The Federal Authorities on Wednesday mentioned it hopes to attain conversion of 1 million out of about 10 million present petroleum autos within the nation to Compressed Pure Gasoline (CNG) by 2027.
The programme’s Director/Chief Government of the Pi-CNG, Engr. Michael Oluwagbemi made the disclosure throughout a stakeholders engagement assembly on agenda for the Presidential Initiative on Compressed Pure Gasoline (Pi-CNG) in Ilorin, Kwara State.
He added that the conversion will impact zero per cent import obligation waiver on autos with compressed pure gasoline (CNG) in addition to CNG kits as a part of incentives to encourage conversion of present autos to CNG-compliant autos.
“This can save Nigeria between about $2.5 bn and $3.5 bn a yr and getting us off nearly 10 million litres of petrol from what we’re presently utilizing.
“Federal Authorities in December 2023 round, authorised by Mr. President and issued by the Finance Ministry, by the workplace of the Particular Adviser, Power, had authorised import obligation waiver for all CNG auto autos in addition to kits, together with tools used to fabricate CNG autos in Nigeria. It’s the standing order of the Federal Authorities. It’s for individuals who are manufacturing CNG autos in Nigeria in addition to these bringing in autos. In the meantime, sure, there’s nonetheless must adjust to rules by the Customary Organisation of Nigeria, SON, and different regulatory businesses,” he mentioned.
The stakeholders engagement assembly had in attendance officers and members of transport unions in addition to affiliate unions in Ekiti, Kwara, Ondo, Kogi, and Osun states.
Oluwagbemi additionally listed the benefits of the CNG autos over petrol autos, saying that CNG autos run on clear and higher power for a protected atmosphere.
“CNG autos run cheaper (40 to 70 per cent cheaper to petrol autos), safer (18 per cent saver than petrol/diesel autos) and extra dependable. With CNG autos you go much less to mechanics for both oil change or, because the case could also be, than different autos,” he mentioned.
On the price of changing petrol autos to CNG autos, Oluwagbemi mentioned that the price of conversion is presently between N300,000 and N750,000.
He added that, “the Federal Authorities is already engaged on conversion incentives programme to be introduced on Could 29. It would begin progressively and get higher. We’re conversion of 1 million autos by 2027 and saving Nigeria about $2.5 billion and $3.5 billion a yr and getting us off nearly 10 million litres of petrol from what we’re presently utilizing.
“The fact is that by the point the FG is ready to present CNG kits and CNG conversion, the industrial autos that transfer about 90 % of the inhabitants, there will likely be no purpose for the FG to renege on the promise to take away subsidy and to make sure that Nigerians don’t pay for importation of poverty and export of jobs that was the order of the day after we are used to import petrol reasonably than exporting gasoline and utilizing our gasoline for the advantages of all Nigerians”.
He mentioned that conversion incentive programme would come with entry to gradual cost and discounted charges for the CNG conversion.