The Federal Ministry of Youth Development has announced the launch of its Compressed Natural Gas e-portal for youths in the commercial transport sector, particularly those interested in operating CNG-powered tricycles across the country.
Minister of State for Youth Development, Comrade Ayodele Olawande unveiled the portal in Abuja on Monday at a press conference.
On October 1, 2024, the federal government, through the Presidential Compressed Natural Gas Initiative (P-CNGi) and the ministry, unveiled the distribution of 2,000 CNG-powered tricycles to empower Nigerian youths.
He said through the portal, youth anywhere from across Nigeria could sign up to be merged with aggregators or owners who work directly with the Presidential CNG Initiative (P-CNGi) Programme, while beginning the process of becoming owners themselves.
He explained that the Ministry has designed the Youth Portal specifically intended to create opportunities for a greater number of youth to participate in the process.
He urged youth with an interest in the sector and palliative programme of President Bola Ahmed Tinubu to sign up for the initiative via www.youthcng.ng or www.pci.gov.ng/tricycle.
The minister noted that the mandate of the Ministry of Youth Development in respect of the Renewed Hope Agenda of President Bola Tinubu is to reduce unemployment in Nigeria by equipping young people with skills and empowerment to be self-reliant and employers of labour.
He said: “In simple terms, what we aim to achieve with the youth portal we are about to launch is to build transparency around the process of enlisting youth into the Presidential CNG Initiative in the transportation sector.
“What this means is that we are opening the process, and any young person willing and ready to take advantage of the programme can participate.”
Olawande said that this was consistent with the aspiration of President Tinubu who desires that all government programmes and initiatives of government offer the same level of opportunity to everyone either rich or poor, low or high.
“Like I have always said, no young person in this country would need to know any godfather to benefit from the programmes of the Ministry of Youth Development. The youth portal we are launching today again reconfirms that promise of ensuring equal access to all our initiatives and programmes
“I, therefore, use this opportunity to call on all youth who work within the commercial transportation sector, or those who have an interest in joining the sector to enlist for the benefits provided through the Presidential Initiative on CNG as a significant component of the palliative programme of President Bola Ahmed Tinubu,” he said.
Also speaking, the Programme Director and Chief Executive Officer of P-CNGi, Michael Oluwagbemi, represented by Mr Tosin Coker, described CNG as “the future of the nation.”
He added: “Indeed, CNG is the future of Nigeria, just as the youths are the future of this nation. By embracing CNG, we are building a cleaner environment as we move away from PMS and diesel.
“We are also saving the nation in terms of the costs previously spent on petrol subsidies, which have been draining the country’s resources for so long. So, what we are doing here is not just a handout; it’s something deeper. As I mentioned, the youth are our future, and it is up to all of us to do what we can for them.”
National President of the National Commercial Tricycle & Motorcycle Owners & Riders Association (NACTOMORAS), Sani Hassan commended the Federal Government for the initiative while assuring the minister of the readiness of the association to support the Ministry of Youth Development towards the success of the programme.
He pledged to mobilise members of NACTOMORAS across the country to fully subscribe to the programme to benefit from the Presidential palliative in the transport sector.
Hassan pledged the commitment of the association to ensure prompt repayment, saying he was aware that the CNG-powered tricycles were not being distributed for free.
The Government of Cross River has adopted the Metal Fabrication Academy in Calabar as a centre for the conversion of vehicles powered by petrol or diesel to Compressed Natural Gas (CNG)
This was disclosed by Cross River’s Commissioner for Transportation, Mr Ekpenyong Cobham in an interview with the News Agency of Nigeria, (NAN) on Monday in Calabar.
NAN reports that CNG is natural gas under pressure which remains clear, odorless and non-corosive; it is also a cheaper greener and more efficient alternative to the traditional petrol and diesel fuels for vehicles
Cobham said CNG was a low hanging fruit, noting that the state was investing in the project to ameliorate the sufferings of residents occasioned by the increase in the cost of fuel in the nation.
According to him, part of the infrastructure that was required such as a mother station would take six months to be put in place and the state was working towards that.
“The benefit of CNG will soon begin to drop so that we will be able to crash the cost of transportation in the state by 50 per cent.
“We are in touch with the presidential committee on CNG for the conversion of vehicles from fuel to CNG and we will be starting up with 500 free packages which they will be paying.
“The state government was also coming in with discussions with commercial Banks to help vehicle owners who may not be able to do a one-off payment for the conversion process to be able to do so in 36 months,” he said.
The commissioner said the cost of conversion depended on the type of vehicle but the cheapest was about N500,000 due to the exchange rate in the nation but they were working hard as a state to partner commercial banks in ensuring that payment was spread.
He said while activating the CNG project, the state was also looking at an elaborate electric vehicle arrangement with one of the biggest players in the industry to put up an assembling plant in the state in the long-term.
In what economic observers have described as a game changer of some sorts, the federal government, in its resolve to ensure a good lease of life for the populace, on Wednesday, announced the removal of the 7.5 percent value added tax (VAT) on various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, among others. Ibrahim Apekhade Yusuf in this report, examines the pros and cons
In what economic observers have described as a game changer of some sorts, the federal government, in its resolve to ensure a good lease of life for the populace, last Wednesday announced the removal of the 7.5 percent value added tax (VAT) on various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, among others. Ibrahim Apekhade Yusuf in this report, examines the pros and cons
The now famous phrase, “It’s the economy, stupid!” coined by Jim Carville, Strategist to former United States President Bill Clinton as part of the selling point during the political hustings was used to the hilt and it worked.
In the same token, the President Bola Tinubu-led administration holds the view very strongly that the only way to fix the country is to fix the economy and every other thing would be taken care of.
That perhaps explains why the administration has been completely resolute about providing reliefs for businesses so that the latter can indeed thrive.
Talking about thriving, one of the hindrances to businesses is the concerns about imposition of taxes across all levels, which indeed, can be disincentive to businesses as have been mentioned in different foras.
Enter tax holidays, waivers
For businesses, one of the inevitable costs which imposed a high burden on them is the humongous cost of energy to drive production, the result of which further drives up the cost of production in the long run.
Interestingly, the federal government in its wisdom has decided to take away the cost components of energy thus freeing more funds for other productive usage.
Little wonder when the news media was awash with the announcement that the government has mooted the idea of crashing the prices of gas, diesel, electric vehicles, others with VAT exemption, it was greeted with excitement.
The prices of various energy products, including diesel, Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and electric vehicles, among others are expected to crash following the removal of the 7.5% value added tax (VAT) from them.
This development was contained in a statement by the Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun, on Wednesday.
According to Edun, these measures aim to reduce the cost of living, enhance energy security, and speed up Nigeria’s shift to cleaner energy sources.
“The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources,” the statement read in part.
The thinking is that the new tax regime will minimise the cost of doing business, improve cost of living and promote cleaner energy.
Thus Value Added Tax (VAT) on cooking gas, diesel, Compressed Natural Gas (CNG) and electric vehicles, among others, have been removed.
Small businesses will also, beginning from January, be exempted from paying taxes to boost income and employment generation.
Presidential aide Dada Olusegun had on his verified X handle @DOlusegun, posted: “As part of efforts to reduce the cost of living, enhance energy security, and speed up Nigeria’s shift to cleaner energy sources, the President Tinubu-led administration has removed VAT on the following: Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, Clean Cooking Equipment.”
He added that in order to incentivise the energy sector and reverse its long-time investment drought, the government introduced tax reliefs for deep offshore oil and gas projects.
Olusegun, quoting Minister of Finance Olawale Edun, said the decision is meant to attract global investments to the country’s deep offshore projects.
The Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs, fulfilling President Tinubu’s campaign promise.
Olusegun quoted the Coordinating Minister of the Economy as saying: “The Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs to attract global investments to Nigeria’s deep offshore projects.
“A reminder that the President, during his campaign, promised to incentivise investors who were divesting away from the country to favorable nations like Guyana and Angola.
“Increased oil production, among other benefits of these reforms, are expected to improve the earnings of the administration in order to implement its programs successfully.”
Small businesses get tax relief
In the new regulations, small businesses with annual turnover of not more than N2 million will from January 1 no longer pay taxes.
They must, however, possess a Valid Tax Identification Number (TIN) to qualify for the relief.
A Finance Ministry source added that the regulation is designed to foster an environment where small businesses and manufacturers can benefit from tax exemptions, especially in sectors with low profit margins.
He stated that tax deducted at source would henceforth, not be regarded as an additional cost or separate tax but treated as an advance payment towards the final tax liability of the supplier.
This approach, according to him, is meant to ease the burden on businesses and ensure compliance without adding unnecessary financial strain.
Under the rules, failure to remit deducted taxes or to deduct tax at source will attract significant penalties. The penalty structure aligns with existing legislation under the Federal Inland Revenue Service (Establishment) Act and the Personal Income Tax Act.
The Federal Inland Revenue Service (FIRS) is expected to issue further guidelines to ensure their smooth implementation.
The measures are contained in ”Deduction of Tax at Source (Withholding) Regulations, 2024” signed by the Finance minister.
Edun said in a statement that the goals of the new tax measures include streamlining “the deduction of taxes at source from payments to taxable persons, reduce complexities, and promote ease of compliance for businesses.”
He added that the measures “cover payments made under the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act. Among its objectives are promoting global best practices, reducing tax evasion, and curbing arbitrage between corporate and non-corporate structures.”
“The objectives of these Regulations are to (a) set out the rules for the deduction of tax at source from payments to taxable persons under the Capital Gains Tax Act, the Companies Income Tax Act, the Petroleum Profits Tax Act, and the Personal Income Tax Act regarding specified transactions,” the minister added.
How the promise was made promise kept
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who gave the hint last week disclosed that the federal government is looking at granting outright tax breaks to companies employing more staff.
Thus, he hinted that the federal government will suspend more import duties for certain goods to curb the rise in inflation.
According to the minister, the measures are part of the Inflation Reduction Act to be signed by the President anytime from now, pointing out that the fiscal measures are geared towards reducing the cost of production for businesses which has increased due to the weakness of the exchange rate and other policies introduced by the current administration. “The Inflation Reduction Act will now contain a range of import duties, exemptions, lowering of tariffs, and outright tax breaks for employment. If you employ more people, you will be given a tax break against it. So, a range of fiscal incentives will be laid out in an executive order which Mr. President will in due course sign.”
As Nigerians wait in bated breath for the introduction of the Inflation Reduction Act, analysts said the time had indeed come to insulate the economy in such a way to withstand the unfavourable climate in which they have found themselves in recent times.
With the rising cost of production, many companies are either shutting down completely or cutting down production with the attendant job losses. Analysts believed it is unfair to frighten local initiatives with the tax burden, given the pains business owners go through to make ends meet in the face of the near collapse of infrastructure in the country.
It is in light of this that the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele was quoted as saying that the federal government is developing a system to provide tax relief to 95 per cent of Nigeria’s informal sector. According to him, 95% of businesses earning N25 million or less yearly will be exempt from the various taxes.
“We think that the informal sector comprises people who are trying to earn a legitimate living. We should allow them to be and support them to grow to a point where they can then have the ability to pay taxes”.
Oyedele confirmed that new tax reforms will target 5% of that sector, the middle class, and the elite and that the committee was drafting legislation to implement the necessary changes to the country’s tax system.
He stated that the new laws will ensure that reviews are upheld by future governments. “We don’t want this whole effort to go down the drain, after one or two years,” he clarified.
He also emphasised the need to raise the exemption threshold for small businesses and low-income earners, as it will be difficult to pay taxes while struggling to make ends meet.
Lately, the Nigerian government has been intensifying taxation efforts to generate revenue. In 2020, it increased the VAT rate from 5% to 7.5%.
Justification for tax waivers
It is instructive to note that when Tinubu took office a year ago, inflation had risen to unprecedented heights due to the removal of the petrol subsidy and refloating of the naira thus adversely affecting the cost of production, goods and services.
Food inflation currently stands at 40.1% while the general inflation is 33%, while the central bank increased interest rate twice this year all in a bid to tame inflation but this has hindered economic growth.
The electricity tariff for one category of Nigerians was increased by about 300%, for example. The telecommunications tariff is expected to rise soon.
In the view of some analysts, in order to boost revenue, the Tinubu administration had either introduced new taxes or begun an aggressive implementation of tax laws that were hitherto suspended. Specifically, the government directive to the banks to deduct stamp duty charges on mortgages just as banks began imposing charges on cash deposits above N500,000.
The rising cost of living in Nigeria has an impact on citizens’ well-being, chief among which is the skyrocketed increase in food and service prices. In April for instance, the federal government, through the Nigerian Electricity Regulatory Commission (NERC), announced a significant increase in electricity tariffs for customers under the Band A category to N225 per kilowatt-hour (kWh), a 240% surge from the initial N68 per kilowatt-hour (kWh).
Tax reforms with tears
Has have been argued by some analysts, the Tinubu government had been determined to reform the tax system to efficiency. But to many Nigerians, these tax reforms come at a time of increased corporate tax revenue in Nigeria.
According to the National Bureau of Statistics (NBS), corporate tax receipts surged by 150% in the second quarter of 2024, reaching N2.47 trillion ($1.5 billion). This spike is largely due to an 87% increase in contributions from foreign companies, which benefited from the naira’s devaluation following the unification of exchange rates.
VAT revenue also soared by 99.82% year-on-year, hitting N1.56 trillion ($950 million) in the second quarter of 2024. Despite these gains, many local businesses are still struggling to cope with the country’s economic shocks.
Tax incentives are a vital component of government taxation policies aimed at stimulating specific economic activities by reducing tax obligations. The United Nations Conference on Tax and Development (UNCTAD), defined tax incentive as any measurable advantage accorded to specific enterprises or categories of business by a government, to encourage them to behave in a certain manner. Many nations, particularly developing ones, leverage tax incentives and waivers to attract both domestic and foreign investment in critical sectors of their economies. Nigeria, like many other countries, utilises tax incentives to foster investment, exports, and job creation, and alleviate unemployment.
Infrastructure deficiencies remain a significant hurdle for businesses operating in Nigeria. Inadequate power supply, unreliable transportation networks, and underdeveloped communication systems can increase operational costs and hinder productivity. Businesses are often forced to invest in backup power generators, which add to the overall expenses.
Taxation and regulatory compliance are essential components of any business environment. However, in Nigeria, these factors can become overwhelming burdens. High taxes and unpredictable changes in tax policies can erode profitability and deter potential investors. Moreover, navigating a complex tax system can lead to inadvertent non-compliance, resulting in legal issues and penalties.
It is in this light that economic analysts see the period of independence anniversary as a golden opportunity for the current administration to redeem itself by making life and businesses easy for Nigerians. The policies on fuel subsidy removal, foreign exchange reforms, and frequent tariff reviews in the power sector have combined to add to the people’s woes.
The rising cost of living which is also taking a toll on food production has added to the frustration in the land with the prices of food items going beyond reach. Analysts therefore advised the government to remove all factors pushing away farmers from farms, insisting that Nigeria can still achieve food self-sufficiency if it gets its acts right.
In August 2024, the headline inflation rate further eased to 32.15% relative to the July 2024 headline inflation rate of 33.40%. Looking at the movement, the August 2024 headline inflation rate showed a decrease of 1.25% points when compared to the July 2024 headline inflation rate. However, on a year-on-year basis, the headline inflation rate was 6.35% points higher compared to the rate recorded in August 2023 (25.80%).
Experts said that when the government pursues its policies with sincerity and vigour, it won’t be difficult to bring down the nation’s level of inflation and make life easy for the people in no distant future. This is certainly the best independence anniversary gift that will make Nigerians happy.
Other tax relief measures under Tinubu
It may be recalled that the federal government had in July approved the implementation of zero percent import duty and exemption of value-added tax (VAT) on basic food items.
In a memo issued by the Nigeria Customs Service to its zonal commands sighted by our correspondent, they confirmed the new policy regime on zero-import duty.
“This is to confirm that His Excellency, Mr. President has approved the implementation of Zero percent duty rate (0 percent) and Value Added Tax (VAT) exemption on the under-listed basic food items with effect from 15th July, 2024 until the 31st day of December 2024,” the letter read.
The policy is restricted to the items listed in the letter such as maize, millet, rice, wheat , among others, and it is effective from July 15 until December 31 2024.
The letter said this measure is geared towards ameliorating the high cost of food items in the Nigerian market and shall be limited to the national supply gap to be determined by a committee set up by the Minister.
“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Program for some of the items listed,” the ministry noted.
Other items listed include husked brown rice, grain sorghum, and beans. These items had duty rate levy ranging from 30 percent – 5 percent.
A new tax regime that will minimise the cost of doing business, improve cost of living and promote cleaner energy has been unveiled by the Federal Government.
Value Added Tax (VAT) on cooking gas, diesel, Compressed Natural Gas (CNG) and electric vehicles, among others, have been removed.
Small businesses will also, beginning from January, be exempted from paying taxes to boost income and employment generation.
Presidential aide Dada Olusegun yesterday on his verified X handle @DOlusegun, posted: “As part of efforts to reduce the cost of living, enhance energy security, and speed up Nigeria’s shift to cleaner energy sources, the President Tinubu-led administration has removed VAT on the following: Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, Clean Cooking Equipment.”
He added that in order to incentivize the energy sector and reverse its long-time investment drought, the government introduced tax reliefs for deep offshore oil and gas projects.
Olusegun, quoting Minister of Finance Olawale Edun, said the decision is meant to attract global investments to the country’s deep offshore projects.
The Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs, fulfilling President Tinubu’s campaign promise.
Olusegun quoted the Coordinating Minister of the Economy as saying: “The Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs to attract global investments to Nigeria’s deep offshore projects.
“A reminder that the President, during his campaign, promised to incentivize investors who were divesting away from the country to favorable nations like Guyana and Angola.
“Increased oil production, among other benefits of these reforms, are expected to improve the earnings of the administration in order to implement its programs successfully.”
Small businesses get tax relief
In the new regulations, small businesses with annual turnover of not more that N2 million will from January 1 no longer pay taxes.
They must, however, possess Valid Tax Identification Number (TIN) to qualify for the relief.
A Finance Ministry source added that the regulation is designed to foster an environment where small businesses and manufacturers can benefit from tax exemptions, especially in sectors with low profit margins.
He stated that tax deducted at source would henceforth, not be regarded as an additional cost or separate tax but treated as an advance payment towards the final tax liability of the supplier.
This approach, according to him, is meant to ease the burden on businesses and ensure compliance without adding unnecessary financial strain.
Under the rules, failure to remit deducted taxes or to deduct tax at source will attract significant penalties. The penalty structure aligns with existing legislation under the Federal Inland Revenue Service (Establishment) Act and the Personal Income Tax Act.
The Federal Inland Revenue Service (FIRS) is expected to issue further guidelines to ensure their smooth implementation.
The measures are contained in ‘’Deduction of Tax at Source (Withholding) Regulations, 2024’’ signed by the Finance minister.
Edun said in a statement that the goals of the new tax measures include streamlining “the deduction of taxes at source from payments to taxable persons, reduce complexities, and promote ease of compliance for businesses.”
He added that the measures ‘’cover payments made under the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act. Among its objectives are promoting global best practices, reducing tax evasion, and curbing arbitrage between corporate and non-corporate structures.’’
“The objectives of these Regulations are to (a) set out the rules for the deduction of tax at source from payments to taxable persons under the Capital Gains Tax Act, the Companies Income Tax Act, the Petroleum Profits Tax Act, and the Personal Income Tax Act regarding specified transactions, ” the minister added.
The Federal Government on Wednesday delivered 10 Compressed Natural Gas(CNG) powered buses to Kogi State Government.
The CNG buses from the Presidential Initiative is part of the efforts to bring down the high cost of transportation.
The Programme Director and CEO of the Presidential CNG Initiative, Mr. Micheal Oluwagbemi,handed over the buses at the launching of the Conversion Incentive Programme in Lokoja.
The event was attended by Kogi Deputy Governor, Elder Joel Salihu, who represented the Governor Usman Ododo and the Minister of Steel Development, Alhaji Shaibu Abubakar Audu among other top government functionaries.
Oluwagbemi explained that the launching of this CNG Conversion Programme was a worthy of celebration because of the many benefit associated with it.
He stated that the opportunities have landed in Kogi State for the people to get their vehicles converted at a subsidised cost of about 40%.
He called on the people of the State to take advantage of the of conversion incentive programme to reduce the high cost of living in Kogo State.
Salihu, while launching the buses, commended the efforts of President Ahmed Bola Tinubu for the initiative.
He explained that the State has already keyed into the initiative to reduce high of transportation, noting that no fewer that 250 youths would be trained on CNG through Nigeria /KoreaFriendship Institute (NKF) in Lokoja.
Audu said the Renewed Hope Agenda of President Ahmed Bola Tinubu has been brought to the door steps of the masses in Kogi State .
Audu stated that reduction of 40 percent in transportation through CNG vehicles was a good development, stressing the economy was at the verge of collapsing and that is the reason Mr. President took a decision to address the situation.
“Ajaokuta Steel Company will play a significant role as Ajaokuta is a hub for gas which will be translated to others,” he said.
• Labour, students, FCT get 64 to mark nation’s independence
• It’s major step to fight inflation, says Edun
The Federal Government is looking forward to a huge reduction in reliance on petrol with about $175 million worth of investments in Compressed Natural Gas (CNG) vehicles.
At least 700 CNG-powered buses are expected.
Thousands of conversion kits and centres are underway.
Yesterday, the first batch of 64 buses were given to Labour centres, students and the Federal Capital Territory (FCT).
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who inaugurated the vehicles at Aso Villa yesterday, described them as a major step in curbing inflation, now on a downward trend.
Project Director of the Presidential Initiative on CNG, Mr. Michael Oluwagbemi, said: “Since our founding exactly one year ago when Mr. President announced the Presidential CNG initiative, we’ve been able to move the nation forward.
“Nigeria had seven conversion centres this time last year. Today, we can boast of over 125.
“We’ve tracked over $175 million investments in the sector coming into mother stations. An additional 12 mother stations have been commissioned between last year and today.
“We’ve seen additional refuelling stations being invested in; about 75 of them are currently under construction, and the commissioning of about 12 already this year. We expect another 25 before the end of the year.
“Jobs are being created. Just last year, we could boast of just less than 100 conversion technicians in Nigeria.
“I visited a workshop in Lokogoma where the gentleman spoke about training about 40 new technicians every week. NITT, NADDC, and all of these institutions are training technicians every day.
“Beyond this, over 34,000 conversion kits have already been ordered, and we have more than half of that in our hands and are already being distributed. Conversion is taking place across Nigeria.
“Yesterday (Saturday), 53 conversion centres in eight states were launched; we hope by next week, an additional two states will join the train, and slowly but surely, all 36 states of Nigeria and the FCT will have conversion centres.”
Information and National Orientation Minister Mohammed Idris, in a breakdown of how the 64 buses were shared, said: “Forty of these buses are going to the labour unions; 20 of the buses are going to the student unions, and four will now be here in the Federal Capital Territory.
“This is not all. Over 700 of these buses have already been ordered. These are the first sets we are giving out to symbolise the official commencement of this initiative of Mr. President.
“So, don’t say that you only have 64 buses to cater to the whole of this country. It’s a necessary first step by government.”
Idris argued that since CNG costs far less than petrol, Nigerians should expect to save 60 per cent on transportation costs when the initiative goes fully operational.
He explained: “You will spend far less to fuel it. Filling the two tanks you have seen here will cost you about N15,000, as against N72,000 for petrol. It’s a drastic reduction. The private sector is already contributing.
“This is beginning from those who need it the most; the working class will get this. But beyond that, everybody will feel the impact.
“It’s a promise that Mr president has kept to Nigerians, and we know that very soon, more of these buses will ply all the roads of this country.”
Asked about the possible hazard of having the gas cylinders positioned in the vehicle, Idris said: “Yes, we considered this. There is no risk of explosion. The cylinders themselves are bulletproof. There are no joints, meaning they are not welded at any joint or parts.
“So, they are intact. They are safe, and you would not expect to see any explosion happening. The safety of Nigerians and the buses were considered in the design and supply of these cylinders”.
Edun, who led the government delegation that included Idris, the Minister of Budget and Economic Planning Abubakar Bagudu, and the Minister of State for Youth Development Ayodele Olawande, stated that inflation has peaked and is now declining, thanks to the President’s determination to keep it under control.
“This significant event is a major step in the fight against inflation. We’ve had an initial spike in inflation. Now, it has peaked, and it is coming down.
“Mr President and the whole team are determined to ensure we keep inflation coming down. This is one of the major ways CNG-fueled transportation will reduce costs.
“CNG-fueled vehicles cost one-third of the petrol-fueled vehicle. So, instead of paying N50,000 to fill a tank, you’ll be paying N15,000. That’s a huge contribution towards fighting inflation and giving us lower costs.
“This also marks another important element of the President’s policies. It is transitioning to cleaner fuel, but most importantly, cheaper fuel for Nigerians.
“The emphasis is on mass transit, to intervene on the side of workers so that they have cheaper transport that helps them cope with the increased price level generally, which was an inevitable fallout of improving the economy,” said Edun.
Secretary-General of the Trade Union Congress, Mr. Nuhu Toro, expressed gratitude for the CNG buses but noted that the number provided is inadequate.
Toro said: “This step forward brings us closer to a future where workers and the planet benefit from such forward-thinking policies, which is commendable.
“However, while we deeply appreciate this donation, we must acknowledge a concern: the number of buses provided is not fully proportional to the needs of the workforce. Though appreciated, they are not enough to address the logistical challenges we face.
“With 36 states across the federation and a large population of workers under the TUC and the NLC, we urge the government to do more…expand this initiative, providing additional resources to ensure that every worker can benefit from this programme.”
The Head of International Relations of the Nigeria Labour Congress, Mr. Uchenna Ekwe, echoed a similar concern.
Ekwe said: “If we get more busses, the effect will translate immediately, and once it translates, you will know. If people start entering these buses and feeling the impact, they will shout about it in their neighbourhoods.”
National Association of the Nigerian Students (NANs) President Lucky Emonefe, expressed gratitude for the CNG busses and the student loan initiative, saying it highlighted the President’s commitment to the welfare of Nigerian students.
Experts say CNG-fueled vehicles offer a huge cost savings advantage, consuming only one-third of the fuel of petrol-powered vehicles.
This translates to significant savings for commuters, with fuel costs reduced by up to 66 per cent.
The initiative is part of the President’s policy to transition to cleaner, cheaper fuel for Nigerians, focusing on mass transit to support workers and help them cope with increased price levels.
… CNGi receives $175m investments in one year — Project Director
… As Labour unions demand more buses to meet workforce demand
The federal government on Sunday, September 29, handed over 64 Compressed Natural Gas (CNG)-powered buses to the organized labour force and student body at the State House, Abuja, as part of its CNG pilot programme.
Edun led the government delegation that included the Minister of Information and National Orientation, Mohammed Idris, the Minister of Budget and Economic Planning, Abubakar Bagudu, and the Minister of State for Youth Development, Ayodele Olawande.
Edun stated that inflation has peaked and is now declining, thanks to the President’s determination to keep inflation under control.
CNG-fueled vehicles offer a huge cost savings advantage, consuming only one-third of the fuel of petrol-powered vehicles. This translates to significant savings for commuters, with fuel costs reduced by up to 66%.
The initiative is part of the President’s policy to transition to cleaner, cheaper fuel for Nigerians, focusing on mass transit to support workers and help them cope with increased price levels.
“This signifies a major step in the fight against inflation. We’ve had an initial spike in inflation. Now, it has peaked, and it is coming down. Mr president and the whole team are determined to ensure we keep inflation coming down. This is one of the major ways CNG-fueled transportation.
“CNG-fueled vehicles cost one-third of the PMS of a petrol-fueled vehicle. So, instead of paying N50,000 to fill a tank, you’ll be paying N15,000. That’s a huge contribution towards fighting inflation and giving us lower costs.
“This also marks another important element of the President’s policies. It is transitioning to cleaner fuel, but most importantly, cheaper fuel for Nigerians. The emphasis is on mass transit, to intervene on the side of workers so that they have cheaper transport that helps them cope with the increased price level generally, which was an inevitable fallout of improving the economy,” said Edun.
Speaking earlier, Minister of Information and National Orientation, Idris said 40 buses would go to the labour unions, 20 to the student unions and four will transport passengers within Abuja.
He said “this is a necessary first step that the government has taken, and we are giving out 64 buses to commemorate the 64th independence anniversary of our great country.
“40 of these buses are going to the labour unions. You heard the representative of the labour here accepting them. 20 of the buses are going to the Students Union, and about four will now be here in the Federal Capital Territory.
“Now let me emphasise that this is not all. Over 700 of these buses have already been ordered. These are the first sets we are giving out to symbolise the official commencement of this initiative of Mr. President. So don’t say that you only have 64 buses to cater to the whole of this country. It’s a necessary first step by government.”
Idris argued that since CNG costs far less than Premium Motor Spirit, Nigerians should expect to save 60 per cent on transportation costs when the initiative goes fully operational.
He explained, “You will spend far less to fuel it. Filling the two tanks you have seen here will cost you about N15,000, as against N72,000 for Petrol. It’s a drastic reduction. The private sector is already contributing.
“This is beginning from those who need it the most; the working class will get this. But beyond that, everybody will feel the impact.
“It’s a promise that Mr president has kept to Nigerians, and we know that very soon, more of these buses will ply all the roads of this country.”
Asked about the possible hazard of having the gas cylinders positioned in the vehicle, Idris said, “Yes, we considered this. There is no risk of explosion. The cylinders themselves, as you have heard, are bulletproof. There are no joints, meaning they are not welded at any joint or parts.
“So, they are intact. They are safe, and you would not expect to see any explosion happening. The safety of Nigerians and the buses were considered in the design and supply of these cylinders”, Idris said.
The Project Director of the Presidential Initiative on CNG, Mr. Michael Oluwagbemi, provided updates on the initiative’s progress, including the establishment of over 125 CNG centres, $175m invested in the past year, 37 conversion centres expected before the end of 2024 and over 17,000 conversion kits supplied.
He explained, “Since our founding exactly one year ago, when Mr. President announced the Presidential CNG initiative, we’ve been able to move the nation forward. For one, Nigeria had seven conversion centres this time last year. Today, we can boast of over 125.
“We’ve tracked over $175m investment in the sector coming into mother stations. An additional 12 mother stations have been commissioned between last year and today. We’ve seen additional refuelling stations being invested in; about 75 of them are currently under construction, and the commissioning of about 12 already this year. We expect another 25 before the end of the year.”
Oluwagbemi said the PCNGi is creating jobs as more technicians are trained in vehicle conversion and maintenance.
“Jobs are being created. Just last year, we could boast of just less than 100 conversion technicians in Nigeria. Yesterday, I visited a workshop in Lokogoma where the gentleman spoke about training about 40 new technicians every week. NITT, NADDC, and all of these institutions are training everyday.
“Beyond this, over 34,000 conversion kits have already been ordered, and we have more than half of that in our hands and are already being distributed. Conversion is taking place across Nigeria. Yesterday, 53 conversion centres in eight states were launched; we hope by next week, an additional two states will join the train, and slowly but surely, all 36 states of Nigeria and the FCT will have convention centres.
Also speaking, Secretary-General of the Trade Union Congress, Nigeria, Mr. Nuhu Toro, expressed gratitude for the CNG buses but noted that the number provided is not fully proportional to the needs of the workforce.
Toro said, “This step forward brings us closer to a future where workers and the planet benefit from such forward-thinking policies, which is commendable.
“However, while we deeply appreciate this donation, we must acknowledge a concern: the number of buses provided is not fully proportional to the needs of the workforce. Though appreciated, they are not enough to address the logistical challenges we face.
“With 36 states across the federation and a large population of workers under the TUC and the NLC, we urge the government to do more…expand this initiative, providing additional resources to ensure that every worker can benefit from this programme.”
The Head of International Relations of the Nigeria Labour Congress, Mr. Uchenna Ekwe, echoed a similar concern.
Ekwe said, “If we get more busses, the effect will translate immediately, and once it translates, you will know. If people start entering these buses and feeling the impact, they will shout about it in their neighbourhoods.”
The National Association of the Nigerian Students, Lucky Emonefe, expressed gratitude for the CNG busses and the student loan initiative, saying these initiatives highlight the President’s commitment to the welfare of Nigerian students.
The federal government has approved the first Compressed Natural Gas (CNG) conversion workshop for Ondo state.
It also planned to partner with the Ondo state government for the training of technicians in the state on the conversion of PMS-propelled vehicles to CNG vehicles.
This was announced by the Director General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin when he visited Governor Lucky Aiyedatiwa ahead of the Council’s 2024 management staff retreat with the theme; ‘Bridging the Gap: From Strategy to Action.
Osanipan explained that the National Automotive Industry Development Plan (NAIDP) was set out to increase the local content of assembled vehicles to 40 percent as well as attain 30 percent of local production of electric vehicles.
According to him, “We need to increase the local components of our vehicles. We have identified some local manufacturers of these parts and Lafbart, based in Akure is one of those we are supporting.
“If we support and build the capacity of our local manufacturers, we will not need to important over 400,000 tricycles to the country. We are going to save more and keep the money within’.
Governor Aiyedatiwa who was represented by his deputy, Olayide Adelami, assured NADDC management of his support to achieve their targets.
“I could remember when most raw materials for automobiles were still sourced in Nigeria, it resulted in economic stability because we were producing locally. We must move faster and increase the percentage of local components for automobiles.
“Let me also appreciate you for licensing Lafbart Innovations and Consulting Ltd, one of the vibrant firms in Ondo state and winner of the 2024 MSME of the year, to undertake the conversion of PMS-powered vehicles to CNG-powered ones. We will continue to work with you in many areas”.
The Presidential Compressed Natural Gas Initiative (PCNGI) is pleased to announce a series of events and activities planned for the week of Nigeria’s Independence. These initiatives aim to increase the adoption of Compressed Natural Gas (CNG) as a cleaner, more affordable alternative to fuel.
To kick off the lineup of activities for the independence week, starting today Friday, 27th September is the commencement of the CNG Transport Fare Drop Program which will include the signing ceremony with National Union of Road Transport Workers covering the Abuja to Itakpe Station – Ajaokuta Train Station – Adavi to convert fleet vehicles to CNG in return for 30-40% fare reduction. This programme will serve as an incentive to NURTW members in Abuja to convert their vehicles to CNG in exchange for a fare reduction.
Saturday, 28th of September 2024: The PCNGi will continue its nationwide commercial incentive program for commercial cars open day, expanding to 38 centers in Kaduna, Abuja, Lagos, Ogun, Oyo, Delta and Edo state.
On Monday, September 30th the signing ceremony with The Nigeria Police Trust Fund (NPTF) to operationalize the Nigerian Police CNG Conversion Program and train cadets to man strategic conversion centers the NPTF is investing in. This initiative will help train the police cadets to manage strategic conversion centers established by the NPTF.
To celebrate Nigeria’s 64th Anniversary of Independence on the 1st of October 2024, the PCNGi will be launching the CNG Tricycle Empowerment Program in collaboration with the Ministry of Youths. This program aims to provide over 2000 young Nigerians with the opportunity to own and operate CNG-powered tricycles in 2024.
The PCNGi will launch the Kogi State Conversion Incentive Program and hand over CNG buses to the state’s mass transit entity to ply interstate routes to Abuja, additionally, the PCNGI will inaugurate three new CNG conversion sites in the state. This event will take place on Wednesday, 2nd of October 2024.
To conclude the week’s activities the CIP would launch in Ekiti State where the handover of CNG buses to the states mass transit to ply interstate route to Abuja and inaugurate four new CNG conversion sites in Ekiti.
These events lined up for the independence week are part of the PCNGi ongoing efforts to promote the widespread adoption of CNG in Nigeria. By providing incentives, training, and infrastructure, the aim is to make CNG a more accessible and affordable fuel option for Nigerians.
For more details on the conversion centers and to access the full list of active centers, please visit: https://pci.gov.ng.
Chief Commercial Officer, Dana Motors, Matthews Kuruvilla has identified lower cost as one of the advantages of using Compressed Natural Gas (CNG) to power automobiles.
Kuruvilla said CNG was almost 70 per cent cheaper when compared to the normal fuel. He disclosed that as partners to the PICNG on the personal initiative for the conversion, the company had started the conversion with the commercial vehicles.
“It’s a good thing, because considering all the other schemes that have been rolling out, we’re actually seeing the results. The kits are here, the vehicles are here, so we are proud partners, and we are doing it in this location and other locations of Dana Motors.”
“So we’re most happy to be part of the PICNG initiative, and to convert as many vehicles as possible to CNG, starting with commercial vehicles. We’re also just converting ride-sharing vehicles; also we are reaching out to our private customers to convert their vehicles also to CNG,” Kuruvilla said.
He however stressed the need to increase the number of gas filling stations across the federation. He said already, Dana Motors was working with partners, who are also working with many partners.
Nothing there is available gas in Nigeria, Kuruvilla said: “We just have to have filling stations, which I’m sure in the next couple of months, and by the time these vehicles are on the road, we will have many filling stations in the country.”
Earlier, the Presidential Compressed Natural Gas campaign initiative which kicked off in Lagos attracted representatives from the Nigerian Association of Road Transport Owners (NARTO), Nigerian Union of Road Transport Workers (NURTW), Tricyclists popularly known as ‘Keke Napepe’ among others from across the Southwest including Ogun, Ekiti, Osun, Oyo states, gathered in their numbers to take advantage of the initiative
Kuruvilla said aside the intervention that the government is doing through the Dana Motors, that the company was planning to have CNG-ready vehicles, new vehicles that will be CNG retrofitted adding that Dana Motors is also the importers of Kia vehicles.
“So any Kia vehicle which is coming in, we can offer them as CNG vehicles also. The PiCNG is for converting existing vehicles, so we are also going to have new vehicles also with CNG. We’re getting CNG buses; we’re already supplying CNG buses for many states, in the MDS, so that also is there. “We’re also doing new vehicles with CNG,” he added.
The Managing Director and Chief Executive Officer, AUTOGIG International Resources Limited, Tope Bukola Ojo appealed to the commercial drivers to show up and convert their vehicles. This, he said, would benefit everyone who will be using them adding it’s not a one-off event nonetheless it’s going to be a continuous process.
The Managing Director and Chief Executive Officer who admitted that this initiative of Mr. President would really speak to access for mobility and also the sustainable development goals said as a friend of the enterprise, the company strongly believes that access to mobility is key to eradicating poverty and that energy diversification in the transportation sector is also key to eradicating poverty.
“Be it education, be it poverty, be it health, and be it whatever, what we have now is a mass appeal to Nigerians in the commercial transportation sector to show up and convert so that they can have access to cheaper fuel”, and when this is done, it reduces the cost of mobility and transportation, he said.
“When that happens, you put more cash in people’s pockets, somebody who is spending N30,000 to go to work, when the cost of transportation comes down, he now spends, say, N10,000. So that means he has additional N20, 000 to whatever his wage is. So above the minimum wage, this puts extra money.
And for those who are operating public transportation, they charge less money, they make more money, so they also have extra money. So by that, you are eliminating poverty, you are improving livelihood, and at the same time, you are making people have access to infrastructure and government services.
They can now go to hospital without spending much, they can go to schools without spending much, and they can go to the market without spending much”, he continued.
They can even enjoy their life, go to clubs, go to lounges, and have the best kind of life they want to live.
“So it’s just to appeal to our commercial drivers, now that this initiative is coming free of charge, it’s about putting one million naira extra in their pockets, and at the same time they’re also going to be making much more money”, Ojo added.
Previously, the Commercial Operations Manager of PICNG, Omoh Omoukhuede, said as part of the Compressed Natural Gas initiative, the federal government had created the Conversion Incentive Program. This, he said was geared towards ensuring that the CNG conversion was pushed out, especially through the mass transit and commercial vehicles routes.
According to him, the Presidential Compressed Natural Gas Initiative was set up by President Bola Tinubu to create not only the platform for CNG conversion, but also to ensure that it was adopted, accepted and implemented.
