President Bola Tinubu has approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI), which aims to revolutionize the transportation landscape in the country. The project targets over 11,500 new CNG-powered vehicles and 55,000 CNG conversion kits for existing Premium Motor Spirit (PMS)-dependent vehicles, while simultaneously bolstering in-country manufacturing, local assembly, and expansive job creation in line with the presidential directive.
The initiative, which comprises a Comprehensive Adoption Strategy, will include the following key points of emphasis: empowering workshops, local assembly, and job creation, with an initial focus on mass transit systems and student hubs to significantly reduce transit costs for the general populace in the immediate term.
In addition, to ensure a seamless integration of CNG utility within the current midstream and downstream energy value chain, the PCNGI will facilitate the provision of workshops across all geopolitical zones and states, complete with essential kits and comprehensive training for newly employed staff, thereby creating new opportunities for technical skill development and employment for Nigerians.
The new nationwide network of workshops, to be established through the initiative, will ensure widespread access and demand-side utilization of CNG technology and CNG-related expertise, thereby facilitating smoother transitions for vehicle owners at the wider benefit of the Nigerian economy.
Under the aegis of the PCNGI, the following strategic objectives will 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 programs for operators through an innovative asset finance program.
- Incentivize investors to invest in CNG processing, distribution, and utilization by providing incentives for enhanced investment and partnership.
Deliver training and technology transfer to support the After-Sales Services and maintenance sub-industry, creating sustainable jobs.
President Tinubu’s focus on assembling CNG vehicles within the country will stimulate economic growth, create employment opportunities, and bolster the nation’s automotive manufacturing capabilities.
The launch of this initiative also underscores this administration’s commitment to fostering a cleaner environment by reducing carbon emissions and promoting energy security through the utilization of domestic natural gas resources.
Source: Government of Nigeria