Government to unveil 5,000 CNG-powered tricycles in three months

The Presidential Initiative on Compressed Natural Gas (PICNG) ended its nationwide compressed natural gas (CBN) rollout yesterday with the unveiling of Touchstone Global Investment Services (TGIS) CNG-powered tricycle assembly plant in Shagamu, Ogun state.

The event marks the beginning of a campaign to unveil 5,000 CNG-powered tricycles in the next three months.

The Programme Director and Chief Executive of the Presidential CNG Initiative (P-CNGi), Michael Oluwagbemi, disclosed the plan during the commissioning of the Luojia tricycle assembly plant.

“The 5,000 tricycles form part of the initial units acquired by the government under the Presidential CNG Initiative, which aims to enhance affordable and eco-friendly transportation across Nigeria and to mitigate the impact of fuel subsidy removal,” Oluwagbemi said.

To support the initiative, Oluwagbemi said government has introduced several incentives, including value-added tax (VAT) exemptions and custom duty waivers for the tricycles entering Nigeria.

Also, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is providing CNG at a concessionary price, offering more than a 40 per cent discount on the current price to give users up to 70 per cent savings compared to fuel-powered tricycles.

Accordingly, he said, the FG has “mandated all ministries, departments and agencies (MDAs) to purchase only CNG-powered vehicles moving forward. This decision is expected to drive the adoption of cleaner energy solutions across the country.”

Highlighting the resultant economic benefits of the Luojia assembly plant, the CEO of P-CNGi said: “It will generate at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector in implementing this initiative would boost economic growth and increase tax revenue for the government.”

On the distribution and payment plan for beneficiaries, Oluwagbemi disclosed that the government is working with various tricycle organisations to identify potential beneficiaries under a loan scheme.

“We are also developing a convenient payment plan for these individuals. Additionally, conversion kits will be made available at discounted prices to enable people to convert their existing vehicles to CNG.

“The government is engaging with various stakeholders to increase the number and capacity of these refilling plants nationwide,” he added.

This is even as he urged Nigerians, in line with President Bola Tinubu’s promises, to embrace and adopt CNG as Nigeria’s future for cleaner energy.

The officer in charge of the assembly plant, Gabriel Idowu, said: “The plant can assemble 120 tricycles daily and over 30,000 in a year as it ramps up its capacity with time.”

Idowu noted that each unit of the tricycle would cost between N3 and N3.5 million. He assured the public of meeting the initial request of 5,000 units.

“We are also making plans to ramp up our capacity in terms of numbers. We have expatriates who will be coming in from China to train our team on the ground. We are also open to collaborating with individuals who have hands-on experience in the field.”