nigeria and the FCT will have conversion centres.”

Information and National Orientation Minister Mohammed Idris, in a breakdown of how the 64 buses were shared, said: “Forty of these buses are going to the labour unions; 20 of the buses are going to the student unions, and four will now be here in the Federal Capital Territory.

“This is not all. Over 700 of these buses have already been ordered. These are the first sets we are giving out to symbolise the official commencement of this initiative of Mr. President.

“So, don’t say that you only have 64 buses to cater to the whole of this country. It’s a necessary first step by government.”

Idris argued that since CNG costs far less than petrol, Nigerians should expect to save 60 per cent on transportation costs when the initiative goes fully operational.

He explained: “You will spend far less to fuel it. Filling the two tanks you have seen here will cost you about N15,000, as against N72,000 for petrol. It’s a drastic reduction. The private sector is already contributing.

“This is beginning from those who need it the most; the working class will get this. But beyond that, everybody will feel the impact.

“It’s a promise that Mr president has kept to Nigerians, and we know that very soon, more of these buses will ply all the roads of this country.”

Asked about the possible hazard of having the gas cylinders positioned in the vehicle, Idris said: “Yes, we considered this. There is no risk of explosion. The cylinders themselves are bulletproof. There are no joints, meaning they are not welded at any joint or parts.

“So, they are intact. They are safe, and you would not expect to see any explosion happening. The safety of Nigerians and the buses were considered in the design and supply of these cylinders”.

Edun, who led the government delegation that included Idris, the Minister of Budget and Economic Planning Abubakar Bagudu, and the Minister of State for Youth Development Ayodele Olawande, stated that inflation has peaked and is now declining, thanks to the President’s determination to keep it under control.

“This significant event is a major step in the fight against inflation. We’ve had an initial spike in inflation. Now, it has peaked, and it is coming down.

“Mr President and the whole team are determined to ensure we keep inflation coming down. This is one of the major ways CNG-fueled transportation will reduce costs.

“CNG-fueled vehicles cost one-third of the petrol-fueled vehicle. So, instead of paying N50,000 to fill a tank, you’ll be paying N15,000. That’s a huge contribution towards fighting inflation and giving us lower costs.

“This also marks another important element of the President’s policies. It is transitioning to cleaner fuel, but most importantly, cheaper fuel for Nigerians.

“The emphasis is on mass transit, to intervene on the side of workers so that they have cheaper transport that helps them cope with the increased price level generally, which was an inevitable fallout of improving the economy,” said Edun.

Secretary-General of the Trade Union Congress, Mr. Nuhu Toro, expressed gratitude for the CNG buses but noted that the number provided is inadequate.

Toro said: “This step forward brings us closer to a future where workers and the planet benefit from such forward-thinking policies, which is commendable.

“However, while we deeply appreciate this donation, we must acknowledge a concern: the number of buses provided is not fully proportional to the needs of the workforce. Though appreciated, they are not enough to address the logistical challenges we face.

“With 36 states across the federation and a large population of workers under the TUC and the NLC, we urge the government to do more…expand this initiative, providing additional resources to ensure that every worker can benefit from this programme.”

The Head of International Relations of the Nigeria Labour Congress, Mr. Uchenna Ekwe, echoed a similar concern.

Ekwe said: “If we get more busses, the effect will translate immediately, and once it translates, you will know. If people start entering these buses and feeling the impact, they will shout about it in their neighbourhoods.”

National Association of the Nigerian Students (NANs) President Lucky Emonefe, expressed gratitude for the CNG busses and the student loan initiative, saying it highlighted the President’s commitment to the welfare of Nigerian students.

Experts say CNG-fueled vehicles offer a huge cost savings advantage, consuming only one-third of the fuel of petrol-powered vehicles.

This translates to significant savings for commuters, with fuel costs reduced by up to 66 per cent.

The initiative is part of the President’s policy to transition to cleaner, cheaper fuel for Nigerians, focusing on mass transit to support workers and help them cope with increased price levels.