The Federal Government has announced that the conversion of petrol and diesel-powered commercial vehicles to run on Compressed Natural Gas (CNG) will be free of charge. This initiative was declared in Abuja after signing agreements with various companies involved in the conversion process.
Michael Oluwagbemi, the Programme Director/Chief Executive of the Presidential Compressed Natural Gas Initiative (P-CNGI), shared this update with journalists. He explained that commercial transporters under unions like the Road Transport Employers Association of Nigeria (RTEAN), the National Union of Road Transport Workers (NURTW), and the Nigerian Association of Road Transport Owners (NARTO) would benefit from the program.
Oluwagbemi stated, “Today we’ve just signed with five partners here in the Federal Capital Territory participating in the Conversion Incentive Programme. The programme addresses the cost barrier for Nigerian commercial transport operators converting from petrol to gas. These operators have found the conversion costs to be expensive, so we are providing the kits and installation for free through certified conversion workshops. We’ve identified 123 workshops so far, with five here in Abuja.”
The second group to benefit includes ride-share operators. “If you are a ride-share driver with platforms like Uber, Bolt, Lag-Ride, or Move, you can also benefit. Bolt has already signed, and Lag-Ride is on board. These operators will receive a 50 percent discount on the conversion equipment, and installation will be free. Payment can be made incrementally, without any upfront cost,” Oluwagbemi noted.
He emphasized that this initiative would reduce transportation costs for Nigerians. “We have over 20,000 kits available in the next three months, distributed across 25 states with some CNG capacity. These kits are part of last year’s budgeted palliative initiative, with additional funding from the National Assembly for further distribution later this year.”
Regarding the agreements signed, Oluwagbemi mentioned, “In return for the free kits, transport operators must pass on the savings to Nigerians. We have a robust monitoring system to ensure proper conversion and enforce reduced pricing. The Nigerian gas vehicle monitoring system will track conversions and ensure savings are passed on to the public.”
This initiative aims to make transportation more affordable for Nigerians through the widespread adoption of CNG-powered vehicles.