The federal government Friday officially flagged off the Presidential Compressed Natural Gas Initiative (PCNGI) with seven conversion centres across the country.
The flagged off was officiated by the Chief of Staff to the President Mr Femi Gbajibiamila.
The symbolic handover of the CNG buses to the State House was done by the Chairman of the Presidential CNG Initiative Steering Committee, Mr Zacch Adedeji.
Represented by the Chief Executive Officer of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed, the PCNGI chairman said government has waived the Value Added Tax (VAT) on the CNG buses purchase.
He said the goal was to build a sustainable future, leveraging Nigeria’s available cheap and clean energy source.
“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 waving 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.
He said that while the project is currently about the conversion of vehicles, it will also generate employment opportunities.
He emphasised that the delivery of the CNG project demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth in Nigeria.
He 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.”
He stressed that the buses running on compressed natural gas are not just a technical achievement, but a symbol of the President’s commitment to spearheading an energy revolution.
Also speaking, the Project Director of the Presidential CNG Initiative Mr Micheal Oluwagbemi said state governments have already indicated interest to incest in the CNG buses.
He said that the Rivers state government has already acquired a good number pf the buses to ease the transportation challenges of the state.
He said the current cost of conversion varies from the model and type of vehicle, adding that the President has ensured that as part of PCNGI, the committee would incentivise the cost for the Nigerian populace.
He said the federal government has ordered 55,000 conversion kits as part of the immediate palliative.
Also speaking, the chairman of the Nigeria Governors’ Forum and governor of Kwara state Mr AbdulRahman AbdulRazaq said Nigeria is the eighth-largest gas-producing nation in the world.
He said the country’s 70% hydrocarbon gas possession would strengthen its gradual transition from petrol-powered vehicles to gas–powered transit vehicles.
He called on the private sector to invest in the CNG buses programme, stressing that universities in Nigeria would be the first beneficiaries of the buses .
“This is the first major change to come. We all know that apart from having abundant gas resources, I think 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 our dreams are being fulfilled step by step,” he said.
Receiving the CNG buses, the Permanent Secretary of State House Mr Olusesan Adebiyi said the provision of the buses would enhance the efficiency of staff and enhance their punctuality at work.
He assured the PCNGI and partners that all operational buses of the State House would be converted to gas-powered vehicles.
Also speaking, the Managing Director of OMAA Motors, managing partner of PCNGI, Chinedu Oguegbu, lauded the patronage of made-in-Nigeria vehicles by the federal government saying that it is a way of deepening industrialization.
