The Federal Government, on Friday, launched the Compressed Natural Gas, CNG, Initiative with the handing over of two CNG-fuelled buses to the management of the State House.
At the official launch of the initiative at Presidential Villa, Abuja, Chairman of the Presidential Compressed Natural Gas Initiative (P-CNGi), Mr. Zacch Adedeji, performed the handing over ceremony.
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He disclosed that the launch also involved the opening of seven pilot conversion centres nationwide.
Adedeji, who is also the Chairman of the Federal Inland Revenue Service, FIRS, further stated that the government had waived the Value Added Tax, VAT, on CNG purchases as well as seeking duty waivers for value-chain.
Adedeji was represented by the Chief Executive Officer of the Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Mr Farouk Ahmed.
He said that plans were underway for the government to establish multiple conversion centres across the country in the next two weeks.
According to him, “I’m pleased to announce that there are currently seven conversion centres in Nigeria. And the government is actively working to establish more of them. These plans will be rolled out, starting this afternoon, by the initiative.
“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 chairmanship 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.
Adedeji emphasised that the delivery of the CNG project demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth in Nigeria.
He implored Nigerians to consider the buses as a symbol of a new beginning, “a journey towards the future, where the power of tomorrow starts today.
“Let this be a beacon for our country, Nigeria, and an inspiration to the world.”
The Committee Chairman stressed that the buses running on CNG are not just a technical achievement, but a symbol of President Tinubu’s administration’s commitment to spearheading an energy revolution.
The Chairman of the Nigeria Governors’ Forum (NGF), AbdulRahman AbdulRazaq, said Nigeria is the eighth-largest gas-producing nation in the world.
“And with 70 percent of its hydrocarbon gas possession, will strengthen the nation’s gradual transition from petrol-powered vehicles to gas–powered transit vehicles.”
AbdulRazaq, who is the governor of Kwara State, called on the private sector to invest in the CNG Bus programme.
He emphasised that universities in Nigeria will be the first beneficiaries of the buses and all state governments will also key into the program
He said, “This is the first major change to come. We all know that apart from having abundant gas resources, I think number eight in the world in gas reserves, gas is a cheaper means of transportation and cheaper means of energy.
“I remember former President Obasanjo established the Olokola Free Trade Zone because he wanted that zone to be powered by gas solely.
“So, as we transit forward, I encourage the private sector to invest in this gas programme.”
Project Director of the Presidential CNG Initiative, Engr. Micheal Oluwagbemi disclosed that state governments have already indicated investment interest in the CNG Buses.
He mentioned that the Rivers State Government has already acquired a good number to ease the transportation challenges of the state.
Speaking on the cost of conversion, Oluwagbemi revealed that the current cost of conversion varies from the model and type of vehicle.
He added that the President has ensured that as part of P-CNGi, the committee will incentivize the cost for the Nigerian populace.