In a move aimed at accelerating the adoption of Compressed Natural Gas (CNG) among commercial transporters, the Federal Government has announced plans to provide free conversion kits and installation services to members of key transport unions.
Announcing the initiative at a ceremony in Abuja, Engr. Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative (PCNI), highlighted that the initiative targets members of the National Union of Road Transport Workers (NURTW), National Union of Road Transport Owners (NATO), and Road Transport Employers Association of Nigeria (RETEAN).
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“The Conversion Incentive Programme is tackling the barrier for Nigerian commercial transport entities and operators to convert from PMS to gas,” Oluwagbemi explained. “For commercial operators that are unionized, they will get the kit for free, and installation will also be done for them for free.”
The government has partnered with five CNG kit conversion companies including Portland Gas, NIPCO, ABG Oil and Gas, Fix it 45, and NITT. These companies will facilitate the distribution of the conversion kits across the country.
“We have identified 123 kit conversion centres nationwide, and this programme will be financed from the palliative fund set up by President Bola Tinubu,” Oluwagbemi added.
In addition to unionized transport operators, ride-share operators such as Uber, Bolt, and others will receive a 50 percent discount on the conversion kits, along with free installation services.
“We have 20,000 conversion kits in stock and aim to convert about 300,000 vehicles annually,” Oluwagbemi stated, underscoring the government’s commitment to reducing transportation costs and promoting environmental sustainability.
Speaking at the event, stakeholders including Mr. Mohammed Bawa of ABG Oil and Gas and Comrade Aliyu Isa Ore, Acting President of NURTW, expressed gratitude to the Federal Government for the initiative. They emphasized that the adoption of CNG will not only lower transportation costs but also contribute to stabilizing food prices by reducing transport-related expenses.
The initiative marks a significant step towards achieving sustainable energy use in Nigeria’s transport sector, aligning with global efforts to reduce carbon emissions and promote cleaner energy solutions.