- Nigerian presidency said Nigerians will be able to fuel their vehicles for N230 per kilogram
- This is about two-thirds less compared to the cost of petrol which is N680 per litre
- It added that the conversion from petrol to gas will create over 50,000 employment for Nigerians
Compressed Natural Gas (CNG) will cost N230 per kilogram when gas-powered buses are introduced, Toyin Subaru, Special Assistant to the President on Special Duties and Domestic Affairs has said.
This follows an earlier report by Legit.ng that as part of its efforts to address the nation's transport issues, the government is scheduled to roll out 11,500 gas-powered buses.
This was disclosed during a stakeholders' meeting on Sunday, October 29, 2023, in Abuja at the Bank of Industry headquarters, according to Punch report.
The purpose of the meeting was to formally establish a relationship with the FEMADEC group and the Nigerian Institute of Transport Technology in order to promote sustainable transport in Nigeria.
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Nigerians to save two-thirds on transportation expenses
According to Subaru, the programme will encourage Nigerians to switch to compressed natural gas (CNG) instead of petrol and help them save two thirds on transportation expenses.
“Now, with this CNG plan, we don’t even have to import what we need to operate our vehicles. It is called CNG and we have the gas here in Nigeria. So, the idea is just to take the gas to distribute it across Nigeria via different truck stations.
“Most gas is not CNG enabled yet and what we are doing is to help them convert their cars so you can use petrol and CNG at the same time.
“We are going to develop an app that will enable you locate where a CNG station is located. We should be able to buy gas for our cars at N230 per KG as against the cost of petrol which is N680 per litre. This should help every Nigerian save about two-thirds of their transport cost.”
He said that by 2027, one million CNG cars would be driving on Nigerian roads.
Michael Oluwagbemi, the Presidential CNG Initiative's Programme Director, stated that the government plans to set up 1000 conversion workshops around the nation and that the programme will help create over 50,000 employment and mitigate the impact of the elimination of subsidies.
According to Oluwagbemi, the President's October 1st speech stated that the objective of the Presidential CNG initiative is to provide the Nigerian public with 55,000 conversion kits right away, enabling them to kickstart the CNG revolution.
The president stated that the palliative initiative will last until March 31, 2024. In other words, he said 55,000 should be deployed in that amount of time.
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“We have a goal, one million vehicles by the year 2027, and that allows Nigeria to save about $20bn in ten years and also allows us to manage transport inflation.
Meanwhile, Legit.ng had reported that Innoson Motors unveiled its fleet of gas-powered trucks, buses, and cars at its Nnewi factory.
FG removes VAT on diesel for six months, says gas-powered buses coming soon
As part of measures to ease the impact of subsidy removal on Nigerians, the Nigerian government says it will waive the Value Added Tax (VAT) on diesel for the next six months, Legit.ng reported.
The waiver is part of the deal reached between the government and the Nigerian Labour Congress (NLC) leadership and the Trade Union Congress (TUC) at the end of the meeting held at the State House on Sunday, October 1, 2023.
At the end of the four-hour meeting with the labour leaders, Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, said the government and the labour leaders had reached some agreements.