The Federal Government through the Presidential Compressed Natural Gas (CNG) Initiative Steering Committee, on Friday said 7 CNG conversation centres have been established in the country.
This was made known by the Chairman of the Committee, Mr Zacch Adedeji, during the launch of the much awaited CNG initiative with the handing over of 2 CNG buses to the State House, Permanent Secretary, Mr Olusesan Adebiyi, at the presidential villa, Abuja.
Adedeji, who is also the acting Chairman, Federal Inland Revenue Service (FIRS), was represented by Mr Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
He said the establishment of the CNG conversion centres symbolised the commitment of President Bola Tinubu administration to spearhead energy revolution in the country.
Adedeji said more CNG conversion centres would be established across the country, adding that the effort was a pivotal step in the country’s journey towards a cleaner and economically sound future.
He added that the project was not only about the conversation of vehicles but also creating employment opportunities.
VAT waiver for CNG purchases
Adedeji disclosed that FIRS would waive Value Added Tax on CNG purchases and seek duty waivers for the value chain.
He said that the aim was to build a sustainable future leveraging the nation’s cheap and clean energy source.
According to him, it also demonstrates Tinubu’s commitment to environmental sustainability and economic growth.
- He said, “This CNG buses to be handed over to the State House are the vanguard of a future, where energy is cleaner and more economical.’’
Adedeji appreciated the President for his support and to all those who played a part in the project.
- He said, “I’m pleased to announce that there are currently seven conversion centres in Nigeria and the government is actively working to establish more of them. These plans will be rolled out, starting this afternoon, by the initiative.
- “This project is not only about conversion of vehicles but also about generating employment opportunities. It demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth.
- “Moreover, it is my pleasure as your Chief Tax Officer, a position I hold alongside as Chairman of this initiative, to announce that we will be waiving the Value Added Tax on CNG purchases as well as seeking duty waivers for value-chain.
- “The goal is to build a sustainable future, leveraging our own cheap and clean energy source; gas.’’
Turning point
Speaking at the occasion, the Chairman, Nigeria Governors Forum (NGF) and Governor of Kwara State, AbdulRahman AbdulRazaq, said the event marked a new turn in the history of Nigeria as it begins gradual transition from petroleum to gas powered vehicles.
He said that Universities would be the first beneficiaries of the buses, adding that all state governments would key into it.
- He said, “For those of us who were in the gas industry, this is what we have been calling for decades.
- “Nigeria is gas country not a crude oil country, 70 per cent or there about, more of our hydrocarbon is gas. So why are we investing all our time and energy in crude oil?
- “Today is a turning point for us that President Tinubu has taken this bold decision to move from petroleum to gas. This is the first step in a major change to come.”
On his part, Mr Chinedu Oguegbu, the Managing Director, OMAA Motors, a Nigerian automobile manufacturer, expressed gratitude to Tinubu for the initiative.
- He said, “Aside connecting with the energy transition, we are also deepening industrialisation by patronising made in Nigeria vehicles.
- “This is going to go beyond the natural gas value chain. This is going to create thousands of jobs for the youths.’’
