The presidency on Sunday said the Federal Government will launch its compressed natural gas (CNG) initiative in May ahead of President Bola Tinubu’s first anniversary.
Tinubu had announced an end to the fuel subsidy era during his inauguration, a move that triggered a hike in the cost of the product. He, however, promised to put out measures including CNG-powered mass transit buses and tricycles to cushion the impacts of the subsidy removal.
After almost one year in office, that initiative is set to come to life, according to presidential aide Bayo Onanuga.
“In all, over 600 buses are targeted for production in the first phase that will be accomplished this year,” he said in a late Sunday statement.
“A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles. The SKD parts manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and are expected to arrive early in May. About 2,500 of the tricycles will be ready before May 29, 2024.”
Onanuga said the Federal Government is targeting the purchase of “5,500 CNG vehicles (buses and tricycles), 100 Electric buses and over 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations”.
“With necessary tax and duty waivers approved by President Tinubu in December 2023, the PCNGI committee is partnering with the private sector to deliver the promise on the initiative. The private sector has responded with over $50 million in actual investments in refuelling stations, conversion centres, and mother stations,” he said.
There are also plans for those who want to convert their petrol-powered buses and taxis.
“Thousands of conversion kits for petrol-powered buses and taxis that want to migrate to CNG are also ready with CNG cylinders,” he said.
“The Federal Government intends to provide them at subsidized rates, especially to commercial vehicle drivers to bring down the cost of public transportation.”
Since the subsidy removal, the Federal Government and labour unions have been locked in negotiations over measures to combat the effects of its removal.
One of the unions, the Nigeria Labour Congress (NLC) had at some point embarked downed tools to press home their demands one of which is the provision of CNG buses and tricycles.
But President Tinubu has appealed to Nigerians to be patient and believes his reforms would yield results in the long term.
As part of its package, the government offered a 35,000 naira ($45) a month pay increase for six months for federal employees, a temporary suspension of VAT on diesel and social security cash transfers to the poorest Nigerians.