… more to follow in 2 weeks
At the weekend, the Federal Government handed over two CNG-fuelled buses to the management of the State House in Abuja, signposting the kickoff of the long-awaited Compressed Natural Gas (CNG) Initiative.
At the launch of the initiative at the Presidential Villa, Abuja, Chairman of the Presidential Compressed Natural Gas Initiative (P-CNGi) and Acting Chairman of Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, who performed the handing over ceremony, noted the launch also involved opening of seven pilot conversion centres across the country.
According to Adedeji, government has waived the Value Added Tax (VAT) on CNG purchases as well as seeking duty waivers for the value-chain.
Adedeji, who was represented by Mr. Farouk Ahmed, CEO, Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said plans were on for the government to establish multiple conversion centres across the nation in the next two weeks.
“I’m pleased to announce that there are currently seven conversion centres in Nigeria and the government is actively working to establish more of them. These plans will be rolled out, starting this afternoon, by the initiative.
“This project is not only about conversion of vehicles, but also about generating employment opportunities. It demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth.
“Moreover, it is my pleasure as your Chief Tax Officer, a position I hold alongside as Chairman of this initiative, to announce that we will be waiving the Value Added Tax on CNG purchases as well as seeking duty waivers for value-chain.
“The goal is to build a sustainable future, leveraging our own cheap and clean energy source; gas,” he said.
The delivery of the CNG project demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth in Nigeria, he said.
He therefore urged Nigerians to consider the buses as a symbol of a new beginning, “a journey towards the future, where the power of tomorrow starts today. Let this be a beacon for our country, Nigeria, and an inspiration to the world.”
The buses running on CNG are not just a technical achievement, but a symbol of President Tinubu’s administration’s commitment to spearheading an energy revolution, he noted.
Governor AbdulRahman AbdulRazaq, chairman of the Nigeria Governors’ Forum (NGF) and governor of Kwara State, said Nigeria is the eighth-largest gas-producing nation in the world and with 70%, of its hydrocarbon gas possession will strengthen the nation’s gradual transition from petrol-powered vehicles to gas–powered transit vehicles.
He called on the private sector to invest in the CNG bus initiative, saying universities in Nigeria will be the first beneficiaries of the buses and all state governments will also key into it.
“This is the first major change to come. We all know that apart from having abundant gas resources, I think we number eight in the world in gas reserves, gas is a cheaper means of transportation and cheaper means of energy.
“I remember former President Obasanjo established the Olokola Free Trade Zone because he wanted that zone to be powered by gas solely. So, as we transit forward, I encourage the private sector to invest in this gas programme.
“I commend the President as well because this programme, aside from kicking off at the Government House, our universities will be the first beneficiaries of the buses and all state governments will also key into this.
“Also, from my state, we’re going to invest massively and encourage our businessmen to invest massively in this transition. I can only praise Mr President that it our dreams are being fulfilled step by step,” he said.
On his part, Project Director of the Presidential CNG Initiative, Micheal Oluwagbemi, said states have already indicated investment interest in the CNG buses, saying Rivers State had already acquired a good number to ease the transportation challenges of the state.
On the cost of conversion, he said the current cost of conversion varies from the model and type of vehicle, noting that the President had ensured that as part of P-CNGi, the committee will incentivize the cost for the Nigerian populace.
Receiving the CNG buses on behalf of the State House, the Permanent Secretary, State House, Olusesan Adebiyi, said the provision of the buses will enhance the efficiency of staff and enhance their punctuality at work
He assured the P-CNGI and partners that all operational buses of the State House will be converted to gas-powered vehicles.
“For the P-CNGi, I want to assure you to prepare for us because henceforth, all the staff buses we’ll have to buy from you and I can assure you we’ll soon set out to consult you and enter negotiations with you for not just purchase, but also maintenance.
“The State House has some fuel dumps and I want to assure you right away that one of our fuel dumps will be converted to CNG with immediate effect, to guarantee frequent fueling of these I’ve discussed with you as well on the issue of maintenance.
“I want to also assure you that we will agree with you because one, this is new in Nigeria, and the spares are not readily available, so why not meet the manufacturers? The fact that these buses were assembled in Nigeria, it’s all Nigeria-made, is one thing that I will not forget in a hurry because as an engineer, I’ve been praying for this to happen and now it’s happening in my lifetime,” he said.
