In a recent development, the federal government has unveiled the anticipated costs for Nigerians looking to convert their petrol vehicles to Compressed Natural Gas (CNG).
According to Engr. Michael Oluwagbemi, the Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, individuals can expect to incur expenses ranging from N300,000 to N600,000 for the conversion process.
This was revealed following the official commissioning of CNG conversion centers on Monday. The event also featured a demonstration of converted CNG vehicles, showcasing the collaborative efforts with the private sector.
The commissioning took place at the head office of Femadec Group, one of the initiative’s key partners located in Lagos.
Engr. Oluwagbemi shared insights into the government’s broader plans, stating that there is a proposal to establish 10,000 CNG vehicle conversion workshops in the near future.
Shedding light on the cost variations, he explained that the range of N300,000 to N600,000 is subject to exchange rate fluctuations.
Moreover, there are ambitious plans to initiate local assembly and manufacturing of CNG conversion kits. This move is not only aimed at reducing dependence on imports but also at creating additional employment opportunities within the country.
In an effort to ease the financial burden on Nigerians, the government is offering discounts on the immediate conversion costs.
Oluwagbemi mentioned that flexible payment options are also under consideration as the committee continuously reviews the CNG initiative, exploring more avenues for discounts and incentives.
The P-CNGi Steering Committee disclosed that this initiative is expected to attract over $2 billion in investments into the Nigerian economy.
Furthermore, it is projected to generate more than 250,000 employment opportunities across various professions.
Fola Akinola, the Chief Executive Officer of Femadec Limited, expressed optimism about receiving financial support from banks, facilitated by the federal government and supplemented by P-CNGi’s intervention, to strengthen and propel the initiative forward.
