The Federal Government (FG) yesterday, disclosed that investors have mobilised $50 million in the past six months to support infrastructure development for Compressed Natural Gas (CNG) adoption in the transportation sector.
Additionally, the government said it is also offering a 50 percent discount on conversion kits, priced between N1.2 million and N1.5 million to encourage transporters to switch to CNG, which can save up to 77 percent in energy costs.
Speaking at a stakeholders meeting on the benefits of adoption of CNG as a sustainable and economical energy alternative for transporters, the Programme Director, Presidential Initiative on Compressed Natural Gas Programme, PCNGI, Mr. Michael Oluwagbemi, said the government is also working with banks to provide funds for the programme.
The forum which was organised by Portland Gas and PCNGI, had the theme: Driving sustainable transportation: Accelerating CNG adoption in Nigeria.
Represented by Mr. Tosin Coker, Oluwagbemi said the government will, in the coming days, roll out buses and tricycles powered by CNG to support public transportation in Abuja.
According to him, “In December 2023, we hosted our first investor forum, which saw tremendous participation from companies now investing in the sector. I am pleased to report that well over $50 million has been mobilised directly by the sector since then more than any amount mobilised in the last ten years combined. We are also enabling ordinary Nigerians, particularly transport operators, to convert their vehicles.
“Last month, on May 29, we announced the Conversion Incentive Program, making it easier for Nigerians to adopt CNG. This effort is supported by private sector partners, development funds and banks, all eager to finance this transformative initiative.
Speaking on the benefits of switching to CNG fuel, the Managing Director, Portland Gas Limited, Mr. Folajimi Mohammed, noted that besides being cheaper than petrol and diesel, CNG provides more mileage for transporters and vehicle owners.
Mohammed explained that the technology allows for the retention of the old petrol/diesel system, allowing owners to switch fuel when needed.