The presidency announced on Sunday that the Federal Government is gearing up to launch its compressed natural gas (CNG) initiative in May, coinciding with President Bola Tinubu’s upcoming first anniversary in office.
Tinubu had declared the end of the fuel subsidy era during his inauguration, a move that led to a surge in fuel prices.
However, he assured the public of implementing measures to mitigate the impact, including the introduction of CNG-powered mass transit buses and tricycles.
According to presidential aide, Bayo Onanuga, the initiative is now ready to be set in motion after nearly a year in the making.
Onanuga stated in a late Sunday statement, “In all, over 600 buses are targeted for production in the first phase that will be accomplished this year.”
He further elaborated on the plans, mentioning, “A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles.”
Onanuga revealed that parts manufactured by Chinese company LUOJIA, in partnership with local entities, are en route to Nigeria and expected to arrive early in May.
He added, “About 2,500 of the tricycles will be ready before May 29, 2024.”
The Federal Government aims to procure “5,500 CNG vehicles (buses and tricycles), 100 Electric buses, and over 20,000 CNG conversion kits,” Onanuga explained.
He also highlighted efforts to facilitate the development of CNG refilling stations and electric charging stations.
President Tinubu’s approval of tax and duty waivers in December 2023 has paved the way for collaboration with the private sector to advance the initiative.
Onanuga noted, “The private sector has responded with over $50 million in actual investments in refueling stations, conversion centers, and mother stations.”
Additionally, plans are underway to assist petrol-powered buses and taxis in transitioning to CNG. Onanuga assured, “Thousands of conversion kits for petrol-powered buses and taxis that want to migrate to CNG are also ready with CNG cylinders.”
In response to negotiations with labour unions over the subsidy removal effects, Tinubu has urged patience from Nigerians, expressing confidence in the long-term benefits of his reforms.
As part of the government’s efforts, a package includes a temporary pay increase for federal employees, suspension of VAT on diesel, and social security cash transfers to the poorest citizens.
