Federal Government Set to Roll Out Compressed Natural Gas Initiative

The Bola Tinubu-led Federal Government is set to roll out the first set of critical assets for the deployment and launch of the Compressed Natural Gas (CNG) initiative.

This announcement was made by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a statement released on Sunday in Abuja.

According to Onanuga, the CNG initiative aims to deliver cheaper, safer, and more climate-friendly compressed natural gas, especially for mass transit, following the removal of the fuel subsidy on May 29, 2023.

President Tinubu had launched the Presidential CNG Initiative in October last year and approved the setup of a committee led by oil and gas expert, Michael Oluwagbemi.

The 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. Additionally, funds were allocated to spur the development of CNG refilling stations and electric charging stations.

Onanuga stated, “The Federal Government, as part of the many intervention programmes to reduce the burden of the increase in pump prices on the masses, provided N100 billion (part of the N500 billion palliative budget) to purchase 5,500 CNG vehicles (buses and tricycles), 100 Electric buses, and over 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.

“The committee, being led by Michael Oluwagbemi, 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.”

He further added that the government had partnered with the private sector, which had invested over $50 million in refuelling stations, conversion centres, and mother stations.

The initiative, aimed at reducing the use of more expensive diesel and Premium Motor Spirit (PMS), will gradually phase out these fuels as vehicles, including trucks, transition to natural gas.

Over 600 buses are targeted for production in the first phase, which is expected to be accomplished this year. Additionally, thousands of tricycles will be assembled, with the first batch of 2,500 expected before May 29, 2024.

The government intends to provide thousands of conversion kits for petrol-powered buses and taxis at subsidized rates, especially for commercial vehicle drivers, to reduce the cost of public transportation.

NIPCO and BOVAS are among the private sector collaborators, setting up refilling services and conversion centres. NNPC Limited is also joining the initiative, announcing locations for CNG refilling and conversion centres nationwide.

The initiative, in collaboration with 22 other agency partners, will deliver 80 Natural Gas Vehicle Conversion and Associated Appliances Standards for the country. Additionally, the MYCNG.NG App will be launched for proper monitoring, showing CNG conversion and refuelling sites in the country.

Before the end of the year, the initiative aims to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states.