The Federal Government has rolled out plans to subsidise Compressed Natural Gas vehicle conversion kits by 50 per cent for road transport union members across the country.
The Chief Executive Officer of the Presidential initiative on CNG, Micheal Oluwagbemi, said this was part of moves to convert one million vehicles from the use of petrol to Compressed Natural Gas by 2027.
Oluwagbemi spoke at the Northern Stakeholders Engagement in Kaduna on Tuesday.
He said the Federal Government had procured over 20,000 conversion kits that would be immediately deployed for the conversion incentive programme.
He said the Presidential CNG Initiative had identified eight conversion centres in four states which include Kwara, Lagos, Abuja, and Rivers that would pilot the programme.
Oluwagbemi said, “We are launching what we called the Conversion Incentive Programme with members of the National Union of Road Transport Workers of Nigeria, Road Transport Employees Association of Nigeria, and National Association of Road Transport Owners being our immediate focus.
“This is because they are the operators in the road transport sector providing 90 per cent of the transportation in the country to members of the public.
“We will be making the conversion kits available to them at 50 per cent discount and we are also ensuring that the installation cost is free. We are already negotiating with our partners who will initiate that project in the next week.
“We have already identified eight conversion centres in four states, namely Kwara, Lagos, FCT, and Rivers that will pilot the programme. Immediately after that, we will start expanding to other conversion vents that we have identified and they are 120 of them across the country.”
He said the subsidised conversion programme was part of President Bola Tinubu’s goal of having one million vehicles converted to use CNG by 2027.
In his keynote address, Kaduna State Governor, Senator Uba Sani, commended the Federal Government’s initiative.
The governor, who was represented by the State Commissioner for Works, Ibrahim Hamza, said transportation remained the backbone of the nation’s economy.
“Transportation is one of the major promoters of our socio-economic activities which deals with the movement of persons, goods and freight from one point to another,” he said.
