Over 11,500 CNG Cars To Be Manufactured Locally As Tinubu Approves Compressed Natural Gas Initiative

… Targets Conversion of 55,000 Vehicles

President Bola Tinubu is targeting the conversion of 55,000 petrol-powered vehicles as he approves the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI).

The initiative also targets over 11,500 new CNG-enabled vehicles through local assembly and manufacturing, a move to ameliorate the impact of the fuel subsidy removal on transportation.

The development was contained in a statement signed by Ajuri Ngelale, the Special Adviser to the Tinubu on Media & Publicity.

The Presidency said, “This transformative initiative is poised 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, while simultaneously bolstering in-country manufacturing, local assembly and expansive job creation in line with the presidential directive.

“The landmark initiative, which comprises of a Comprehensive Adoption Strategy, will include the following: Empowering Workshops Programme w/ Nationwide Network of Workshops, Local Assembly and Job Creation as key points of emphasis with an initial focus on mass transit systems and student hubs in order to significantly reduce transit costs for the general populace in the immediate term.”

The development is coming a few weeks after the Nigerian Petroleum Company Ltd sealed a deal with NIPCO Gas Limited to develop Compressed Natural Gas stations across the country.

“In line with the PCNGI’s determination to ensure a seamless integration of CNG utility within the current midstream and downstream energy value chain to support its sustainability, the PCNGI will facilitate the provision of workshops across all geopolitical zones and states with essential kits and comprehensive training for newly employed staff, thus creating new opportunities for technical skill development and employment for Nigerians,” the Presidency said.

According to the plan, the new nationwide network of workshops that would be established through the initiative, would ensure widespread access and demand side utilization of CNG technology and CNG-related expertise.

This would facilitate smoother transitions for vehicle owners at the wider benefit of the Nigerian economy, it said.

Based on the plan, five strategic objectives will be achieved.

They are the development of new stakeholder-operated Intrastate Mass Transit systems built on CNG. Support for states to onboard new CNG buses as part of their Intrastate Mass Transit network (wholesale conversion, retro-fitting and new purchase) and the deployment of CNG buses through existing Private Mass Transit operators, including new financing programmes for operators through an innovative asset finance programme.

The others are to incentivize investors to invest in CNG processing, distribution and utilization by providing incentives for enhanced investment and partnership and deliver training and technology transfer to support the After-Sales Services and maintenance sub-industry to create sustainable jobs.

“President Tinubu’s focus on assembling CNG-enabled vehicles within the country will stimulate economic growth, create employment opportunities, and bolster the nation’s automotive manufacturing capabilities.

“The launch of this initiative also underscores this administration’s commitment to fostering a cleaner environment by reducing carbon emissions and promoting energy security through the utilization of domestic natural gas resources,” it added.