Nigerian Government Flags Off CNG Buses Initiative

The Nigerian government has flagged off the Presidential Compressed Natural Gas Initiative PCNGI, with seven conversion centres across Nigeria.

In a symbolic handover of the CNG buses to the State House, the Chairman of the Presidential CNG Initiative Steering Committee, Zacch Adedeji announced that the government has waived the Value Added Tax on the CNG buses purchase as well as seeking duty waivers for value-chain.

Adedeji stated that “the goal is to build a sustainable future, leveraging Nigeria’s available cheap and clean energy source, which is gas.”

The Committee Chairman also said that plans are underway for the government to establish multiple conversion centres across the Country in the next two weeks.

“Moreover, it is my pleasure as your Chief Tax Officer, a position I hold alongside as Chairman of this initiative, to announce that we will be waiving the Value Added Tax on CNG purchases as well as seeking duty waivers for value-chain. The goal is to build a sustainable future, leveraging our own cheap and clean energy source gas,” he said.

Adedeji further disclosed that the project is currently about the conversion of vehicles, while it also generates employment opportunities.

He emphasised that the delivery of the CNG project demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth in Nigeria.

Adedeji implored Nigerians to consider the buses as a symbol of a new beginning, “a journey towards the future, where the power of tomorrow starts today. Let this be a beacon for our country, Nigeria, and an inspiration to the world.

The Committee Chairman stressed that the buses running on compressed natural gas are not just a technical achievement, but a symbol of President Tinubu’s administration’s commitment to spearheading an energy revolution.

Adedeji was represented by the Chief Executive Officer of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Mr Farouk Ahmed.

Project Director of the Presidential CNG Initiative, Micheal Oluwagbemi disclosed that State governments have already indicated investment interest in the CNG Buses.

He said that the Rivers State Government has already acquired a good number to ease the transportation challenges of the state.

Speaking on the Cost of Conversion, Oluwagbemi said that the current cost of conversion varies from the model and type of vehicle, stressing that the President has ensured that as part of PCNGI, the committee will incentivize the cost for the Nigerian populace.

The Project Coordinator promised that Nigerians would be able to achieve conversion at a lower cost.

“Nigeria is a gas country with a very small quantity of crude oil, The President wants to make sure that the Nigerian public is not subjected to the price of transportation occasioned by international conflagration rather than being able to use the gas that Nigeria produces by Nigerian people such that jobs are also created at home instead of exported abroad.

“The current cost of conversion varies from the model and type of vehicle but the President has ensured that as part of PCNGI, we will look into that cost by helping and incentivizing Nigerians,” Oluwagbemi explained.

He disclosed that immediately, the Nigerian government ordered 55000 conversion kits as part of the immediate palliative for various stakeholders such as the labour unions, and mass transit bus operators. Either state or private will be able to benefit from those conversion kits.

The Chairman of the Nigeria Governors’ Forum, AbdulRahman AbdulRazaq said Nigeria is the eighth-largest gas-producing nation in the world and with 70%, of its hydrocarbon gas possession will strengthen the nation’s gradual transition from petrol-powered vehicles to gas–powered transit vehicles.

Governor Abdulrazaq called on the private sector to invest in the CNG Bus programme, emphasizing that Universities in Nigeria will be the first beneficiaries of the buses and all state governments will also key into the programme.

He said; “This is the first major change to come. We all know that apart from having abundant gas resources, I think number eight in the world in gas reserves, gas is a cheaper means of transportation and cheaper means of energy.”

“I remember former President Obasanjo established the Olokola Free Trade Zone because he wanted that zone to be powered by gas solely. So, as we transit forward, I encourage the private sector to invest in this gas programme. I commend the president as well because this programme, aside from kicking off at the Government House, our universities will be the first beneficiaries of the buses and all state governments will also key into this.

“Also, from my state, we’re going to invest massively and encourage our businessmen to invest massively in this transition. I can only praise Mr President that our dreams are being fulfilled step by step.” the Chairman NGF added.

Receiving the CNG Buses on behalf of the State House, the Permanent Secretary, State House, Olusesan Adebiyi said that the provision of the buses will enhance the efficiency of staff and enhance their punctuality at work

Adebiyi promised that the P-CNGI and partners that all operational buses of the State House would be converted to gas-powered vehicles.

He said; “For the P-CNGi, I want to assure you to prepare for us because henceforth, all the staff buses we’ll have to buy from you and I can assure you we’ll soon set out to consult you and enter negotiations with you for not just purchase, but also maintenance.”

“The State House has some fuel dumps and I want to assure you right away that one of our fuel dumps will be converted to CNG with immediate effect, to guarantee frequent fueling of these I’ve discussed with you as well the issue of maintenance. I want to also assure you that we will agree with you because, this is new in Nigeria, and the spares are not readily available, so why not meet the manufacturers? The fact that these buses were assembled in Nigeria, it’s all Nigeria-made, is one thing that I will not forget in a hurry because as an engineer, I’ve been praying for this to happen and now it’s happening in my lifetime.

“The provision of this bus will enhance the efficiency of our staff, will enhance their punctuality to work and will also enhance speedy delivery of service in the entire State House. Staff listen to me, you know that I don’t come late, so now you don’t have reason to come late, since buses are available to take you to work,” he said

Managing Director of OMAA Motors, managing partner of PCNGI, Chinedu Oguegbu lauded the patronage of made-in-Nigeria vehicles by the federal government saying that it is a way of deepening industrialisation.

Oguegbu stressed that the deployment of the CNG buses to ease transportation challenges in Nigeria would go beyond the natural gas value chain, saying that iwouldll create thousands of jobs for the youths.

“This is going to go beyond the natural gas value-chain, this is going to create thousands of jobs for the youths and not just like basic tech, what we’re talking about natural gas vehicles, as we progress in Nigeria and after coming up, the technology that we’ll develop here, the talents that we’ll build here, we’ll be able to use this and export to other African countries that have similar initiatives,”he said.

The Chief Of Staff to the President, Femi Gbajibiamila officially flagged off the initiative.