President Bola Ahmed Tinubu has established the Presidential Compressed Natural Gas Initiative (PCNGI).
This is according to a news report from the NTA News Network. The purpose of the initiative is to revolutionize the transportation landscape in the country, targeting over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles.
The initiative will also boost local manufacturing and assembling of conversion kits while creating jobs for the country’s populace.
According to the NTA, the PCNGI comprises a comprehensive adoption strategy including:
- Empowering Workshops Program/Nationwide Network of Workshops throughout all geopolitical zones and states
- Local Assembly
- Job Creation
These will be key points of emphasis with an initial focus on mass transit systems and student hubs to significantly reduce transit costs for the general populace in the short term.
The PCNGI will also provide essential kits and comprehensive training for newly employed staff, thereby creating new opportunities for technical skill development and employment for Nigerians.
The nationwide network of workshops, to be established through the initiative, would ensure widespread access and demand side utilization of CNG technology and CNG-related expertise, thereby facilitating smoother transitions for vehicle owners for the wider benefit of the Nigerian economy.
Under the PCNGI, the following strategic objectives will be achieved:
- Support for states to onboard new CNG buses as part of their Intrastate Mass Transit network (wholesale conversion, retrofitting and new purchase).
- The deployment of CNG buses through existing Private Mass Transit operators, including new financing programs for operators through an innovative asset finance program.
- Incentivize investors to invest in CNG processing, distribution and utilization by providing incentives for enhanced investment and partnership.
- Deliver training and technology transfer to support the After-Sales Services and maintenance sub-industry to create sustainable jobs.
The Backstory
Due to the wider impact of fuel subsidy removal, President Tinubu recently launched a CNG plan that will offer cheaper alternatives to Nigerians as fuel prices are currently between N615 to N620 and higher in some cases. During his nationwide broadcast on July 31, the president said:
- “Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made a provision to invest N100 billion between July 2023 and March 2024 to acquire 3000 units of 20-seater CNG-fueled buses.
- “These buses will be shared to major transportation companies in the states using the intensity of travel per capita. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.”
