President Bola Tinubu has said that the Federal Government is ready to assist the nation’s 36 states and Federal Capital Territory (FCT) to acquire Compressed Natural Gas (CNG) buses.
Tinubu gave the assurance in Abuja on Tuesday morning while presenting Nigeria’s 64th Independence speech.
According to President Tinubu, transitioning to the use of CNG buses for public transportation will ensure cheaper transport costs for Nigerians.
It is also part of the government plans to harness abundant natural gas resources and reduce over dependence on petrol.
According to him, the acquisition CNG buses for public transportation is part of Nigeria’s energy transition programme, which is currently on course.
“We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players,” Tinubu said.
Read also: We have reduced the debt service ratio by 29% in one year – Tinubu
The President Tinubu-led administration started promoting Compressed Natural Gas Initiative after the removal of petrol subsidy led to the increase in the pump prices of petrol from then N195/litre to about N898/litre depending on the marketer and state.
CNG initiative aims to reduce the high costs associated with petrol by driving the adoption of alternative source of energy to achieve cost-effective transportation system.
BusinessDay reports that the Federal Government allocated N130 billion in 2024 budget with plans to expand the allocation to N225 billion in the 2025 budget.
It is estimated that CNG-powered vehicles cost one third of the cost of petrol vehicles.
Two days ago, Wale Edun, minister of Finance and Coordinating Minister of the Economy, said that over 600 buses, 34,000 kits and 100 electric vehicles ordered by the federal government are on their way.
Meanwhile, the initiative is designed to attract as much as $75 billion private sector investment into the transportation sector.
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