FG Approves Establishment of Presidential CNG Initiative

President Bola Tinubu has given the approval of the Presidential Compressed Natural Gas Initiative (PCNGI).

The announcement was made on Friday by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale. He further stated that the initiative was made to reduce the effect of the removal of fuel subsidy felt by Nigerians.

According to Ajuri Ngelale, the timely intervention was poised to rejuvenate the transportation landscape in the country, placing a target on over 11,500 new Compressed Natural Gas (CNG) enabled vehicles and 55,000 CNG conversion kits for existing vehicles that were dependent on the Premium Motor Spirit (PMS).

He stated,

• While simultaneously bolstering in-country manufacturing, local assembly and expansive job creation in line with the presidential directive.

• The landmark initiative, which comprises a Comprehensive Adoption Strategy, will include the following: Empowering Workshops Programme w/ Nationwide Network of Workshops, Local Assembly and Job Creation as key points of emphasis with an initial focus on mass transit systems and student hubs in order to significantly reduce transit costs for the general populace in the immediate term.

Ajuri Ngelale also stated that the PCNGI's determination was to ensure seamless integration of CNG utility within the current midstream and downstream energy value chain to give its sustainability. 

The PCNGI will help in the provision of workshops across all geopolitical zones and states with useful kits and it will also give quality training for staff that are newly employed and it will also give opportunities for technical skill development and employment for Nigerians.

He explained that the workshop will ensure access and demand side utilization of CNG technology and CNG-related expertise thereby causing smoother transitions for vehicle owners for the wider benefit of the country's economy.

The objectives, 

• The development of new stakeholder-operated Intrastate Mass Transit systems built on CNG, Support for states to onboard new CNG buses as part of their Intrastate Mass Transit network (wholesale conversion, retro-fitting and new purchase); and deployment of CNG buses through existing Private Mass Transit operators, including new financing programmes for operators through an innovative asset finance programme.

• The programme will also incentivise investors to invest in CNG processing, distribution and utilization by providing incentives for enhanced investment and partnership and delivering training and technology transfer to support the After-Sales Services and maintenance sub-industry to create sustainable jobs.

In conclusion, the Special Adviser to the President on Media and Publicity, Ajuri Ngelale said that the President's focus on assembling CNG-enabled vehicles within the country would stimulate economic growth, create employment opportunities, and bolster the nation’s automotive manufacturing capabilities.