…as 2,700 not reported on take-off date
It appears that the Federal Government is making some adjustments to the schedules and modalities for the roll out of its Compressed Natural Gas (CNG) initiative targeted at reducing the cost of commuting for Nigerians and the haulage of good across the country as the ongoing economic crunch continues to bite hard.
This is as the Presidential Compressed Natural Gas Initiative (PCNGI) on Wednesday announced the commencement of the nationwide Mass Transit Conversion Programme, with no word about the introduction of 2,700 CNG powered buses and tricycles that were initially announced to be introduced hand in hand with the conversion programme.
The Federal Government’s CNG initiative is aimed at converting much of Nigeria’s commercial buses and haulage trucks currently being powered by diesel and petrol fuels to run on the much cheaper CNG.
By so doing, government aims to reduce the cost of commuting for citizens as well as the cost of the haulage of goods, especially foodstuffs, thus reducing the cost of living.
This follows marked increases in the cost of transportation as well as other goods and services on the back of the removal of fuel subsidy and the free float of the local currency, the naira on May 29, last year.
Procurement and logistics sources say government’s silence on the rollout of the 2,700 buses and tricycles on the schedules date on Wednesday, may have been prompted by challenges with the foreign vehicle manufacturers in meeting stipulated production timelines, or transportation logistics, or both.
While petrol typically costs about N620 per litre and diesel about N950 per litre, in normal times, CNG costs N213 per scm (standard cubic meter).
CNG costs approximately 35 percent the price of diesel and petrol, making it more attractive.
CNG is further said to offer much better fuel efficiency and in addition, CNG-propelled vehicles often come with a petrol-CNG combination, allowing the vehicle to run on both petrol and CNG.
Presently, about 40,000 trucks flood Nigeria’s roads and cities, but, only about 20-25,000 trucks are required for effective haulage business, experts say.
Analysts say that food prices would begin to noticeably trend downwards when up to 25 percent of haulage trucks in the country are CNG-powered and that the downward progression would follow incrementally as the volume grows, reducing the burden of high food costs on the wallets of teeming Nigerians, then freeing up disposable income for other pressing needs.
Meanwhile, the Presidency has recently been beating its chest about its readiness to launch about 2,700 CNG-powered buses and tricycles into the country’s transport system before May 29 when President Bola Tinubu would turn one year in office.
The Federal Government further said it is set to deliver 100 CNG conversion workshops and 60 refueling sites spread across 18 states before the end of 2024.
Weeks back, Bayo Onanuga, Special Adviser to the President on Information and Strategy, announced that government had concluded plans to launch and deploy CNG-powered vehicles for mass transit, starting this May, as part of activities marking President Bola Tinubu’s one year in office.
Onanuga said while considering buses and tricycles in addition, the government targeted to have about one million CNG-powered automobiles active by 2027. He said the committee led by Michael Oluwagbemi, the Programme Director and Chief Executive of the Presidential Compressed Natural Gas Initiatives, was set to deliver cheaper, safer and more climate-friendly energy vehicles.
It was further said that the project targeted to create 25,000 jobs and bring about savings to the country, to the tune of $2.5billion per one million CNG vehicles per annum.
Onanuga added that all was set for delivery of the first set of critical assets for deployment and launch of the vehicles ahead of the first anniversary of the Tinubu administration on May 29.
Wednesday’s statement by the PCNGI said the projects aims to reduce environmental impact and support the transition to sustainable energy for the transport sector.
The statement further said the initial phase of the conversion programe would be initiated in Lagos, Kwara, the Federal Capital Territory (FCT), and Rivers states and would be executed in partnership with major transport unions, including the National Union of Road Transport Workers (NURTW), the Road Transport Employers’ Association of Nigeria (RTEAN), and the Nigerian Association of Road Transport Owners (NARTO).
To ensure the success of the program, PCNGI said the rollout will commence in eight of over 120 designated conversion workshop sites, after which the key union partners, will have the opportunity to observe, evaluate the conversion process, and provide valuable feedback as the initiative plans to scale up operations across 15 states over the next 45 days.
The rollout, it said, will be backed by a 50 per cent discount on equipment and kit costs, and support to qualified union members for installation cost.
It said, “PCNGI and Rolling Energy are committed to driving Nigeria towards a more sustainable future. Establishing the Ilorin site and the nationwide conversion programme are pivotal steps in reducing our carbon footprint and enhancing the efficiency of mass transit systems”.
Interested public members are to visit Femadec, FixIt45, and Portland in Lagos, NITT, Nipco in Abuja, Total Support and Femadec in Abuja, and Rolling Energy in Ilorin for conversion.
