FG budgets N225b for CNG rollout in 2025, commissions 64 buses

…Targets$75b private sector investment in CNG
…To rollout another 2000 tricycle Tuesday

The federal government on Sunday rollout 64 buses that will run on the compressed natural gas CNG, with a promise to raise provisions in the 2025 budget to N225b from the current N130b, in 2024 budget.

Businessday gathered that the 64 buses which represents Nigeria’s 64 years as an independent nation, was rolled out ahead of the October 1 Independence celebration coming up Tuesday.

Wale Edun, the minister of finance and coordinating minister of the economy disclosed this while falling off the distribution of 64 buses that will run on compressed natural gas CNG at the Presidential Villa, Abuja, on Sunday.

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Edun said the initiative is part of the government plans to harness abundant natural gas resources and reduce over dependence on petrol.

Wale Edun, Minister of Finance and Coordinating Minister of the Econom…the President had promised to intervene in the economy, create a microeconomic policy that will help to ease the hardship of the common man.

Edun who noted that the emphasis is on the mass transit to ease the prices of transportation, added that the action “signifies a major step in brining down inflation”

“The CNG vehicles cost 1/3 of the cost of petrol vehicles. Today, it is the CNG, tomorrow it could be helping farmers with fertilizer, seed and other farm implements, needed by them to produce more food,” he said.

The minister who stated that the government is working hard to increase investments in the CNG program, especially from the private sector, assured Nigerians that the government will not abandon Nigeria’s natural resources.

Mohammed Idris, the minister of information and national orientation, in his remarks, earlier, stated that the rollout of the buses was in fulfillment of President Bola Tinubu’s promise to members of the organised labour to ease public transportation and reduce the hardship faced by Nigerians following the removal of fuel subsidy.

He disclosed that the 64 buses were being released to commemorate the nation’s 64th independence anniversary, urging Nigerians to expect more of such buses very soon.

“Over 600 buses, 34,000 kits and 100 electric vehicles ordered by the federal government are on their way. These are just the initial efforts others are coming,” he said.

He disclosed that the federal government is targeting as much as 60% reduction in cost of public transportation as well as encouraging transition from fossil fuel to cleaner energy.

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Nuhu Toro, Secretary General of the Trade Union Congress TUC, speaking for the organised labour, commended the federal government for the efforts, but insisted that the number represents a far cry from the public demands, urging the federal government to do more within the shortest possible time.

“While we appreciate the Federal government for these buses, the number of buses is not enough, especially when considered against the number of the work force and other Nigerians who are currently affected by the high cost of transportation,” Nuhu Toro, the secretary general of the Trade Union Congress (TUC) said.

He also commended the government for the consequential adjustment to the N70,000 minimum wage and called on state to follow the initiative of the federal government.

“We remain hopeful that these are the first steps to the many things to expect from the government,” he added.

“We have always assured this government that Nigerians are easy to manage. Once we start uses the buses we will be talking about it.”

Michael Oluwagbemi, programme director / chief executive officer of the PCNGI, on his part, assured that the program has been able to move the nation forward, by increasing the conversion centers across Nigeria to 125.

He also assured that the PCNGI has designed a robust program that will attract as much as $75b private sector investment into the sector

He also disclosed that the programme will rollout a total of 2000 CNG propelled tricycle, next week, beginning from Abuja on Tuesday.

He also assured that safety measures have been taken into consideration.