…To convert one million petrol vehicles by 2027..

By Demola Akinyemi, Ilorin 

For those who are manufacturing CNG (Compressed Natural Gas) vehicles in Nigeria, as well as those bringing in the vehicles, the federal government has effected zero per cent import duty on the vehicles as well as the kits and conversion of existing vehicles to CNG-compliant vehicles in order to encourage their availability for the teaming masses. 

The federal government is also planning to convert one million vehicles by 2027 and currently working on “Conversion incentives” that will be unfolded on May 29, 2024, for those who would be willing to convert their vehicles to CNG.

The programme Director/Chief Executive of Pi-CNG, Engineer Michael Oluwagbemi, who disclosed this in Ilorin on Wednesday at the North Central 2 and South West 2 stakeholder engagement meetings on the agenda for the Presidential Initiative on Compressed Natural Gas (Pi-CNG), also said that the Federal Government is hoping to achieve conversion of one million vehicles out of about 10 million existing petrol vehicles by 2027.

He said, “The Federal Government, in a December 2023 circular approved by Mr. President and issued by the Finance Ministry through the office of the Special Adviser, Energy, had approved import duty waiver for all CNG auto vehicles as well as kits, including equipment used to manufacture CNG vehicles in Nigeria.

“It’s the standing order of the FG. It’s for those who are manufacturing CNG vehicles in Nigeria as well as those bringing in the vehicles.

“In the meantime, yes, there’s still need to comply with regulations by the SON, and other regulatory agencies.” 

The initiative, according to him, “will save Nigeria between about $2.5 billion and $3.5 billion a year and get us off almost 10 million litres of petrol from what we’re currently using.” 

The stakeholders engagement meeting had in attendance chieftains and members of transport unions from NARTO, TOAN, RTEAN, NURTW, NATA, Union of Tipper and Quarry, as well as affiliate unions in Ekiti, Kwara, Ondo, Kogi, and Osun states. 

Engineer Oluwagbemi also explained advantages of CNG vehicles over petrol vehicles, saying that CNG vehicles run on clear, cheaper, and better energy for a safe environment. 

He said, “CNG vehicles run cheaper (40 to 70 per cent cheaper than petrol vehicles), safer (18 percent cheaper than petrol/diesel vehicles) in terms of explosion, and more reliable. With CNG vehicles, you go less to mechanics for either an oil change or, as the case may be, other vehicles.

“The CNG vehicles are cheaper to run compared to petrol and diesel vehicles, depending on the distance and type of vehicle. It’s cleaner and more reliable.”

He added that the emission problems usually caused by smoke from soundless vehicles would no longer be visible with CNG vehicles. 

Speaking on the cost of converting petrol vehicles to CNG vehicles, the expert said that the cost of conversion is currently between N300,000 and N750,000. 

He, however, said that “the FG is already working on conversion incentives programme to be announced on May 29. It will start gradually and get better. We are looking at conversion of one million vehicles by 2027 and saving Nigeria about $2.5 billion and $3.5 billion a year, and getting us almost 10 million litres of petrol from what we’re currently using.

“The reality is that by the time the FG is able to provide CNG kits and CNG conversion, the commercial vehicles that move about 90 per cent of the population, there will be no reason for the FG to renege on the promise to remove subsidy and to ensure that Nigerians do not pay for the importation of poverty and the export of jobs that were the order of the day when we used to import petrol rather than export gas and use our gas for the benefit of all Nigerians.”. 

He further said that the conversion incentive programme would include access to gradual payments and discounted rates for the CNG conversion. 

For his part, the Ekiti state commissioner for transportation, Kehinde Kolawole Ajobiewe, said that the CNG conversion programme would alleviate suffering of the nation’s transporters. 

“It’s a way out of problems associated with the use of petrol as well as an alternative initiative since it’s natural gas. It’s more economical, and the vehicle’s engine will last longer than before and at a low cost. The federal government means well. So, we need the cooperation and understanding of all Nigerians. 

Also, Special Adviser to Ondo State Governor on Transport, Olugbega Omole, described the programme as a laudable initiative that all should key into. 

He said that the Ondo state government planned to have 80 CNG vehicles, adding that the state government had launched five CNG buses for free school transportation due to high cost of petroleum. 

The acting chairman of NURTW in Kwara state, Alhaji Isa Ore, said that the transporters are in support of CNG conversion programme. He, however, said that the challenge was how to convert the existing cars/vehicles to CNG-compliant vehicles. 

He called for reassurance from government that the conversion would be beneficial to members. 

Similarly, the immediate past national president of NURTW, Alh Najim Yasin, commended President Bola Ahmed Tinubu for the initiative and urged the stakeholders to fully key into the agenda in order to enjoy the maximum benefits as planned by the federal government.

The CEO of Rolling Energy Providers Limited, Umar Mubarak, represented by the Chief Operation Officer (COO), Uzzy Ajeroh, said that the petrol vehicles and CNG vehicles would be operated side by side until the whole conversion is achieved. 

He said that the federal government would set up conversion points across the country, adding that modalities would be worked out for the conversion to ensure smooth transition.

“CNG is a better option and will be beneficial to everyone,”  he said, explaining that CNG is different from cooking gas.