Nigeria is poised for a groundbreaking shift in its transportation sector as the Federal Government announces plans to roll out 2,700 Compressed Natural Gas (CNG) powered buses and tricycles by May 18, 2024. Spearheaded by President Bola Tinubu's administration, this initiative aims to deliver cheaper, safer, and more environmentally friendly energy solutions.
The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, revealed that the government is on track to establish 100 conversion workshops and 60 refueling sites across 18 states by the end of 2024. These efforts mark a significant milestone in Tinubu's vision for a modernized transportation infrastructure.
The inception of the Presidential CNG Initiative in October 2023 paved the way for Nigeria to embrace natural gas as a primary source of energy, particularly for mass transit. With a budget allocation of N100 billion, the initiative aims to purchase 5,500 CNG vehicles, including buses, tricycles, and electric buses, alongside over 20,000 conversion kits.
To facilitate the production and assembly of these vehicles, new plants have been established along key transportation routes. The creation of a plant on the Lagos-Ibadan Expressway for tricycle assembly signifies a pivotal step towards local manufacturing and job creation. Furthermore, collaboration with private sector entities such as Brilliant EV demonstrates a commitment to innovation and sustainable mobility solutions.
As part of the initiative, tax and duty waivers have been granted to incentivize private sector investment in refueling stations and conversion centers. Notably, over $50 million in investments have been secured, highlighting the industry's confidence in Nigeria's transition to cleaner energy.
To ensure safety and compliance, stringent standards and regulations have been developed, with a focus on CNG conversion processes. Additionally, the initiative aims to sell subsidized conversion kits to facilitate the transition of petrol-powered vehicles to CNG, thereby reducing the cost of public transportation.
Key players in the downstream sector, including NIPCO, BOVAS, and MRS, are actively involved in the establishment of refueling stations and conversion centers nationwide. The Nigerian National Petroleum Corporation (NNPC) Limited has also pledged its support, further solidifying the commitment of both public and private stakeholders to the success of the initiative.
Looking ahead, the Presidential CNG Initiative is poised to revolutionize Nigeria's transportation landscape, with a projected target of one million gas-powered vehicles on the roads by 2027. Through collaboration with industry stakeholders and the adoption of innovative technologies, Nigeria is paving the way for a sustainable and prosperous future in transportation.
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