As Nigeria adops the Compressed Natural Gas (CNG) as alternative to petrol, the federal government says citizens will pay between N300,000 and N600,000 to convert their vehicles to PMS.
The Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, Engr. Michael Oluwagbemi revealed this in an interview with Daily Trust after the official commissioning of CNG conversion centres and a demonstration of converted CNG vehicles in partnership with the private sector at the head office of Femadec Group, one of the partners in Lagos.
He also stated that the FG is planning to establish 10,000 CNG vehicle conversion workshops in the near future.
Addressing the cost of conversion, Oluwagbemi explained that it may range between N300,000 and N600,000, depending on exchange rate compatibility.
He also mentioned that Nigeria aims to begin assembling and manufacturing CNG conversion kits, thereby creating further employment opportunities.
“Currently, we are importing conversion kits, but under this initiative as a relief for Nigerians, the government is offering discounts on the immediate conversion cost and is considering flexible payment options as the committee continues to review the CNG initiative, offering more discounts and incentives,” he added.
Additionally, the committee revealed that the initiative is expected to attract over $2 billion in investments into the Nigerian economy and create more than 250,000 employment opportunities for various professionals.
The Chief Executive Officer of Femadec Limited, Fola Akinola, expressed his anticipation for financing structures from banks through the federal government in addition to P-CNGi’s intervention to support the initiative.