FG Launches Presidential Compressed Natural Gas Initiative
In a move to ease the burden of fuel subsidy removal and promote a cleaner energy future, the federal government has launched the Presidential Compressed Natural Gas Initiative (PCNGI) and handed over two CNG-fuelled buses to the State House.
The initiative, which was officially flagged off on Friday at the State House in Abuja by Chief of Staff to the President, Femi Gbajabiamila, is expected to see over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing petrol-powered vehicles deployed nationwide.
Speaking at the handover ceremony, the Chairman of the Presidential CNG Initiative Steering Committee, Zacch Adedeji, represented by the Chief Executive Officer of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, disclosed that the government has waived Value Added Tax (VAT) on the purchase of CNG buses.
Adedeji described the buses as a symbol of the Tinubu administration’s commitment to spearheading an energy revolution in the country.
Project Director of the Presidential CNG Initiative, Engr Michael Oluwagbemi, revealed that state governments have already indicated interest in investing in the CNG buses.
On the cost of converting vehicles to CNG, Oluwagbemi explained that the current cost varies depending on the model and type of vehicle. However, he added that the president has directed the committee to incentivize the cost for the Nigerian populace as part of the PCNGI.
The launch of the PCNGI is a significant step towards reducing Nigeria’s reliance on imported fossil fuels and improving air quality. It is also expected to create jobs and boost the local economy.