Government Aims for 11,500 New CNG-Enabled Vehicles as Part of Fuel Subsidy Plan

President Bola Tinubu has given his endorsement to the establishment of the Presidential Compressed Natural Gas (PCNGI) initiative, in a bid to address the repercussions of fuel subsidy removal by lowering energy expenses for citizens.

The approval of this significant initiative was revealed on Friday by Ajuri Ngelale, the Special Adviser to the President for Media and Publicity. The central aim of the CNG initiative is to counteract the negative effects of fuel subsidy removal on the populace. By facilitating a decrease in energy costs, the initiative strives to alleviate the burden on citizens.

Empowering Vehicle Fleet with CNG

The PCNGI is geared towards equipping a vast fleet of vehicles with Compressed Natural Gas (CNG) technology. The primary focus is on integrating over 11,500 new CNG-enabled vehicles into the transportation ecosystem. Furthermore, the initiative aims to convert 55,000 existing PMS-dependent vehicles into CNG-powered ones, making strides towards sustainability.

Aligned with the President's directives, the initiative seeks to reinforce local manufacturing and assembly, resulting in extensive job creation. The cornerstone of the initiative is a Comprehensive Adoption Strategy, with a particular emphasis on three key aspects: 

1.Empowering Workshops Programme: The initiative plans to establish a nationwide network of workshops. These workshops will offer comprehensive training and essential kits to newly employed staff, effectively nurturing technical skill development and creating employment opportunities.

2.Local Assembly and Job Creation: The initiative targets the establishment of local assembly units. This initiative not only spurs job creation but also supports in-country manufacturing.

3.Reducing Transit Costs: A pivotal aspect of the Comprehensive Adoption Strategy is to reduce transit costs for the public. The immediate focus is on mass transit systems and student hubs, making transportation more affordable for the general populace.

Strategic Objectives of the PCNGI

The Presidential Compressed Natural Gas Initiative has defined strategic objectives to guide its implementation:

1. Development of Intrastate Mass Transit Systems: The PCNGI envisions new stakeholder-operated Intrastate Mass Transit systems built on CNG technology.

2. Support for State-Level Adoption: The initiative will support states in introducing CNG buses into their Intrastate Mass Transit network, covering wholesale conversion, retro-fitting, and new purchases.

3. Collaboration with Private Mass Transit Operators: The initiative plans to deploy CNG buses through existing Private Mass Transit operators, offering innovative financing programs to operators to enhance accessibility.

4. Encouraging Investment: The PCNGI will incentivize investors to participate in CNG processing, distribution, and utilization, stimulating enhanced investment and partnerships.

5. Promoting Sustainable Jobs: The initiative is committed to delivering training and technology transfer, enabling the After-Sales Services and maintenance sub-industry to flourish and create sustainable employment opportunities.

The launch of the PCNGI is a testament to President Tinubu's dedication to economic growth, job creation, and enhancing the nation's automotive manufacturing capabilities. This initiative aligns with the administration's commitment to a cleaner environment, reducing carbon emissions, and ensuring energy security through the utilization of domestic natural gas resources.