….launches Rideshare conversion incentive program & the My CNG app
The Minister of Information and National Orientation, Alhaji Mohammed Idris, announced on Friday, August 9, that the federal government has reduced the cost of fuel for drivers by deploying Compressed Natural Gas (CNG), which is a cheaper fuel.
Speaking in Abuja during the “Launch of Rideshare Conversion Incentive Program & the My CNG App”, the minister said that drivers are expected to lower the transport fare for their passengers.
Idris, who was represented by the Director General of the Federal Radio Corporation of Nigeria (FRCN), Dr. Mohammed Bulama, emphasised that while the country is seeking to reduce the cost of petrol, the Presidential Compressed Natural Gas Initiative (P-CNGI) has proposed CNG as the alternative that the government has adopted for this purpose.
He described it as a cleaner and cheaper fuel designed to reduce the cost of fueling vehicles and machinery for respite for lives and livelihoods.
His words: “At a time when Nigerians are eagerly looking forward to lowering costs, CNG is one of the interventions guaranteed to bring reprieve to lives and livelihoods by reducing the costs of fueling vehicles and machinery as a cheaper and cleaner alternative to petrol and diesel.
“It embodies our aspirations for a country that is committed to the energy transition and the economic well-being of the state.
“Today, by virtue of the new converted initiative program, a segment of our working population that is made up of Ride Share Drivers stands poised to benefit from CNG conversion.
“And when the drivers benefit, their paid passengers will benefit by extension as well and some of the reduced cost will be passed on.”
He said since Tinubu established the P-CNGI, it has attracted the business community more than $50m in private investment towards the establishment of CNG conversion and refuelling facilities across the country.
He noted that it has also created thousands of jobs and opportunities for the technical skills of Nigerians.
Idris recalled that earlier this year, he was privileged to be a guest at a new CNG plant in Abuja and also witnessed the establishment of 40 CNG conversion centres.
He added: “So I can boldly say I have seen things first hand. And I know that in every corner of the country investments like this are ongoing.”
Gas, he said, has become very central to the economic development and prosperity of Nigeria.
The minister said in May, Tinubu commissioned three very critical gas projects in the Niger Delta, which the administration inherited and fast-tracked to completion.
He added that in June, he joined the Nigerian National Petroleum Company Limited (NPCL) and other stakeholders on a visit to Kaduna to observe the River Kaduna segment of the Ajaokuta Kaduna Kano Gas pipeline project (AKK), Nigeria’s gas project pipeline system.
Idris said across Nigeria, the Tinubu administration is driving the country into a giant construction site, putting in place a higher network of gas-critical infrastructure that will translate hope from vision to reality.
In his keynote address, the P-CNGI, Chief Executive Officer, Mr. Michael Oluwagbemi recalled that the country witnessed some unrest in the last two weeks due to the soaring cost of living.
He noted that transportation gulps a significant percentage of about 15% of average family spending and contributes 1.55% to the overall economy.
Oluwagbemi said in Nigeria 40% of the 12 million vehicles in the country are privately owned.
The P-CNGI CEO said: “We have all been witnesses to the incidents in our political scene in the last couple of weeks.
“And undermining these incidents are the rising cost of living. The rising cost of living means that more Naira is needed to live for daily life.
“And transportation forms a significant proportion of what we spend on a daily basis. Indeed, we know that transportation is responsible for 14% to 15% of an average family spending.
“It contributes about 1.55% to the overall economy with an average of 5.41% growth on a year-to-year basis.”
On Ride Share Drivers, he said since
41% of the about 12 million vehicles in Nigeria are privately owned with vehicle ownership concentrated in about one area, it means that the real opportunity for moving people around in an environment where there is low vehicle ownership is this Rideshare Technology that has become available across the land in the last 10 years.
The global ride-hailing market, he said, is valued at about $113billion as of 2020. It is anticipated to reach a value of $230 billion by 2026.
He added that it registered about 8.75% growth between 2021 and 2026.
Meanwhile, in his opening remarks, the Portland Gas Limited, Managing Director, Engr. Folajimi Mohammed said the P-CNGI has been instrumental in paving the way for innovation that will reshape the way people think about transportation and energy consumption in the country.
Mohammed added: “This initiative as a beacon of progress guiding us towards a future where cleaner energy is not just an option.”
On Ride Share, Mohammed said, “Today, one of the key components of this initiative is the Ride Share CNG conversion incentive program.
” It is a groundbreaking effort to encourage the adoption of CNG among shareride drivers.
“This program is a game changer offering substantial incentives for drivers to convert their vehicles to CNG thereby reducing greenhouse gas emissions and lowering fuel cost as well. “It is a win-win for both the environment and the economy and we at Portland Gas are fully committed to supporting this initiative in every way possible.”
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo said the rideshare sector is a vital part of the urban transportation system, providing flexible and cost-effective mobility solutions to millions of Nigerians, particularly the youth.
He said however, the rising costs of traditional fuels have posed a significant challenge to both drivers and passengers, often leading to higher fares and reduced access to affordable transportation.
Ekpo noted that the CNG Conversion Incentive Program, in conjunction with the My CNG App, is a bold response to these challenges.
He said “By offering a 50% discount for rideshare drivers upon sign-up and scheduling through the My CNG App, we are not only making CNG a more viable option but also easing the financial burden on drivers. This will translate to more affordable transportation options for the users.”
