June 13, 2024
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OIL & GAS RENEWABLE ENERGY

Discontent Brews Over Federal Government’s CNG Vehicle Roll-Out Plan

There’s growing discontent within the auto industry over the Nigerian government’s implementation of the Compressed Natural Gas (CNG) initiative, particularly with the planned roll-out of gas-powered vehicles by the presidential committee.

According to Daily Trust, concerns have been raised regarding the selection process for auto plants involved in the initiative, as well as the decision to opt for semi-knocked down (SKD) assembly instead of the previously envisaged Complete Knocked-Down (CKD) method.

Dr. David Obi, a prominent stakeholder in the industry, questioned the rationale behind reverting to SKD assembly, highlighting the progress made by Nigerian vehicle plants in CKD manufacturing over the years.

Similarly, Mr. Femi Olafunmiloye, founder of Lafbart Innovations and Consulting Ltd, criticized the importation of SKD tricycles where local CKD capabilities exist, arguing that CKD assembly ensures greater local participation and knowledge transfer.

Innoson Vehicle Manufacturing Co Ltd Chairman, Dr. Innocent Chukwuma, expressed disappointment over the bidding process, noting that his company, a member of NAMA, was overlooked despite its proven track record in CNG vehicle production.

Mr. Cornel Osigwe, Head of Communications at Innoson Vehicles, highlighted the company’s extensive experience in manufacturing CNG-powered vehicles and questioned its exclusion from the bidding process.

With stakeholders raising valid concerns about the implementation of the CNG initiative, the federal government faces mounting pressure to address these issues and ensure a transparent and equitable roll-out process.

As the auto industry continues to voice its discontent, the success of the CNG vehicle program hinges on the government’s ability to address these challenges and foster a conducive environment for local manufacturing and innovation.

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