Nigeria Launches Comprehensive Switch to Compressed Natural Gas to Curb Fuel Costs
The Nigerian government has announced a significant shift towards Compressed Natural Gas (CNG) as a more affordable and sustainable fuel alternative, effectively ending the era of exorbitant Premium Motor Spirit (PMS) prices.
According to Michael Oluwagbemi, Project Director and CEO of the Presidential Compressed Natural Gas Initiative, the government plans to commission 30,000 CNG-powered vehicles within the next 90 days, with a total investment of N36 billion for the conversion kits. These kits, valued at N1.2 million per vehicle, will be distributed free of charge nationwide.
Moreover, the government has set a target of one million CNG conversion kits, ensuring that all Nigerians can benefit from this initiative. The adoption of CNG as an alternative fuel for transportation is a crucial aspect of this program, allowing citizens to purchase fuel at a significantly lower price of N230/kg, compared to the previous prices of N750 to N1000 per liter.
Furthermore, President Bola Tinubu has directed all Ministries, Departments, and Agencies to procure CNG-powered vehicles as a palliative measure to mitigate the impact of the recent fuel subsidy removal.
In addition, the government plans to establish a comprehensive network of CNG refueling stations across the country, ensuring widespread accessibility and convenience for citizens.
