Dennis Erezi
The Federal government has disclosed plans to exempt import duties on vehicles with Compressed Natural Gas (CNG) and kits to encourage conversion of existing vehicles to CNG-complaint ones.
The National Director/Chief Executive of the Pi-CNG, Michael Oluwagbemi, disclosed this at a stakeholders engagement meeting on agenda for the Presidential Initiative on Compressed Natural Gas (Pi-CNG) in Ilorin, Kwara State.
Oluwagbemi said the Federal Government is hoping to achieve conversion of one million vehicles out of about 10 million existing petrol vehicles by 2027.
He said: “This will save Nigeria between $2.5 billion and $3.5 billion a year and getting us off almost 10 million litres of petrol from what we’re currently using.
Oluwagbemi said the tax exemption is a standing order approved by President Bola Tinubu for those who are manufacturing CNG vehicles in Nigeria as well as those bringing in vehicles.
“Meanwhile, yes, there’s still need to comply with regulations by the Standard Organisation of Nigeria (SON) and other regulatory agencies,” Oluwagbemi said.
The stakeholders engagement meeting with North central II and south West II was attended by chieftains and members of transport unions including NARTO, TOAN, RTEAN, NURTW, NATA and
Union of Tipper and Quarry as well as affiliate unions in Ekiti, Kwara, Ondo, Kogi, and Osun states.
Oluwagbemi stated that the CNG vehicles have advantages over petrol vehicles, saying they run on clear and better energy for a safe environment.
“CNG vehicles run cheaper (40 to 70 per cent cheaper to petrol vehicles), safer (18 per cent saver than petrol/diesel vehicles) and more reliable. With CNG vehicles you go less to mechanics for either oil change or, as the case may be, than other vehicles,” Oluwagbemi said.
Speaking on the cost of converting to CNG, the expert said that the cost of conversion is currently between N300,000 and N750,000.
He however said that: “the Federal Government is already working on conversion incentives programme to be announced on May 29. It will start gradually and get better.
“We are looking at conversion of one million vehicles by 2027 and saving Nigeria about $2.5 billion and $3.5 billion a year and getting us of almost 10 million litres of petrol from what we’re currently using.
According to him, the conversion incentive programme would include access to gradual payment and discounted rates for the CNG conversion.
Ekiti state commissioner for transportation, Kehinde Kolawole Ajobiewe, said that the CNG conversion programme would alleviate suffering of the nation’s transporters.
Also, Special Adviser to Ondo state governor on Transport, Olugbega Omole, described the programme as a laudable initiative that all should key into.
He said that Ondo State government planned to have 80 CNG vehicles, adding that the state government had launched five CNG buses for free school transportation due to high cost of petroleum.
The acting chairman, NURTW in Kwara State, Isa Ore, said that the transporters are in support of CNG conversion programme.
He, however, said that the challenge was how to convert the existing cars/vehicles to CNG compliant vehicles.
He called for reassuarance from government that the conversion will be beneficial to members.
