The Federal Government has announced a initiative aimed at accelerating the adoption of Compressed Natural Gas (CNG) among commercial transporters, offering free conversion kits and installation to members of transport unions.
This initiative targets the National Union of Road Transport Workers (NURTW), National Union of Road Transport Owners (NATO), and Road Transport Employers Association of Nigeria (RETEAN).
Speaking at the agreement signing with five CNG kit conversion companies in Abuja, Engr. Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative (PCNI), highlighted the government’s expectation of reducing transportation costs by approximately 50% over time.
The participating companies include Portland Gas, NIPCO, ABG Oil and Gas, Fix it 45, and NITT.
Under the scheme, transport companies and e-hailing services like Bolt will receive the conversion kits at a 50% discount. Each kit, priced between N1.2 million to N1.5 million, will be financed through a palliative fund established by President Bola Tinubu.
Oluwagbemi emphasized, “For unionized commercial operators, such as members of RETEAN, NATO, NURTW, they will receive the kits and installation free of charge through certified conversion workshops. We have identified 123 of these workshops across the country.”
He further stated the government’s readiness with 20,000 conversion kits in stock and aims to convert around 300,000 vehicles annually.
Representatives from ABG Oil and Gas, NURTW, and Bolt expressed gratitude for the initiative, noting its potential to significantly lower transportation costs and reduce food prices in the near future.
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