President Bola Tinubu has approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI).

The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, in a statement on Friday, said the establishment of the initiative was in furtherance of his commitment to easing the impact of fuel subsidy removal on Nigerians by reducing energy costs.

This transformative initiative, according to Mr Ngelale, is poised to revolutionise the transportation landscape in the country, targeting over 11,500 new Compressed Natural Gas (CNG)-enabled vehicles and 55,000 CNG conversion kits for existing Premium Motor Spirit (PMS)-dependent vehicles.

“While simultaneously bolstering in-country manufacturing, local assembly and expansive job creation in line with the presidential directive.

“The landmark initiative, which comprises of a Comprehensive Adoption Strategy, will include the following: Empowering Workshops Programme w/ Nationwide Network of Workshops, Local Assembly and Job Creation as key points of emphasis with an initial focus on mass transit systems and student hubs in order to significantly reduce transit costs for the general populace in the immediate term,” he said.

Furthermore, he said in line with the PCNGI’s determination to ensure seamless integration of CNG utility within the current midstream and downstream energy value chain to support its sustainability, the PCNGI would facilitate the provision of workshops across all geopolitical zones and states with essential kits and comprehensive training for newly employed staff, thus creating new opportunities for technical skill development and employment for Nigerians.

He explained that the new nationwide network of workshops, to be established through the initiative, would ensure widespread access and demand side utilisation of CNG technology and CNG-related expertise, thereby facilitating smoother transitions for vehicle owners for the wider benefit of the Nigerian economy.

Under the aegis of the PCNGI, Mr Ngelale said certain strategic objectives will be achieved.

He listed the objectives to include “the development of new stakeholder-operated Intrastate Mass Transit systems built on CNG, Support for states to onboard new CNG buses as part of their Intrastate Mass Transit network (wholesale conversion, retro-fitting and new purchase); and deployment of CNG buses through existing Private Mass Transit operators, including new financing programmes for operators through an innovative asset finance programme.

The programme will also incentivise investors to invest in CNG processing, distribution and utilisation by providing incentives for enhanced investment and partnership and delivering training and technology transfer to support the After-Sales Services and maintenance sub-industry to create sustainable jobs.

The statement said President Tinubu’s focus on assembling CNG-enabled vehicles within the country would stimulate economic growth, create employment opportunities, and bolster the nation’s automotive manufacturing capabilities.

“The launch of this initiative also underscores this administration’s commitment to fostering a cleaner environment by reducing carbon emissions and promoting energy security through domestic natural gas resources,” he said.

Earlier in August, the Nigerian National Petroleum Company Limited (NNPCL) announced it is partnering with NIPCO Gas Limited to develop Compressed Natural Gas (CNG) stations in the country.

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Mele Kyari, the NNPCL group chief executive officer, disclosed this at a press briefing in Abuja.

According to the NNPCL, the partnership is part of the company’s commitment to reducing its carbon footprint and providing cheaper alternative fuel to motorists in the country.

“As part of the NNPCL commitment to reducing carbon footprint and providing cheaper alternative fuel to motorists, the company is happy to announce a strategic partnership with NIPCO Gas Limited to develop Compressed Natural Gas (CNG) stations,” Mr Kyari said.

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