FG offers free CNG kits to transport unions, aims for 50% fare reduction

In a strategic move aimed at accelerating the adoption of Compressed Natural Gas (CNG) among commercial transporters, the Federal Government has announced a groundbreaking initiative to provide free conversion kits and installation services.

This initiative targets members of prominent transport unions including the National Union of Road Transport Workers (NURTW), National Union of Road Transport Owners (NATO), and Road Transport Employers Association of Nigeria (RETEAN).

Speaking at the agreement signing ceremony with five CNG kit conversion companies in Abuja, Engr. Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative (PCNI), highlighted the government’s commitment to significantly reduce the cost of transportation.

“The Conversion Incentive Programme is addressing the cost barrier for Nigerian commercial transport operators to convert from PMS to gas,” Oluwagbemi stated.

“Under this programme, unionized commercial operators will receive the CNG kits free of charge, along with free installation services facilitated through certified conversion workshops.”

He further elaborated that the initiative aims to leverage a palliative fund established by President Bola Tinubu, emphasizing its role in subsidizing the conversion costs and operational expenses for transport operators.

The government has identified 123 conversion centres nationwide to facilitate the programme’s rollout, with immediate focus on activating five centres in Abuja.

Oluwagbemi underscored the inclusivity of the initiative, noting that ride-share operators such as Uber, Bolt, and others will also benefit from a 50 percent discount on the equipment cost and free installation services.

He assured that the payment for the conversion could be spread over time, easing the financial burden on operators.

Highlighting the economic impact of the initiative, Engr. Oluwagbemi projected that with 20,000 conversion kits currently available, the government targets to convert approximately 300,000 vehicles annually.

This, he believes, will not only reduce transportation costs by up to 50 percent but also positively influence the prices of goods and commodities, which are often affected by high transport costs.

At the event, stakeholders including Mr. Mohammed Bawa of ABG Oil and Gas, Comrade Aliyu Isa Ore of NURTW, and Zankyams Duniya of Bolt expressed gratitude to the Federal Government for launching the scheme.

They emphasized its potential to enhance economic efficiency, lower operational costs, and ultimately improve the standard of living for Nigerians.

With the launch of this ambitious initiative, the Federal Government aims to foster sustainable economic growth while promoting environmental sustainability through the widespread adoption of cleaner energy solutions in the transport sector.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.