The Federal Government, on Thursday in Abuja, signed the Compressed Natural Gas (CNG) initiative contract with five companies as part of efforts to drive the economy towards a gas-driven transportation sector and move away from petrol-fueled cars.

CNG is used in traditional gasoline or internal combustion engine vehicles that have been modified or in vehicles specifically manufactured for CNG use. It can be used in place of petrol, diesel fuel, and liquefied petroleum gas (LPG).

Speaking during the signing ceremony with Portland Gas, NIPCO, ABG Oil, Fix It 45, and the Nigeria Institute of Transport Technology (NITT), the Programme Director/CEO of the Presidential CNG Initiative, Michael Oluwagbemi, said the collaboration will have serious implications for the economy, with a reduction in transportation for Nigerians as well as lower co cost of production for industries and manufacturing alike.

He said while there are already 123 conversion workshops around the country, starting in Abuja with the aforementioned partners, the government is targeting about one million conversions in the next three years at a rate of about 300,000 per year.

“In the last six months, we’ve been very privileged, going around the country, as we sensitise all stakeholders, especially the road transport sector, around the plans of Mr President to help usher in a new era of a gas-driven transportation sector. Immediately, we are going to be kicking off conversions across the country, starting here in the Federal Capital Territory. In the immediate future, we have five organisations that are joining us here today that will be participating in this conversion programme here in the FCT.

“Beyond them, there are several of them across Nigeria. We’ve identified over 120 conversion centres, and we’ll be activating one state at a time as we receive conversion kits that were procured for us by the Federal Ministry of Finance. The five entities that are seated here—Portland Gas, NIPCO, ABG Oil, Fix It 45, and NITT—will be participating in the conversion here in Abuja, in the FCT.

“And beyond these, we also have representatives of the vehicular assets that will be converted. We have the NURTW, as well as representatives of Bolt, among many others, that will be making and providing their assets available for conversion. What does conversion mean at the end of the day? Conversion is about changing the way we fuel our vehicles.

“Instead of the use of products like diesel and PMS, we have to begin to use the gas that God has blessed this country with. For the common man, it means lower costs. It means that you will be able to fuel your vehicle for between 40% and 70% less than what you currently do. For those who do not have vehicles, especially with our friends at Bolt and NURTW, they are pledging that they will be passing on some of these savings on to you (Nigerians), which will ensure that your transportation fare will be moderated.

“Indeed, this has serious implications for our nation’s economy with respect to transport inflation. As a result of this collaboration, we will be able to bring down the cost of transportation for the common Nigerian. It is also going to lower the cost of production for our industries and manufacturers in the long run,” Oluwa told the Tribune Online.

Mohammed Bawa, Alhaji Isa Ore, and Zankyang Duniya, Group Managing Director of ABG Oil, Acting President of NURTW, and Operations Manager of Bolt Nigeria, respectively, expressed happiness over the contract in separate interviews with the Tribune Online, saying it will have positive impacts on the Nigerian transportation sector as well as the economy in general.

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