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FG to Offer Free Conversion of Commercial Vehicles to CNG; See Details

Published by admin on July 12th, 2024.

FG to Offer Free Conversion of Commercial Vehicles to CNG; See Details

By Okechukwu Nnodim

CNG Motor

The Federal Government announced on Thursday that it will provide free conversions of petrol and diesel-powered commercial vehicles to run on Compressed Natural Gas (CNG). This initiative was revealed during an agreement signing with companies responsible for these conversions, held in Abuja.

Michael Oluwagbemi, the Programme Director and Chief Executive of the Presidential Compressed Natural Gas Initiative (P-CNGI), highlighted that this program targets various commercial transport unions, including the Road Transport Employers Association of Nigeria, the National Union of Road Transport Workers, and the Nigerian Association of Road Transport Owners.

“We’ve partnered with five companies here in the FCT to launch the Conversion Incentive Programme,” Oluwagbemi said. “This initiative addresses the cost barrier for Nigerian commercial transport operators looking to switch from petrol to CNG. Commercial operators who are unionized under RTEAN, NARTO, and NURTW will receive a 100 percent discount, covering both the conversion kits and installation.”

Oluwagbemi mentioned that certified conversion workshops, 123 of which have been identified so far, will carry out the installations. “We have five workshops in Abuja, and as the program expands, more will be activated nationwide,” he added.

The second group of beneficiaries includes ride-share operators. “Drivers working with Uber, Bolt, Lag-Ride, Move, and similar services will get a 50 percent discount on equipment, with free installation. This means no upfront costs on the first day,” Oluwagbemi explained. Agreements with companies like Bolt and Lag-Ride are already in place, and more are expected to join soon.

The initiative aims to make transportation more affordable. “Over the next three months, we will distribute 20,000 conversion kits across 25 states with CNG capacity. This is part of the palliative initiative funded last year, with additional funds from the National Assembly for this year,” Oluwagbemi said.

The agreement signed requires that the savings from these conversions be passed on to consumers. “We have a strong monitoring mechanism to ensure compliance,” Oluwagbemi noted. “The Nigerian gas vehicle monitoring system will track the conversions, ensuring savings are transferred to ordinary Nigerians.”

The programme is expected to significantly reduce transportation costs, contributing to the overall goal of economic relief and environmental sustainability.