• Thursday, December 07, 2023
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FG Launches 7 CNG conversion centres, waives VAT on purchases

Compressed Natural Gas

The Federal Government through the Presidential Compressed Natural Gas Initiative (PCNGI) Steering Committee, on Friday said seven CNG conversation centres have been established across the country.

Zacch Adedeji, Chairman of the Committee made this known during the launch of the initiative with the handing over of two CNG buses to Olusesan Adebiyi, the State House, Permanent Secretary, at the presidential villa, Abuja.

Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), represented Adedeji, who is also the interim Chairman of the Federal Inland Revenue Service (FIRS).

He said that the establishment of the CNG conversion centres demonstrated President Bola Tinubu’s administration’s determination to lead the country’s energy revolution.

Adedeji stated that more CNG conversion centres would be constructed across the country, calling the endeavour a critical milestone in the country’s road toward a cleaner and more prosperous future.

He went on to say that the effort was about more than just talking about cars; it was also about creating jobs.

Adedeji said that FIRS would waive VAT on CNG purchases and seek duty exemptions along the value chain.

He stated that the goal was to create a sustainable future by utilising the country’s cheap and clean energy supply. “It also reflects Tinubu’s dedication to environmental sustainability and economic progress.”

“This CNG buses to be handed over to the State House are the vanguard of a future, where energy is cleaner and more economical. This project is not only about conversion of vehicles but also about generating employment opportunities. It demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth.

“Moreover, it is my pleasure as your Chief Tax Officer, a position I hold alongside as Chairman of this initiative, to announce that we will be waiving the Value Added Tax on CNG purchases as well as seeking duty waivers for value-chain.

“The goal is to build a sustainable future, leveraging our own cheap and clean energy source; gas,” he said.

Speaking at the event, AbdulRahman AbdulRazaq, Chairman of the Nigeria Governors Forum (NGF) and Governor of Kwara State, said the event marked a new chapter in Nigeria’s history as the country continues its gradual shift from petroleum to gas-powered cars.

He said that universities would be the first to benefit from the buses, and that all state governments would participate.

He said, “For those of us who were in the gas industry, this is what we have been calling for decades.

“Nigeria is a gas country, not a crude oil country, 70 percent or so of our hydrocarbon is gas. So why are we investing all our time and energy in crude oil?

“Today is a turning point for us that President Tinubu has taken this bold decision to move from petroleum to gas. This is the first step in a major change to come.”

Meanwhile, Chinedu Oguegbu, Managing Director of OMAA Motors, a Nigerian automotive manufacturer, thanked Tinubu for the effort.

“Aside connecting with the energy transition, we are also deepening industrialisation by patronising made in Nigeria vehicles.

“This is going to go beyond the natural gas value chain. This is going to create thousands of jobs for the youths,’’ he said.
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