• Saturday, June 15, 2024
businessday logo

BusinessDay

Infrastructure Bank, FEMADEC to roll out 500 CNG buses

The Infrastructure Bank (TIB) Plc and FEMADEC Group have announced a strategic alliance to introduce 500 Compressed natural gas (CNG) buses in Nigeria within the next five years.

The partnership will see them commence an initial batch of 50 buses in the forthcoming year- a proposal which stands poised to promote a sustainable transportation system in the country, especially in the face of the recent subsidy removal.

According to the Infrastructure Bank, the partnership seamlessly aligns with its sustainability objectives and echoes the relentless endorsement of the government’s net-zero and climate change agenda.

It equally represents a significant stride towards a more ecologically aware future for Nigeria’s transportation sector and highlights the shared commitment of both partners to sustainable advancement and progress.

It also signifies a notable achievement in Nigeria’s quest for cleaner energy alternatives.

“The preliminary offer extended by TIB lays a solid foundation for the expansion of FEMADEC Group’s CNG bus fleet. With plans to introduce 500 CNG buses within the next five years, commencing with an initial batch of 50 buses in the forthcoming year, this proposal stands poised to instigate significant change.

“FEMADEC Group’s strides in operating Compressed Natural Gas (CNG) buses, including the existing fleet of 20 CNG buses under LAMATA, underscore their unwavering dedication to ecologically sound solutions, a commitment predating the fuel subsidy removal.

“Their leadership within the CNG value chain is undeniable, and the new alliance with TIB underscores their foresight,” notes the Bank, with has the mandate to foster the rapid development of infrastructure across the country.

The Bank’s aspiration to champion Nigeria’s infrastructure progress is evident in its endorsement of pivotal initiatives like this, yielding expansive positive impacts on the environment and society.

According to the Bank, the acceptance of the proposition by FEMADEC Group, championed by Fola Akinnola, the Group CEO, is a testament to their zeal and dedication to the alliance.

The endeavour is primed to redefine Nigeria’s public transportation landscape, offering dependable, cost-effective, and ecologically conscious travel alternatives for citizens, while harmonizing with the nation’s broader sustainability ambitions, the Bank stated.

With a resolute mission to nurture economic growth and enrich the quality of life, the Bank assured of its commitment to transformative undertakings which serve as a beacon for the industry, setting an exceptional precedent.