• Friday, June 21, 2024
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CNG initiative to cut petrol import spendings by $4.4bn annually–FG

FG engages stakeholders on CNG conversion modalities

The Federal Government is optimistic that the successful implementation of its Compressed Natural Gas (CNG) initiative will save the country at least $4.4billion from its total annual spendings on fuel importation.

This is as the Tinubu-led administration seek ways to foster sustainable energy solutions and reduce carbon emissions while also cushioning the impact of fuel subsidy removal, which has led to a significant increase in the price of PMS.

Read alsoNigerian Govt, stakeholders in talk over CNG conversion modalities

Speaking during the meeting of stakeholders in Abuja on Tuesday, Zayyanu Tambari, the coordinator of Regulatory, Compliance & Facilitation of PCNGI, said that efforts were ongoing to ensure that the vehicle conversion processes align with international standards.

According to Tambari, the government expects CNG to replace 20 percent of the current 50 million litres of petrol consumed in the country daily, adding that about $890 million investment would be required to develop the CNG infrastructure in the country.

He also explained that efforts were ongoing to ensure that that conversion processes aligns with international standards.

According to him, the initiative will ensure that conversion centers are properly accredited and licensed to operate, with qualified technicians, and standard conversion kits.

Read also:President Tinubu to commission Kia hybrid, CNG vehicle facility in Abuja

“We indeed plan to implement a system that ensures that only vendors that are converted using accredited and licensed accreditation centers with approved conversion kits are able to get gas at retail outlets. So that you cannot go to a fake conversion center or use substandard conversion kits. Even if you do so, you will not be able to buy gas anywhere.

“So, with this system in place, once you convert your vehicle at a conversion center that is duly accredited, you will be issued some kind of identification. We’re going to work out on the technology. There are different kinds of technologies that will enable you to identify that vehicle.

And once that vehicle goes to the retail outlets, let me say QR code for instance, then the attendants will now be able to check that vehicle and then confirm that that vehicle was converted in an accredited conversion center with approved conversion kits, and then the guy can buy his gas and move on.

He explained that working with the Standard Organization of Nigeria, Federal Road Safety Corp, and the National Automotive Design and Development Council, the program is going to be implemented using the Gas, Vehicle Monitoring and Surveillance system.

This according to him will ensure an end-to-end monitoring and control system for the autogas conversion and compliance in Nigeria.

Read also:CNG-powered vehicles will save Nigeria $2.5bn yearly- FG

“Now, we have some data here, but I think the most significant here is the fact that we plan to convert 1 million vehicles in the next 4 to 5 years. But at the rate at which we are working, I believe we will reach that timeline sooner than that projection.

“And what that will do, it will unleash a lot of economic opportunities, job creation in this country. Currently, we have 12 to 15 million vehicles on the Nigerian roads consuming either gas or diesel. And if we are able to move 1 million of those vehicles to gas alone, you can now see the salient effect on gas supply, gas infrastructure, service providers, technicians, conversion centers, the entire value chain, significant economic activity and opportunities will be unleashed.

“And that is the vision of Mr. President, to use CNG, to use gas, which we have in abundance in Nigeria, to create jobs and also to intervene in the transportation sector in such a way that the cost of transportation will go down,” he said.