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  • FG hands over CNG buses to Oyo govt

    FG hands over CNG buses to Oyo govt

    The federal government on Monday, September 2nd, handed over 20 Compressed Natural Gas (CNG) buses to the Oyo state government.

    The initiative, according to President Bola Ahmed Tinubu, was to cushion the effect of fuel subsidy removal and promote a safer, cleaner, and more reliable nation.

    Speaking at the event held at Pacesetter Transport Services (PTS) office in Ibadan, the president, who was represented by the Chief Executive Officer (CEO) and the Programme Director of Presidential Compressed Natural Gas Initiative (P-CNGi), Michael Oluwagbemi, said the initiative was one of the testimonies to Tinubu’s Renewed Hope Agenda.

    According to him, President Tinubu was concerned about making life easy for Nigerians, having discovered the importance of transportation towards the development of the nation’s economy.

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    He noted that the deployment of CNG buses in the country was to address issues affecting Nigerians particularly on petrol importation, among others.

    According to him, the deployment of the buses was to end the era of enriching the rich alone, whom he described as cabitocrat for the benefit of everyone and stressed that the compressed natural gas was a source of fuel that is abundant in Nigeria to ameliorate hardship.

    “President Tinubu is asking us to use our gas to thrive in transportation, and industries, produce more foods and fertilizers as well as other things that will make life easier for the people.

    “We are beginning to do the right thing but this requires us to taste some pains. We can’t go back to subsidize our own impoverishment. As a team, we are determined to show our commitment.

    “We are here to present 20 buses as a sustainable partnership with Pacesetter Transport Service (PTS) to generate income because they are assets. We can effectively ensure that the future of the Oyo State is brighter as well as Nigeria.”

    In his remark, the Chairman and Sole Administrator of PTS, Hon. Ibrahim Salami said the CNG buses are the best approach by the federal government to solve the hardship experienced by Nigerians as a result of the removal of fuel subsidy.

    He, however, described bringing the buses to the state as remarkable which according to him will help to ease the burden of people in the state.

    Also, the special assistant to Governor Seyi Makinde on the environment, Ademola Aderinto said CNG is a far cheaper form of energy, noting that the initiative will give a longer and healthier life as it will also prevent the emission of carbon monoxide always caused by combustion engines.

  • Driving toward a cleaner future with CNG buses

    Driving toward a cleaner future with CNG buses

    • Despite initial challenges, Nigeria’s adoption of CNG technology as a key component of its sustainable urban transport strategy is crucial for economic transformation

    In a historic move that could redefine Nigeria’s transportation landscape, President Bola Tinubu has inaugurated 30 hybrid Compressed Natural Gas (CNG)-powered buses in Abuja. This bold step, part of the Presidential CNG Initiative, signifies more than just the launch of a new fleet of vehicles. It marks a decisive shift towards cleaner energy, economic efficiency, and a future where Nigeria can significantly reduce its reliance on costly and environmentally harmful fossil fuels.

    At the launch, the President said utilising natural gas to power the nation’s transportation industry would reduce transportation costs, enhance productivity and save the nation trillions of naira spent on the importation of petrol and diesel. “If we can enhance our energy competitiveness and bring about transformative changes like this, we will be able to achieve the prosperity we are working hard to accomplish for our people. These CNG buses are encouraging and promising to enhance our transportation system,” he said.

    Tinubu highlighted that commercial vehicles consume over 80 per cent of the nation’s petroleum supply, pointing to several countries that have transitioned to CNG for their transportation systems and are already enjoying significant benefits. “Countries like India have mandated CNG for all commercial vehicles since 2004. In Nigeria, commercial vehicles make up about 80 per cent of our petroleum demand, costing us trillions of naira every month. The solution is here. We have it. We will work on it. We promise you things will get better. Prosperity will be achieved,” the President said.

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    He praised Innoson Motors, the vehicle manufacturer, for their dedication to advancing his administration’s CNG initiative. The launch of these CNG-powered buses, generously donated by the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Nigerian National Petroleum Company Limited (NNPC), represents a crucial pivot in Nigeria’s energy strategy. Each bus, locally manufactured by Innoson Motors, can accommodate 100 passengers, making them a formidable addition to Nigeria’s public transportation system.

    This initiative comes at a critical time, just days after President Tinubu’s closed-door meeting with Mr. Innocent Chukwuma, the Founder and CEO of Innoson Vehicle Manufacturing Company Ltd. The discussions focused on expanding the availability of CNG buses to the Nigerian public, with Chukwuma expressing optimism that Nigerians will soon enjoy more affordable and eco-friendly transportation options. The partnership between Innoson Motors and the Federal Government is not just a business agreement; it is a powerful statement about Nigeria’s commitment to innovation, sustainability and self-reliance.

    Why embracing CNG technology makes economic sense

    In an era where environmental sustainability is no longer just an option but a necessity, the importance of clean energy solutions cannot be overstated. The global transition towards greener alternatives is gaining momentum, and Nigeria, with its unique challenges and opportunities, stands at a critical juncture. The introduction and adoption of CNG buses is not just a technological upgrade but a pivotal step towards a cleaner, more sustainable future.

    CNG technology offers a promising solution to Nigeria’s urban transportation woes, providing a cleaner, more efficient alternative to traditional fossil fuels. Unlike diesel or gasoline, CNG produces significantly lower emissions, reducing the carbon footprint of our cities and contributing to improved air quality. For a country grappling with the dual challenges of urbanisation and pollution, the shift to CNG is not merely a choice but a necessity. Despite initial challenges, Nigeria’s adoption of CNG technology as a key component of its sustainable urban transport strategy is crucial for economic recovery. The benefits of CNG extend beyond environmental advantages; they also promise economic resilience. As Nigeria continues to recover from economic downturns, the cost-effectiveness of CNG, combined with its potential to create jobs in the energy sector, makes it a strategic investment in the nation’s future.

    Moreover, the shift to CNG buses aligns with Nigeria’s broader commitment to achieving its climate goals. By reducing dependence on imported fuels and leveraging the country’s abundant natural gas resources, this transition supports national energy security while fostering a cleaner environment. The move towards CNG is a testament to Nigeria’s ability to innovate and adapt, paving the way for a future where urban transport is both sustainable and economically viable.

    President Tinubu has been vocal about the numerous benefits that this shift to CNG-powered transportation will bring. By utilising natural gas to power the nation’s buses, Nigeria stands to significantly reduce transportation costs, which in turn could enhance productivity across various sectors. The economic argument is compelling: Nigeria spends trillions of naira annually on the importation of petrol and diesel, a financial burden that exacerbates the country’s economic challenges. With CNG as a locally available and cheaper alternative, these costs can be dramatically cut, freeing up resources that can be redirected to other critical areas of the economy.

    Moreover, CNG-powered buses present a viable solution to the environmental challenges posed by traditional diesel and petrol vehicles. As President Tinubu pointed out, commercial vehicles account for over 80% of Nigeria’s petroleum demand. This heavy reliance on fossil fuels not only drains the nation’s coffers but also contributes to severe environmental degradation. The introduction of CNG buses could significantly curb the emissions associated with transportation, leading to cleaner air and a healthier population. Furthermore, Nigeria’s abundant natural gas reserves make CNG a locally sourced alternative that can boost energy security and reduce reliance on imported fuels. By harnessing this resource, Nigeria can also generate job opportunities in the CNG production and distribution sectors, further supporting economic growth.

    Learning from global examples

    Nigeria’s move towards CNG-powered transportation is not without precedent. Countries like India, which mandated the use of CNG for all commercial vehicles as far back as 2004, have already demonstrated the benefits of such a transition. The switch to CNG in India led to substantial improvements in air quality, particularly in urban centres like New Delhi, which had been grappling with some of the world’s worst air pollution levels. For Nigeria, the lessons from India and other countries that have embraced CNG are clear. The potential for CNG to transform the transportation sector, reduce environmental impact, and improve public health is immense. However, to fully realize these benefits, Nigeria must not only invest in CNG buses but also in the infrastructure required to support them, such as refuelling stations and maintenance facilities.

    A Leader in CNG adoption, the United States has been at the forefront of CNG adoption, particularly in its public transportation systems. Cities like Los Angeles and New York have invested heavily in CNG buses, recognising their potential to reduce greenhouse gas emissions and improve air quality. The Los Angeles County Metropolitan Transportation Authority (Metro) has one of the largest fleets of CNG buses in the world. Since the early 2000s, Metro has been transitioning its fleet to CNG, citing lower emissions and reduced operational costs as primary benefits.

    This shift has been supported by federal policies and incentives aimed at promoting cleaner fuels. For instance, the Clean Air Act and various grant programs have provided financial support for CNG infrastructure development. This comprehensive approach—combining policy support, investment in infrastructure, and public-private partnerships—has enabled the U.S. to leverage CNG effectively, showcasing its role in advancing environmental and economic goals.

    A model for CNG integration, Italy offers another noteworthy example of successful CNG adoption. The country has embraced CNG not only in its public transportation but also in private vehicles. The Italian government has implemented policies to promote the use of CNG, including tax incentives and subsidies for vehicle conversions. As a result, Italy boasts one of the highest concentrations of CNG-fuelled vehicles in Europe. Italian cities like Milan and Rome have incorporated CNG buses into their fleets to combat urban air pollution. Additionally, Italy has developed a robust network of CNG refuelling stations, making it easier for consumers to access this cleaner fuel. The integration of CNG into both public and private transportation sectors demonstrates the versatility and benefits of this fuel type, providing a model for other countries to follow.

    Expanding CNG infrastructure, Argentina presents a case of how CNG can be utilised to address both environmental and economic challenges. Facing high fuel import costs and severe air pollution in its major cities, Argentina turned to CNG as a viable solution. The Argentine government has heavily invested in CNG infrastructure, including refuelling stations and conversion facilities for vehicles. Buenos Aires, the capital city, has successfully transitioned a significant portion of its public bus fleet to CNG. This move has led to improved air quality and reduced fuel costs. The Argentine experience highlights the importance of developing infrastructure to support the widespread adoption of CNG. By investing in refueling networks and vehicle conversions, countries can facilitate the transition to cleaner fuels and reap the associated benefits.

    The Role of Nigerian innovation

    One of the most encouraging aspects of the Presidential CNG Initiative is the prominent role played by Nigerian innovation and entrepreneurship. Innoson Motors, the company responsible for manufacturing the CNG buses, is a testament to the potential of home-grown talent to drive the nation’s development. By choosing to collaborate with Innoson, the Federal Government is sending a strong message: Nigeria’s future lies in the hands of its own people, and the path to prosperity is paved with local ingenuity and resourcefulness.

    This partnership is about more than just vehicles; it’s about building a robust and self-sufficient industrial base that can compete on a global stage. As Winifred Akpani, Chairperson of DAPPMAN, noted during the launch, the hybrid buses are a product of Nigerian design, manufacturing and delivery. This not only enhances national pride but also ensures that the economic benefits of this initiative—job creation, skill development and industrial growth—stay within Nigeria.

    Challenges and the road ahead

    While the launch of the CNG buses is a significant milestone, it is just the beginning of what must be a sustained effort to overhaul Nigeria’s transportation system. The challenges ahead are substantial. For one, the initial investment required to scale up CNG infrastructure across the country is significant. Refueling stations must be built, and transportation agencies must be trained in the operation and maintenance of these new buses. Moreover, public awareness and acceptance of CNG as a viable and preferable alternative to diesel and petrol will be crucial in driving widespread adoption.

    Furthermore, while CNG is a cleaner alternative to traditional fossil fuels, it is not without its environmental drawbacks. Methane, the primary component of natural gas, is a potent greenhouse gas. Therefore, any leaks or inefficiencies in the CNG supply chain could offset some of the environmental gains. This makes it imperative for Nigeria to not only focus on the immediate benefits of CNG but also to invest in the research and development of even cleaner energy solutions, such as electric or hydrogen-powered vehicles, in the long term.

    By investing in CNG infrastructure, promoting public awareness and fostering strategic partnerships, Nigeria can make a decisive move toward cleaner, more sustainable urban transport. This initiative not only offers a practical solution to current problems but also paves the way for a greener, healthier future for generations to come. As Nigeria accelerates toward this transformative goal, it will undoubtedly contribute to a global movement toward more sustainable and resilient cities.

  • Why we haven’t started using CNG buses, electric tricycles – Niger

    Why we haven’t started using CNG buses, electric tricycles – Niger

    Niger State Government has explained it is yet to put the Compressed Natural Gas (CNG) buses and the electric tricycles to use because it is waiting for the people to take ownership of the project.

    The Commissioner for Local Government and Chieftaincy Affairs, Honorable Mu’azu Jantabo stated this during a one-day local government Net Zero workshop for North Central Zone organized by the Centre for 21st Century Issues in Minna.

    The State Government on May 29 commissioned 200 CNG buses to ease transportation across the State and another 50 CNG buses in July while the state is partnering with Alternative Bank to deliver 5,000 electric tricycles for ease of movement across the state.

    According to him, the government does not want the buses and tricycles to be misused and mishandled at the local government level by the people adding that sensitization is ongoing to make the people at the grassroots aware of the projects, how they can maintain it and take it as their own.

    He said: “Part of the issue that is delaying the actual take-off of the use of the CNG buses and electric tricycles is taking ownership. We want everybody to be on board. 

    “The structure is on the ground but we want everybody to come on board and understand the need for this project and believe in it. Government has done its investment and the government will hand it to the people and it is the people that will drive the project and make it sustainable.”

    The Commissioner, who was represented by his Permanent Secretary, Abubakar Aliyu said that unlike in the past when the government embarked on projects, handed them to the local government and the people neglect the projects, the current administration intends to be deliberate in ensuring that the people take ownership of the projects that would be handed over to them.

    He said the majority of these CNG buses and tricycles would be deployed to the grassroots to convey students, market women and farmers to different places to enhance ease in the movement of goods and persons.

    “At the community, we are sensitising them so that they will take ownership of these projects. All the local governments are coming on board. 

    “These buses will be taken to the local government to commute students free of charge, to commute people going to the markers at a subsidized rate, which means that the people in the community would have to take ownership of the initiative.

    “The state and the ministry are working to enhance the people’s ability to take ownership of what has been initiated. We will put heads together to ensure that we achieve the outcome we set for ourselves.”Aliyu further said that for the actual take-off, the government would soon announce the date the CNG buses and electric tricycles would commence operations across the state.

    The Executive Director of the Centre for 21st Century Issues, Titilope Akosa applauded the Niger state government’s initiative in driving net zero in the state adding that the acquisition of the CNG buses and electric tricycles is a good way to go if the green economy initiative will succeed in the state.

    Acknowledging the state’s green economy policy, she charged the state government to work towards ensuring that the policy is implemented at the grassroots level to carry the people along adding that for any policy to succeed, the grassroots level must be involved, if not, such policy is doomed to fail.

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    “It is good to see that Niger state is one of the states that already has a green economy policy but it is important to ensure the implementation. The implementation must start from the local level. The government’s bid to drive net zero in the state by the acquisition of electric tricycles, CNG buses and motorcycles is laudable and this means the government is serious about reducing greenhouse gases significantly.”

    Akosa explained that the workshop is meant to raise awareness of what net zero is all about and how carbon emission can be reduced at the local level where different human activities contribute to the emission of carbon dioxide and greenhouse gases.

    “We want to look at the local sources of these gases and how we can curb it to the barest minimum to ensure that it doesn’t come into the environment in such a way that it will cause damage and extreme climate events shortly. We need to look at the local sources, we need to know how to mitigate them and sensitize the communities of their role in mitigating it.”

    The Chairman of Agaie local government area, Honorable Sayuti Aliyu applauded the workshop assuring that every local government in the state will ensure that the knowledge on net zero is driven at the local government level.“Most of the damages to the climate is done at the local level, for every plan to succeed, you need to identify critical stakeholders that will drive the success of every plan, as such there is a need for collaboration. We know that everything about climate change emanates from the grassroots, that is why whatever plan we are doing, we must make sure that we translate it back to the grassroots.”

  • Firms to power hospitals with CNG

    Firms to power hospitals with CNG

    • Hospitals, primary healthcare centres to have 24-hour power supply

    The Chief Executive Officer of Portland Gas, Mr. Folajimi Lai Mohammed, in partnership with the National Agency for Science and Engineering Infrastructure (NASENI), has expressed the company’s desire to partner the Federal Government and ensure 24-hour power supply to hospitals and primary healthcare centres across the country.

    He said the company intended to achieve this with Compressed Natural Gas (CNG).

    Mohammed said this when he hosted the Minister of State for Health and Social Welfare, Dr. Tunji Alausa, at the CNG plant of Portland Gas at Utako in Abuja.

    In a statement yesterday in Abuja, the company chief said Nigeria was leveraging its abundant natural gas resources as a viable and economical alternative to petrol since President Bola Tinubu removed fuel subsidy on assumption of office last year.

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    “It is crucial to understand the current CNG landscape, including its manufacturing, transportation, and sale processes, for various sectors to effectively utilise it as a substitute for petrol and diesel. This knowledge is vital for the healthcare sector to effectively transition to CNG as an alternative to petrol and diesel,” he said.

    Mohammed expressed enthusiasm about the potential impact of CNG and Eco Green Generators on the nation’s energy landscape.

    He stressed NASENI Portland’s commitment to driving sustainable and cost-effective energy solutions for Nigeria.

    During the minister’s visit, Mohammed showcased how CNG powers vehicles and generators and provided insights into CNG storage, refilling, and distribution.

    The company chief also highlighted the fuel-to-CNG conversion process, which takes approximately two hours and 30 minutes.

    He and the minister discussed the dual-fuel hybrid conversion solution, illustrating how it allows users to seamlessly switch between traditional fuel and CNG.

    Mohammed stressed that the minister’s visit affirmed CNG’s potential to be a cornerstone for future power supply solutions in Nigeria.

  • Fed Govt votes N100b for high-capacity CNG buses

    Fed Govt votes N100b for high-capacity CNG buses

    • Labour suspends strike after signing agreement with govt

    A huge transport boost to alleviate the petrol subsidy pain was unveiled last night.

    It is a major highlight in the agreements reached between the Federal Government and Labour, which effectively halted the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) strike plan.

    The decision on transportation also include provision of 55,000 CNG conversion kits to kick-start an auto gas conversion programme, pending the completion of ongoing work on the state-of-the-art CNG stations nationwide.

    The government plans to roll-out next month with pilots across 10 campuses nationwide.

    The agreements were reached at the rescheduled parley at the State House in Abuja last night.

    The full agreements were contained in a Memorandum of Understanding (MoU) signed by the Minister of Labour and Employment, Simon Bako Lalong; Minister of State for Labour and Employment, Mrs. Nkeiruka Onyejeocha and Minister of Information and National Orientation, Mallam Mohammed Idris.

    NLC and TUC Presidents – Joe Ajaero and Festus Osifo, with the NLC General Secretary, Emmanuel Ugboaja and his TUC counterpart, Nuhu A. Toro signed for Labour.

    At the end of the meeting, the Labour centres agreed to suspend for 30 days, the planned indefinite strike scheduled to begin today.

    The Labour announced the suspension after six hours of intense negotiation with the Federal Government.

    It was after a decision had been reached by both parties to extend the implementation of the N35,000 provisional wage increment for all federal workers  till a new minimum wage is agreed, suspension of the Value Added Tax (VAT) on diesel for six months starting from October.

    The parley started in parts from about 5pm. The government representatives, led by the Minister of Labour and Employment, held series of briefings, separate consultations with leaders of the represented Labour bodies.

    After a harmonized meeting, which ended at about 10:50pm, the two sides presented a Memorandum of Understanding (MoU).

    Reading out the details of the MoU, Lalong, said: “Arising from the withdrawal of subsidy on Premium Motor Spirit (PMS) by the Federal Government and the resultant increase in the price of the commodity, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) issued a strike notice which had elapsed and they were poised to embark on a strike billed to commence on Tuesday, the 3rd of October, 2023.

    “Consequently, a meeting was called by the Federal Government to avert the strike and after much discussion, the following agreements were reached:

     ”The Federal Government grants a wage award of N35,000 (thirty-five thousand Naira) only to all Federal Government workers beginning from the month of September pending when a new national minimum wage is expected to have been signed into law.

    “A minimum wage committee shall be inaugurated within one month from the date of this agreement.

    “Federal Government suspends collection of Value Added Tax (VAT) on Diesel for six months beginning from October, 2023.

    “Federal Government accepts to vote N100 billion for the provision of high capacity CNG buses for mass transit in Nigeria. Provisions are also being made for initial 55,000 CNG conversion kits to kick start an auto gas conversion programme, whilst work is ongoing on state-of-the-art CNG stations nationwide. The rollout aims to commence by November with pilots across 10 campuses nationwide.

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     ”The Federal Government plans to implement various tax incentive measures for private sector and the general public.

    “On the leadership crises rocking the NURTW and the purported proscription of RTEAN, the Federal Government commits to handling Labour matters in line with relevant ILO Conventions and Nigerian Labour Acts. A resolution of the ongoing impasse is expected by or before October 13.

    “The issue of outstanding Salaries and Wages of Tertiary Education workers in Federal-owned educational institutions is being referred to Ministry of Labour and Employment for further engagement.

    “The Federal Government commits to pay N25,000 per month for three months starting from October, 2023 to 15 million households, including vulnerable pensioners.

    “The Federal Government will increase its initiatives on subsidised distribution of fertilizers to farmers across the country.

    “The Federal Government should urge State Government through the National Economic Council (NEC) and Nigeria Governors Forum (NGF) to implement wage award for their workers. Similar consideration should also be given to local government and private sector workers.

    “The Federal Government commits to the provision of funds as announced by the President on the 1st of August broadcast to the Nation for Micro and Small Scale Enterprises. The MSMEs beneficiaries should commit to the principle of decent jobs.

    “A joint visitation will be made to the refineries to ascertain their rehabilitation status. All parties commit to henceforth abide by the dictates of Social dialogue in all our future engagements.

    “The NLC and TUC accept to suspend for 30 days the planned Indefinite Nationwide strike scheduled to begin, Tuesday, the 3rd of October, 2023.

    “This Memorandum shall be filed with the relevant Court of competent jurisdiction within one (1) week as consent judgment by the Federal Government.”

    Ajaero said that if the agreements are not implemented, the strike issue would be revisited.

    Asked if the agreements apply to the states, Ajaero said the fuel subsidy removal that propelled Labour’s action affects all Nigerians, including those in the states and the private sector.

    He observed that some states had already commenced the attempt at alleviating the effects of the subsidy removal by introducing varying palliatives measures.