• Targets low transportation, production costs
The Presidential Compressed Natural Gas Initiative (P-CNGI) yesterday said it will provide free conversion kits and installations for commercial transport operators such as the Nigerian Association of Road Transport Owners (NARTO), National Union of Road Transport Workers (NURTW) and the Road Transport Employer’s Association of Nigeria (RTEAN), Uber, and Bolt operators.
They are to benefit from the 100 per cent discount through services from the 123 certified conversion workshops the P-CNGI has identified in 23 states.
This is also targeted at cutting down on reduced transportation and production costs.
The P-CNGI is part of the palliatives President Bola Tinubu has rolled out to cushion the impact of the removal of the fuel subsidy.
Consequently, the five companies participating in the Conversion Incentive Program signed agreements with the P-CNGI in Abuja yesterday.
They are NipCo Gas; Portland Gas Limited; Fix It 45; ABG Oil and Gas Limited; and the Nigerian Institute of Transportation Technology (NITT).
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Chief Executive Officer of P-CNG, Engr. Michael Oluwagbemi, said: “Commercial operators that are unionized will enjoy 100 per cent discount through their unions. They will get the kit and installation free.
“This will be done through certified conversion workshops that we are beginning to identify. We have identified about 123 of them. Five of them are here with us today, and as we expand across the country, we will be activating more of them.”
Oluwagbemi added that P-CNGI will sign another agreement next week. This agreement will give 50 per cent discount write-off on equipment and free installation.
“We will sign the agreement next week. You will be able to benefit from a 50 per cent write-off on the equipment, and then you will get the installation free. This means the government will pay these conversion workshops.”
Oluwagbemi noted that the measures are targeted at reducing the cost of transportation and production.
He added: “For the common man, it means lower costs. It means you will be able to fuel your vehicle at between 40 to 70 per cent 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 on some of these savings on to you, which will ensure that your transportation fare will be moderated.”
The initiative has over 20,000 kits readily available in the next three months, and they will be distributed across the 23 states that already have CNG capacity.