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PCNGI: Nigerian Government’s strategy for transition to CNG-fuelled vehicles

*President Bola Ahmed Tinubu’s administration  targets over 11,500 new Compressed Natural Gas (CNG)-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles to stimulate economic growth, create employment opportunities, and bolster up automotive manufacturing capabilities in Nigeria

Isola Moses | ConsumerConnect

President Bola Ahmed Tinubu, GCFR, has approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI) as part of his administration’s commitment to easing the impact of fuel subsidy removal on vulnerable Nigerian consumers by reducing energy costs.

The Federal Government stated that the transformative initiative is designed to revolutionise the transportation landscape in the West African country.

Ajuri Ngelale,

Special Adviser to the President on Media and Publicity, in a statement issued Friday, August 18, 2023, in Abuja, FCT, noted President Tinubu is targeting over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles.

The Presidency also stated the idea would  simultaneously bolster up in-country manufacturing, local assembly and expansive job creation in line with the presidential directive.

The Presidential aide said: “The landmark initiative, which comprises of 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.”

According to the government, the PCNGI is  determined to ensure a seamless integration of CNG utility within the current midstream and downstream energy value chain to support its sustainability.

The initiative will facilitate the provision of workshops across all geopolitical zones and states with essential kits and comprehensive training for newly employed staff, thus creating new opportunities for technical skill development and employment for Nigerians, said the statement.

Ngelale further stated that the proposed nationwide network of workshops, will ensure widespread access and demand side utilisation of CNG technology and CNG-related expertise.

It is aimed at facilitating a smoother transition for vehicle owners at the wider benefit of the Nigerian economy.

Strategic objectives of PCNGI

The government as well noted that under the aegis of the PCNGI, the following strategic objectives should be achieved:

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).

The deployment of CNG buses through existing Private Mass Transit operators, including new financing programmes for operators through an innovative asset finance programme.

Incentivise investors to invest in CNG processing, distribution and utilisation by providing incentives for enhanced investment and partnership.

Deliver training and technology transfer to support the After-Sales Services and maintenance sub-industry to create sustainable jobs.

The statement also said President Tinubu’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.

The Federal Government noted the launch of this initiative has underscored the current administration’s commitment to fostering a cleaner environment by reducing carbon emissions and promoting energy security through the utilisation of domestic natural gas resources.

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