CNG initiative unlocked $200m private sector investments – Presidency

The Presidency Thursday said the Presidential Initiative on Compressed Natural Gas(CNG)-vehicles has unlocked about $200 million private-sector investments in the last one year.

Similarly, it said the CNG-powered vehicles were strategically designed to harness the nation’s abundant gas resources to crash transportation cost by about 60%, and at the same time, foster a clean and healthy environment.

It also clarified issues around the Malaysian government’s plan to phase out CNG-powered vehicles and end the sale of natural gas vehicles by July 2025.

The CNG-powered vehicle initiative  was recently introduced in Nigeria as an alternative to petrol-powered cars.

…Gains of CNG

Reeling out the gains of the Presidential Initiative on CNG-powered vehicles at the All Nigeria Editors Conference (ANEC) Thursday in Yenagoa, the Bayelsa state capital, President Bola Ahmed Tinubu said the initiative was steadily contributing to the nation’s economy.

Represented by Minister of Information and National Orientation Mohammed Idris, the president said: “While oil remains a significant source of revenue for Nigeria, we are investing heavily in other sectors to diversify our economy for sustainable growth.

“The launch of the Presidential Initiative on CNG is a deliberate strategy to harness our abundant gas resources to bring down the high cost of transportation by about 60% and also foster a clean and healthy environment for our citizens. This initiative has unlocked close to $200 million in private sector investments in the last one year.

“There are several more signature initiatives like this, all aimed at bringing economic relief to the Nigerian people, and fueling a chapter of industrialization and prosperity, the likes of which we have never seen before.”

….On the Malaysian experience

In a related development,Special Adviser to the President on Information and Strategy, Mr.  Bayo Onanuga, allayed fears over the safety of the CNG-powered vehicles.

Onanuga spoke against the backdrop of reports on Malaysia’s plan to phase out CNG-powered vehicles come 2025.

Free Malaysia Today, a local media, had quoted Malaysia’s Minister of Transport, Anthony Loke, as saying this Monday during a press conference.

Loke said the decision was arrived at to protect road users and the public from the potential hazards posed by ageing CNG tanks.

 “These NGV tanks have a safe usage lifespan of approximately 15 years, and if they are not replaced, they become unsafe to use and may fail at any time.” From July 1, 2025, CNG-powered vehicles will no longer be registered or allowed to operate in Malaysia,” Loke was quoted as saying.

In a clarification, however, Mr. Onanuga said Malaysia’s policy was focused on the safety of Liquefied Petroleum Gas (LPG), and not CNG.

The presidential spokesman wrote: “Some clarification on Malaysia’s plan to phase out CNG-powered vehicles: “The Malaysian issue relates to the safety of LPG, NOT CNG. In the original report, Transport Minister Anthony Loke stated, ‘There are also some car owners who have modified their vehicles using liquefied petroleum gas (LPG) cylinders, which are very dangerous.’

“NGV covers both CNG and LPG. Nigeria, in its transition, has adopted CNG ONLY, not both, due to valid safety and cost concerns regarding LPG.

“Malaysia’s programme for CNG-powered vehicles struggled, achieving only a 0.2% conversion rate over 15 years. By contrast, nations like India, China, Iran, and Egypt have seen considerable success,” he further added.

According to him, Malaysia had challenges replacing 15-year-old tanks due to limited manufacturing capacity, while Nigeria, in its first year of adopting CNG, is already addressing this.

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