Federal Government’s CNG Conversion Initiative Signals a Cleaner, Job-Rich Future for Nigeria

The Federal Government, through the Presidential Compressed Natural Gas Initiative (PCNGI) Steering Committee, has officially inaugurated seven Compressed Natural Gas (CNG) conversion centers nationwide.

Zacch Adedeji, Chairman of the Committee, made this announcement during the initiative’s launch, which included the delivery of two CNG buses to Olusesan Adebiyi, the Permanent Secretary of the State House, at the Presidential Villa in Abuja.

Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), represented Adedeji, who also serves as the interim Chairman of the Federal Inland Revenue Service (FIRS).

Adedeji emphasized that these CNG conversion centers underscore President Bola Tinubu’s administration’s commitment to leading the country’s energy revolution. He further revealed that additional CNG conversion centers would be established nationwide, marking a significant milestone in Nigeria’s journey towards a cleaner and more prosperous future.

Adedeji emphasized that this initiative is not solely about vehicle conversions but is also aimed at job creation. FIRS, under his leadership, pledged to waive the Value Added Tax (VAT) on CNG purchases and pursue duty exemptions throughout the value chain.

The objective is to forge a sustainable future by harnessing the nation’s abundant and environmentally friendly energy source: natural gas. This endeavor mirrors Tinubu’s dedication to environmental sustainability and economic advancement.

“The CNG buses being handed over to the State House symbolize a future where energy is cleaner and more cost-effective. This project goes beyond vehicle conversions; it is about generating employment opportunities. It reflects President Bola Tinubu’s commitment to both environmental sustainability and economic growth,” Adedeji stated.

Furthermore, AbdulRahman AbdulRazaq, Chairman of the Nigeria Governors Forum (NGF) and Governor of Kwara State, emphasized that this event marks a historic chapter in Nigeria’s transition from petroleum to gas-powered vehicles. He revealed that universities will be the initial beneficiaries of these CNG buses, and all state governments will participate in the initiative.

“For those of us in the gas industry, this is what we have advocated for decades. Nigeria is a gas-rich nation, with approximately 70 percent of our hydrocarbon resources being gas. So why are we heavily investing in crude oil?” AbdulRazaq questioned.

Meanwhile, Chinedu Oguegbu, Managing Director of OMAA Motors, a Nigerian automotive manufacturer, expressed gratitude to President Tinubu for the initiative. He noted that, in addition to supporting the energy transition, this project would further boost industrialization by promoting the use of locally manufactured vehicles. Oguegbu highlighted that this initiative would extend well beyond the natural gas value chain, creating thousands of job opportunities for the nation’s youth.

Previous post Naira Resilience, A Ray of Hope Amidst Global Economic Uncertainty
Next post Rising Inflation and Dollar Shortage, Nigeria’s Economy Grapples with 54% Drop in Foreign Exchange Inflow

Leave a Reply

Your email address will not be published. Required fields are marked *