Transport Cost to Crash as Tinubu Announces New Subsidy for Vehicle Owners

Transport Cost to Crash as Tinubu Announces New Subsidy for Vehicle Owners

  • Plans to subsidise CNG vehicle conversion kits for road transport union members by 50% have been announced by the federal government
  • This is part of plan to convert 1 million vehicles from PMS to CNG by 2027 to provide cleaner and cheaper options
  • To implement the conversion incentive scheme, the federal government plans to purchase more than 20,000 conversion kits journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The federal government has announced plans to provide road transport union members with a 50% subsidy on compressed natural gas (CNG) vehicle conversion kits.

FG moves to crash transport cost in Nigeria by subsidising CNG vehicle conversion kits
Nigerian moves to subsidise CNG vehicle conversion kits for transport union members in the country . Photo Credit: PIUS UTOMI EKPEI
Source: Getty Images

This is in line with the government's goal of converting one million PMS vehicles to compressed natural gas (CNG) by 2027, according to Engineer Michael Oluwagbemi, programme director and chief executive officer of the presidential initiative on CNG.

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Speaking on Tuesday, June 11 in Kaduna at the presidential initiative-organised Northern stakeholders engagement, Oluwagbemi stated that the federal government needs to acquire more than 20,000 conversion kits, which will be promptly implemented for the conversion incentive scheme.

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He said:

“We are launching what we call the Conversion Incentive Programme, with members of the NURTW, RTEAN, and NARTO as our immediate focus. This is because they are the operators in the road transport sector providing 90 per cent of the transportation in the country to members of the public.”
“We will be making the conversion kits available to them at a 50% discount, and we are also ensuring that the installation cost is free. We are already negotiating with our partners, who will initiate that project next week.”

Eight conversion centres in place

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According to a Vanguard report, Oluwagbemi said eight conversion centres in four states — Kwara, Lagos, Federal District, and Rivers— have already been picked by the kits to serve as the program's test sites.

He added that the programme will begin to spread to the other 120 conversion vents found throughout the nation.

In his remark, Uba Sani, Kaduna state governor, stated that the government believes it essential to offer more affordable and environmentally friendly energy solutions in this sector to benefit the general public.

“It is in light of the above; that we in Kaduna state, like in any other state across the federation, deemed it necessary to actively support and participate in this FGN initiative, which we believe is a giant stride in the right direction to address a major climatic and economic factor in our transport sectors.”

Represented by Architect Ibrahim Hamza, the state commissioner for works, the governor commended the federal government’s initiative for setting a phase in switching from petrol powered vehicles to Compressed Natural Gas powered vehicles, particularly for buses.

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Iniform Asifa told that the federal government needs act fast in terms of puttig in place some form of support to help Nigerians survive the current hardship.

She said,

"All I know is that we can keep going on like this. Government needs to step in at this point. Nigerians don't care if the subsidy is removed or added. What matters to them is being able to afford basic items."

Installation of pumps for cheaper fuel increases previously reported that since November last year, the deployment of dispensing pumps for Compressed Natural Gas (CNG) has risen by 233% in six months.

Michael Oluwagbemi, coordinator and chief executive of the Presidential Initiative on CNG (Pi-CNG), disclosed this as he addressed journalists at a Mikano International CNG Vehicle assembly plant tour in Ogun state.

Mikano has shown interest in deploying about 18 CNG pumps nationwide for widespread CNG adoption.

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Proofreading by James Ojo Adakole, journalist and copy editor at


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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 ( degree in Sociology from the University of Ilorin, Kwara State. Before, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via