Nigeria: Boost for Autogas As FG Introduces N230/Litre Cng

13 September 2024
Daily Trust (Abuja)
By Abdullateef Aliyu
  • Approves distribution of 10,000 free conversion kits

Amidst the rising price of premium motor spirit (PMS), otherwise known as petroleum, the federal government has approved the rollout of Compressed Natural Gas (CNG) for vehicles at N230 per litre.

The intent is to provide a cheaper and cleaner alternative to petrol, days after the price was jacked up selling as much as N900 per litre.

The Presidential Compressed Natural Gas Initiative (PCNGi), which was launched under President Bola Ahmed Tinubu's directive, is set to deliver wide-reaching benefits to Nigerians by significantly cutting fuel costs.

The introduction of CNG as a fuel source aligns with the government's drive towards energy diversification and is designed to bring immediate relief to Nigerians, especially those who depend on transport for their livelihood.

Tinubu was also said to have ordered 1 million free CNG conversion kits to be distributed to commercial vehicles involved in transporting people, food and goods.

These kits, along with free installation, will be rolled out over the next 18 months, to help the transport sector quickly transition to CNG and take advantage of the significantly lower fuel prices. The distribution of these kits will be carried out in collaboration with key partners, ensuring nationwide accessibility.

Immediate action: 10,000 free kits this week

In the first phase of the initiative, PCNGi will begin the immediate distribution of 10,000 free conversion kits this week. These kits will be provided at no cost to transport operators through key national transport associations, including the National Union of Road Transport Workers (NURTW), Moove, UBER and the Kaduna State Transport Authority (KSTA).

This is to allow commercial drivers to switch their vehicles to run on CNG, thus easing the cost burdens for both transporters and the public.

The distribution process is supported by PCNGi in partnership with NIPCO Gas, which will manage the conversion process through a network of authorised conversion centres across Nigeria. These centres will provide the necessary infrastructure and services to ensure a smooth transition for vehicles switching to CNG.

Commitment to cheaper, cleaner and sustainable energy

According to the PCNGi, the CNG adoption would position Nigeria towards embracing a cleaner, cheaper and more sustainable fuel alternative that benefits both the economy and the environment.

The government's goal is to distribute the full 1 million conversion kits by the end of 2025, ensuring that Nigeria's commercial transport sector is fully equipped to adopt CNG and reduce dependence on costly petrol and diesel.

Some of the 184 active conversion centres include Kojo Motors, Surulere; OttoXpress Limited, Ikoyi; AutoMedics Limited, Ilupeju; Briscoe Nigeria Plc, Rivers; Rolling Energy Limited, Kwara State; Nsik oil and gas company, Akwa Ibom, NITT, Gombe, NITT, Ekiti; NIPCO Gas, Ibafo; NIPCO Gas Ltd, Abuja; NIPCO Gas, Sapele; and BOVAS in Idinmu-Ikotun, Lagos among many others.

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