Tinubu’s N36bn CNG Initiative to save 40% on fuel costs

The Federal government has intensified its efforts to promote Compressed Natural Gas (CNG) as a cost-effective and sustainable alternative to Premium Motor Spirit (PMS), also known as petrol.

This initiative aims to reduce the high costs associated with petrol, which have ranged between ₦750 and ₦1000 per litre. One of the steps the Tinubu-led administration has taken to achieve this is the commissioning of 30,000 CNG-powered vehicles within the next 90 days.

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Michael Oluwagbemi, the Project Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative, announced this during the Park to Park CNG Mobilisation program at Ojota Park in Lagos recently.

Speaking at the event, Oluwagbemi emphasised the government’s commitment to making CNG a viable alternative fuel for transportation and reducing the financial burden on Nigerians.

“The initiative will see an investment of ₦36 billion, which will cover the cost of 30,000 CNG conversion kits,” he said. “These kits will be distributed free of charge nationwide within the next three months.”

He also said that each kit, including conversion costs, is valued at ₦1.2 million per vehicle, totaling ₦36 billion for the project.

Furthermore, the project director stated that, “The era of buying fuel at ₦750, ₦800, or ₦1000 per liter is over. We will start using the gas under our feet so that we can purchase it at ₦230 per kilogram.”

The CNG initiative is part of a broader directive from President Bola Tinubu, who has ordered all Ministries, Departments, and Agencies to procure CNG-powered vehicles. This move is intended to ease the economic impact of the recent fuel subsidy removal.

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The Nigerian National Petroleum Company Limited (NNPC) has also announced a strategic pivot towards CNG as a cheaper and more sustainable alternative to petrol.

According to NNPC, the use of CNG in automobiles can reduce fuel costs by 40 percent compared to petrol.

As Nigeria transitions to CNG, the government aims to reduce the financial burden on its citizens and promote a more sustainable energy future.

This bold move is expected to transform the transportation sector and provide a more affordable energy option for millions of Nigerians.