Food Prices to Fall as FG Begins Deploying CNG-buses, Inaugurates Conversion Centres

Food Prices to Fall as FG Begins Deploying CNG-buses, Inaugurates Conversion Centres

  • The federal government has commenced the process of deploying buses and tricycles that run on compressed natural gas
  • It plans to set up 100 conversion workshops and 60 refuelling stations throughout 18 states before the year-end
  • The programme director said the Nigerian CNG industry has a potential worth of over $10 billion

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Starting in Ilorin, the capital of Kwara State, the Federal Government has begun deploying buses and tricycles that run on compressed natural gas.

FG begins deploying CNG-buses
The federal government said it planned to deploy 60 refuelling sites and 100 conversion workshops throughout 18 states. Photo credit: NurPhoto
Source: UGC

President Bola Tinubu had earlier announced that the Presidency was prepared to introduce roughly 2,700 CNG-powered buses and tricycles.

Punch reported that the Federal Government planned to deploy 60 refuelling sites and 100 conversion workshops throughout 18 states before the end of 2024.

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Project now launched

Governor Abdulrahman Abdulrazak launched the initiative in Ilorin, Kwara State, on Wednesday, May 28, according to Bayo Onanuga, the Special Advisor to the President on Information and Strategy.

He said:

“CNG buses and tricycles were also unveiled. The CNG vehicle assemblers have begun the rollout, beginning from Ilorin.
“The inauguration began today in Ilorin. It started with a conversion centre before they unveiled some CNG buses and tricycles. They have not given a date for Abuja. But the process started today.”

The Presidential Compressed Natural Gas Initiative's Chief Executive and Program Director, Michael Oluwagbemi, stated that the Nigerian CNG industry has a potential worth of over $10 billion.

On the expected growth rate, Oluwagbemi said:

“We expect a 1,000 per cent growth rate this year and YoY (year-on-year) average of 100-200 per cent growth rates in the next five years.”

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In addition to generating jobs, he claimed that introducing CNG vehicles would have a special impact on food prices in Nigeria by reducing food inflation.

When asked which other economic sectors the effort might affect, he replied that lower fuel prices for transportation would limit the increase in food prices.

“Other areas including upstream activities in oil and gas will benefit from more demand and even overall job creation and supply of gas will drive industrialisation.”

Manufacturing company set to produce 30,000 buses

Legit.ng reported that Nigeria’s indigenous vehicle manufacturer and pioneer CNG-vehicles maker, Innoson Vehicles Manufacturing Company, has built a new multi-billion naira facility to begin making various buses and heavy-duty trucks with engines running on CNG.

The plant can produce about N30,000 vehicles yearly and is expected to be commissioned soon.

Innocent Chukwuma, the chairman of Innoson Group, said in a statement that the company is working with the University of Nigeria Nsukka (UNN) and plans to build a plant that will produce tractors and other farm equipment.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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