The Presidential Compressed Natural Gas Initiative (P-CNGi) has signed a Memorandum of Understanding (MoU) with conversion workshop owners to convert one million commercial petrol vehicles to compressed natural gas (CNG) by 2027.
This initiative, launched at a ceremony on Thursday in Abuja, includes partners like NIPCO Gas, Portland Gas Ltd., Fix It 45, ABG Oil, and the Nigeria Institute of Transport Technology (NITT).
P-CNGi CEO Michael Oluwagbemi highlighted the program’s goal to achieve the highest global vehicle conversion rate, with 2,000 workshops identified nationwide and 123 already selected.
Unionized commercial operators, including the Road Transport Employers Association of Nigeria (RTEAN), the Nigerian Association of Transport Owners (NATO), and the National Union of Road Transport Workers (NURTW), will begin conversions at five workshops in the Federal Capital Territory (FCT), with plans to expand nationwide.
The government will cover the remaining costs and offer installment payment options.
Oluwagbemi explained, “Commercial operators that are unionized through their unions can benefit 100% discount, receiving the kits and installation for free.
This includes operators from RTEAN, NATO, and NURTW, starting with the five workshops in the FCT and expanding as more workshops are activated across the country.”
The partnership also extends to ride-sharing companies, offering them significant savings. “Bolt Nigeria, Uber, and others will benefit from a 50% write-off on equipment and free installation, with the government covering the other half.
“Arrangements are made for these companies to pay in installments without upfront costs,” Oluwagbemi added.
This initiative aims to reduce transportation costs for Nigerians who rely on these services.
