The Presidential Compressed Natural Gas Initiative (P-CNGI) announced on Thursday, July 11, that it will offer free conversion kits and installations for commercial transport operators, including the Nigerian Association of Road Transport Owners (NARTO), National Union of Road Transport Workers (NURTW), Road Transport Employer’s Association of Nigeria (RETEAN), Uber, and Bolt operators.
They will receive a 100% discount on services from the 123 certified conversion workshops identified by the P-CNGI in 23 states of the federation.
This initiative aims to reduce transportation and production costs.
The P-CNGI is part of the measures launched by President Bola Tinubu to ease the impact of the removal of the Premium Motor Spirit (PMS) subsidy.
As a result, five companies participating in the Conversion Incentive Program have signed agreements with the P-CNGI in Abuja.
The five companies are NipCo Gas; Portland Gas Limited; Fix It 45; ABG Oil and Gas Limited; and the Nigerian Institute of Transportation Technology (NITT).
Speaking with reporters at the ceremony, P-CNG, Chief Executive Officer, Engr. Michael Oluwagbemi, said: “First and foremost, for commercial operators that are unionized, I talk about the members of RETEAN, NARTO, NURTW, through their unions, they can benefit from almost 100% discount.
“That is, they will get the kit for free, and installation will also be done for them for free.
“And this is going to be done through these certified conversion workshops that we are beginning to identify. We have identified about 123 of them.
“Five of them are here with us today that we are going to be working with here in Abuja. As we expand across the country, we will be activating more of them at a time.”
He said next week, P-CNGI will sign another agreement that will give a 50% discount write-off on equipment and free-of-charge installation.
Oluwagbemi said: “We are going to sign the agreement next week. You will be able to benefit from a 50% write-off on the equipment, and then you will get the installation for free.
“So that means the government will pay for these conversion workshops. To install the equipment, you will get a 50% off.
“And because of the arrangement we have with these companies, you will be able to also get to pay little by little, so you are not paying any money upfront on day one.”
All the measures, he said, are targeted at reducing the costs of transportation and production.
“For the common man, it means lower costs. It means that you will be able to fuel your vehicle at between 40% to 70% less than what you currently do.
“For those who do not have vehicles, especially with our friends at Bolt and NURTW, they are pledging that they will be passing some of these savings on to you, which will ensure that your transportation fare will be moderated,” he said.
He revealed that the initiative has over 20,000 kits readily available in the next three months.
He added that the initiative will distribute them across the 23 states that already have CNG capacity.
Oluwagbemi said the P-CNGI will extend the program to Niger and Kano States very soon.
The CEO further noted that the 20,000 kits will be made available under the palliative initiative that was budgeted for last year.
He revealed that the National Assembly has made additional funding even available this year, and P-CNGI will be rolling out additional kits once the necessary acquisition of materials and conversion kits and cylinders are made available by the third quarter or fourth quarter of this year.
The CEO said all the pronouncement took immediate effect, stressing, “But as far as we are concerned, work has started. Conversion kits are going to be starting to be installed. Operators, commercial operators of mass transit vehicles that move 90% of Nigerians, by the way, will be able to benefit from this.
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“They can then pass on their savings to the consumers. The agreement we are signing today is saying, that in return for giving you these kits, you will also pass on those savings to the ordinary Nigerians. So it will begin to have some impact in terms of transportation costs.”
He said the agreement has no expiring date as long as the owners keep using the vehicles.
On the target, he said the initiative was aimed at one million conversions in the next three years.
Meanwhile, the Acting NURTW National President, Comrade Aliyu Isah said should the plan scale through the cost of transportation will crash.
Speaking on behalf of the participating partners, ABG Oil and Gas, Mr. Mohammed Bawa pledged they will do their bit to ensure the optimum realization of the benefits of the initiative.