Business
Fuel Hike: FG Expands Distribution Of CNG Conversation Kits To States
The Federal Government through the Presidential Compressed Natural Gas Initiative (P-CNGi), yesterday boosted the distribution of auto gas conversion kits across states in Nigeria.
This is geared towards accelerating conversion by commercial and private vehicle owners as government moves to achieve it’s target on new automotive fuel transition.
Speaking to the media on Friday, at NIPCO- CNG facility in Ogun State, a representative of the P-CNGi, Mr. Moses Onate, said about 10,000 kits are being moved to Abuja, Kaduna, Lagos, Oyo states as following interventions by government to make the kits available for vehicles conversation.
According to him, “The kits were loaded from a NIPCO warehouse in Ibafo along the Lagos-Ibadan expressway to various states. The intent is to provide a cheaper and cleaner alternative to petrol.
“The Presidential Compressed Natural Gas Initiative (PCNGi), which was launched under President Bola Ahmed Tinubu’s directive, is set to deliver wide-reaching benefits to Nigerians by significantly cutting fuel costs.
“About 10,000 conversion kits are being distributed to states with some kits going to Abuja, Kaduna, Lagos, Ogun, among others states.”
He added that the introduction of CNG as a fuel source aligns with the government’s drive towards energy diversification and is designed to bring immediate relief to Nigerians, especially those who depend on transport for their livelihood.
Onate, expressed excitement at the level of enthusiasm by the public since the exercise commenced.
Speaking also, an Engineer with NIPCO, Nwaodu Austin Chinedu, confirmed that the company’s warehouse is consistently stocked and distribution has been going on smoothly across the country.
Chinedu, said the partnership between NIPCO and the Agency has provided the public the opportunity to facilitate vehicle conversion opportunities.
The committee is targeting the conversion of 1 million vehicles through the distribution of free CNG conversion kits to commercial vehicles involved in transporting people, food and goods in line with Tinubu’s directive.
Already, the government had earlier approved the rollout of CNG for vehicles at N230 per litre.
It will be recalled that the P-CNGi had earlier signed an MoU with conversion workshop owners to convert one million commercial transport petrol vehicles to CNG by 2027.
The ceremony which held in Abuja included partners like NIPCO Gas, Portland Gas Ltd., Fix It 45, ABG Oil, and the Nigeria Institute of Transport Technology (NITT).
Mr. Michael Oluwagbemi, P-CNGi CEO, stated that the program aims for 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, expanding nationwide.
Ride-sharing operators like Bolt and Uber will get a 50 per cent discount on conversion equipment and free installation, with the government covering the rest and offering instalment payments.