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CNG to Save Transportation Costs in Nigeria as FG slashes prices

By Yemi Olakitan

The Federal Government has announces on Monday that the price of CNG will drop to N230 per kilogram with the planned introduction of compressed natural gas buses.

According to Toyin Subaru, Special Assistant to the President on Special Duties and Domestic Affairs, Nigerians would be able to save two-thirds on transportation expenses thanks to this effort, which will also encourage the use of CNG as a fuel substitute.

In an effort to formalize a cooperation with the Nigerian Institute of Transport Technology and the FEMADEC group, among others, to facilitate sustainable transportation in Nigeria, the presidential adviser made the announcement to an audience of stakeholders’ on Sunday at the Bank of Industry headquarters in Abuja.

This coincides with the government’s intention to implement 11,500 gas-powered buses nationwide starting next week, to alleviate the nation’s transportation problems.

Subaru declared, “We don’t even need to import what we need to operate our vehicles now that we have this CNG plan in place. We have the gas here in Nigeria; it’s called CNG. Thus, the plan is simply to take the gas and use several truck stations to distribute it throughout Nigeria.

“We are assisting them in converting their vehicles so that they can simultaneously run on fuel and CNG. We’re going to create an app that will let you find the location of a CNG station. Instead of paying N680 a litre for fuel, we need to be able to get gas for our cars for N230 per kilogram. This ought to assist all Nigerians in saving roughly two-thirds of their transportation expenses.”

He continued by saying that by 2027, one million CNG cars would be driving on Nigerian roads.

Michael Oluwagbemi, the Presidential CNG Initiative’s Program Director, stated that the government plans to set up 1000 conversion workshops around the nation and that the program will help create over 50,000 employment and mitigate the impact of the elimination of subsidies.

“We want to jumpstart the CNG revolution by making 55,000 conversion kits immediately available to the Nigerian public,” stated Oluwagbemi, expressing the motivation behind the presidential CNG plan. Up until March 31, 2024, the palliative program will be in effect. In other words, officially, we’re supposed to roll out 55,000 in that amount of time.

“There’s a reason we’re here today, and naturally, we are somewhat limited in the amount of sessions we can offer. There are just seven working workshops in the entire nation. We think that in order to accomplish our aim, we will need roughly 1000.

“We’re launching our first collaboration today because the sub-sector will have four partners and more investors, one of which is the national Nigerian Institute of Transport Technology, which will launch seven more workshops over the course of the following 14 days.

“We think they can do more, but in order to convert those 55,000 vehicles, we need to double what they have in 14 days, and then we can start doubling after that. That way, we can get closer to our goal of having workshops everywhere in Nigeria that has access to CNG. We want to reach one million automobiles by 2027, which will enable Nigeria to control transportation inflation and save almost $20 billion over the course of ten years.”

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