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Nigeria's CNG Revolution: Expanding Conversion Centers to Empower Transport Sector

2024-10-06 15:48:40.978000

On September 28, 2024, the Nigerian government took a significant step in its initiative to promote Compressed Natural Gas (CNG) as a viable alternative to petrol by unveiling a plan to distribute over 2,000 CNG-powered tricycles. This initiative, spearheaded by the Federal Ministry of Youth Development under Minister Ayodele Olawande, aims to empower youths while addressing the soaring costs of transportation amid high petrol prices [cbafaec3].

The distribution of these tricycles is expected to dramatically reduce fuel expenses for riders, with projections indicating that costs could fall to just 20% of current Premium Motor Spirit (PMS) prices by the end of the year [cbafaec3]. This initiative is part of a broader strategy to enhance profitability for tricycle operators and lower passenger fares, making transportation more affordable for the general public [cbafaec3].

In conjunction with this, the Nigerian government had previously announced the Presidential Compressed Natural Gas Initiative (P-CNGi) on September 22, 2024, which includes the distribution of 1,000 vehicle conversion kits aimed at converting approximately three million vehicles over the next three years [217144cb]. This initiative is expected to create over 100,000 direct jobs and provide fuel at a significantly reduced price of N230 per litre [217144cb].

On October 6, 2024, the government further expanded the P-CNGi by launching seven CNG conversion centers in Ekiti State. Program Director Michael Oluwagbemi announced that the initiative aims to convert one million vehicles to CNG by 2027, with the expectation that transportation costs could be reduced by 40% [2c58683b]. As part of this launch, 15 CNG-powered buses were handed over to the state government, highlighting the initiative's commitment to enhancing public transportation [2c58683b].

Key centers established in Ekiti include Femoyo, Beijing Universal Limited, ABJ Oil and Gas, Bovas Company, and the NADDC training center. Governor Biodun Oyebanji expressed strong support for the initiative, emphasizing its potential for economic development in the region [2c58683b]. Additionally, leaders from the National Union of Road Transport Workers (NURTW) and the Road Transport Employers Association of Nigeria (RTEAN) have expressed their commitment to the conversion process, with 45 technicians already trained for vehicle conversion [2c58683b].

As part of the P-CNGi, Ogun State has already begun distributing CNG conversion kits to commercial drivers, with inspections and installations taking place at designated centers [5cff4967]. The Ogun Public Works Agency's Agbeloba Centre was among the first locations to distribute the kits, providing 60 cylinders to drivers [5cff4967]. Each 75-litre cylinder is capable of covering approximately 150 kilometers, making it a practical option for commercial transportation [5cff4967].

Ali, the operations manager at Nigerian Gas and Transport Solutions Ltd, highlighted the underutilization of the gas industry in Nigeria, suggesting that this initiative could help tap into its potential [5cff4967]. Overall, these initiatives represent a significant step by the Nigerian government towards promoting environmentally friendly fuel alternatives and enhancing the economic viability of transportation in the country, while also addressing the pressing issue of fuel price hikes [217144cb].

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