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The Federal Government has planned to spend an average of N36bn to convert 30,000 petrol or diesel-powered vehicles to start running on Compressed Natural Gas in the next 90 days.
The government said it had acquired 30,000 CNG conversion kits for distribution free of charge nationwide within the period.
The kits and the conversion costs were valued at the rate of N1.2m per vehicle, making it a total of N36bn within the next three months.
The move is to ensure the adoption of CNG as an alternative fuel for transportation.
The Project Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, stated this during the Park to Park CNG Mobilisation programme held at the Ojota Park in Lagos on Saturday.
Oluwagbemi said President Bola Tinubu was taking steps to ensure transporters use CNG to replace high-priced petrol and diesel, believing this would reduce the cost of transportation and by extension, the rising cost of food items.
The PCNGi boss said the President was interested in distributing one million CNG kits to commercial drivers across Nigeria as palliatives.
Oluwagbemi announced that the government was building more CNG stations where drivers could buy the commodity at below N250/kg
“The era of buying N750, N800, or N1,000/litre fuel is over. We are not doing that again. We will start using the gas under our feet so that we can buy it at N230/kg,” he stated.
He added that no fewer than 150 drivers would get vouchers to have their vehicles converted free of charge by any of the 14 workshops selected in Lagos.
He stated: "CNG offers benefits for our finances, the environment, and the food industry. When transportation costs decrease, food prices will also decrease, fulfilling the government's commitment to the public.
"This assurance comes from the Special Adviser to Lagos State Governor on Transportation, Sola Giwa, who is confident that the switch to CNG will cut transportation expenses by 50 percent."
