The Presidential Compressed Natural Gas Initiative (PCNGI), which comprises seven conversion centers spread around Nigeria, has been launched by the Nigerian government.
Zacch Adedeji, the Chairman of the Presidential CNG Initiative Steering Committee, revealed during a ceremonial transfer of the CNG buses to the State House that the government has waived the Value Added Tax on the purchase of the CNG buses and is also seeking duty waivers for value-chain.
“The aim is to build a sustainable future, leveraging Nigeria’s available cheap and clean energy source, which is gas,” according to Adedeji.
In addition, the chairman of the committee announced that the government is preparing to open several conversion centers throughout the nation in the upcoming two weeks.
Furthermore, it gives me great pleasure to declare that we will be requesting duty exemptions for value-chain and waiving the Value Added Tax on CNG purchases in my capacity as your Chief Tax Officer, which I hold in conjunction with my role as Chairman of this initiative. Building a sustainable future with our cheap, clean gas energy supply is the aim, he stated.
Adedeji went on to say that the project’s present focus is on vehicle conversion, and it also creates job possibilities.
He emphasized that President Bola Tinubu’s dedication to environmental sustainability and economic prosperity in Nigeria is demonstrated by the completion of the CNG project.
The buses represent a fresh start and a voyage towards the future, where the power of tomorrow begins today, Adedeji pleaded with Nigerians. Let this serve as a lighthouse for Nigeria and an example to the rest of the globe.
The chairman of the committee emphasized that the buses powered by compressed natural gas represent more than simply a technological triumph; they also represent the administration of President Tinubu’s will to lead an energy revolution.
Mr. Farouk Ahmed, the CEO of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was Adedeji’s representative.
According to Michael Oluwagbemi, Project Director of the Presidential CNG Initiative, state governments have already expressed interest in investing in CNG buses.
He claimed that in order to lessen the state’s transportation difficulties, the Rivers State Government had already acquired a sizable number.
Speaking about the Cost of Conversion, Oluwagbemi emphasized that the President has made sure the committee will lower the cost for the Nigerian people as part of PCNGI. He stated that the current cost of conversion varies depending on the brand and kind of vehicle.
Nigerians would be able to achieve conversion at a lesser cost, the project coordinator promised.
Nigeria is a gas-producing nation with a relatively small crude oil reserves. The President of Nigeria wants to ensure that the Nigerian people can use the gas produced domestically by their own people, rather than having to pay for transportation caused by international conflicts. It also wants to prevent jobs from being exported abroad.
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Oluwagbemi clarified, “The President has ensured that as part of PCNGI, we will look into that cost by helping and incentivizing Nigerians. The current cost of conversion varies depending on the model and type of vehicle.”
He said that, as an immediate palliative for several parties, including labor unions and mass transport bus operators, the Nigerian government bought 5,000 conversion kits. Those conversion kits will be useful for the state or the commercial sector.
Nigeria is the eighth-largest gas-producing country in the world, and 70% of its hydrocarbon gas reserves would support the country’s progressive switch from gasoline-powered to gas-powered transit vehicles, according to AbdulRahman AbdulRazaq, Chairman of the Nigeria Governors’ Forum.
Governor Abdulrazaq urged the business sector to contribute to the CNG Bus program, stressing that all state governments will be major players in the initiative and that Nigerian universities would be the first to benefit from the buses.
“This is the first significant change to come,” he declared. We all know that gas is a less expensive source of energy and a method of transportation in addition to being plentiful—I believe it ranks eighth in the world in gas reserves.
“I recall that former President Obasanjo wanted the Olokola Free Trade Zone to be powered exclusively by gas when he founded it. I therefore urge the private sector to contribute to this gas program as we move forward. I applaud the president because, in addition to starting at the Government House, this program will benefit our colleges initially by providing buses, and the state governments will play a major role in it as well.
Additionally, my state will make significant investments in this transformation and will actively push its corporate community to do the same. All I can say, Mr. President, is that we are gradually seeing our aspirations come true. The NGF Chairman continued.
Permanent Secretary of the State House Olusesan Adebiyi, who accepted the CNG buses on behalf of the House, stated that having the vehicles will improve employee productivity and timeliness.
Adebiyi pledged to the P-CNGI and its allies that the State House’s operational buses would be switched to gas-powered automobiles.
“I want to assure you that the P-CNGi will be ready for us as we will be purchasing all staff buses from you going forward. We will shortly begin consulting with you and negotiating with you for not only purchase but also maintenance,” he stated.
“The State House has a few fuel dumps, and I want to reassure you right away that one of them will be converted to CNG immediately. I’ve also talked to you about the maintenance issue to ensure that these fuel dumps are regularly fueled.
Additionally, since this is new in Nigeria and spare parts are hard to come by, I want to reassure you that we would support your position. Why not meet the manufacturers? I will never forget that these buses were assembled in Nigeria and are entirely Nigerian-made; as an engineer, I have been praying for this to occur and it is now occurring during my lifetime.
“Having this vehicle will improve our employees’ productivity, their ability to arrive at work on time, and the speed at which services are provided across the State House. Staff, pay attention to me. Since busses are available to transport you to work, you no longer have an excuse for arriving late because you know that I never arrive late.
The federal government’s support of cars built in Nigeria, according to Chinedu Oguegbu, managing director of OMAA Motors and managing partner of PCNGI, is a step toward furthering industrialization.
Oguegbu emphasized that the installation of CNG buses would benefit Nigerians in ways that went beyond the natural gas value chain, adding that it would provide thousands of jobs for young people.
“This will go beyond the natural gas value chain and generate thousands of jobs for young people, not just basic technology. We’re talking about natural gas vehicles, and as we advance in Nigeria and beyond, the technology and talent we develop here will be able to be utilized and exported to other African nations that have similar initiatives,” the speaker declared.
The project was formally launched by Femi Gbajibiamila, the President’s Chief of Staff.
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