The federal government has revealed that Nigerians will need to allocate a sum ranging from N300,000 to N600,000 for the conversion of their petrol vehicles to Compressed Natural Gas (CNG).
Engr. Michael Oluwagbemi, the Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, shared this information during an interview with Daily Trust. The disclosure followed the official inauguration of CNG conversion centers and a demonstration of converted CNG vehicles, conducted in collaboration with private sector partner Femadec Group, at their Lagos head office.
Oluwagbemi outlined the government’s ambitious plan to establish 10,000 CNG vehicle conversion workshops in the near future. Explaining the cost aspect, he clarified that it could fluctuate between N300,000 and N600,000, contingent on exchange rate dynamics.
Furthermore, he emphasized Nigeria’s goal to initiate local assembly and manufacturing of CNG conversion kits, thereby generating additional employment opportunities.
In terms of financial support for citizens, Oluwagbemi pointed out that the government is offering discounts on immediate conversion costs and exploring flexible payment options.
The initiative is not only anticipated to bring in over $2 billion in investments to the Nigerian economy but also create more than 250,000 job opportunities across various professions. Fola Akinola, the Chief Executive Officer of Femadec Limited, expressed optimism about securing financial backing from banks, coupled with P-CNGi’s intervention, to bolster the success of the initiative.
