By: Amadi Vincent Uzom
As the Federal Government accelerates the adoption of compressed natural gas in the country, the Presidential CNG Initiative said plans have been signed to deploy 5,000 CNG-powered three-wheelers in the next three months.
Program Director and Managing Director of P-CNGi, Michael Oluwagbemi, said this on Thursday during the inauguration of the Luojia Tricycle Assembly Plant in Ogun State. The Government continues to mobilize resources towards widespread adoption of CNG in the country.
Oluwagbemi said the government had introduced several incentives, including value-added tax exemption and customs duty exemption for CNG-powered three-wheelers and other vehicles entering the country.
He said the Government has also asked all ministries, branches, and agencies to purchase only CNG-powered vehicles in the future.
The move, according to the program director, will boost the adoption of cleaner energy solutions across the country. The Nigerian Midstream and Downstream Petroleum Regulatory Authority is offering CNG at a concessional price, offering a discount of more than 40% compared to current prices.
“The 5,000 tricycles are among the first units to be acquired by the government under the Presidential CNG Initiative, which aims to improve affordable and environmentally friendly transport across Nigeria and mitigate the impact of the withdrawal of fuel subsidies,” Oluwag Emily said.
According to the P-CNGi general manager, the new Luojia assembly plant will help create jobs and boost economic growth. “This will create at least 60 direct jobs and over 6,000 indirect jobs. “Partnering with the private sector in implementing this initiative will boost economic growth and increase government tax revenue,” he said.
“We are also working on a convenient payment plan for these people. In addition, conversion kits will be provided at a discounted rate to enable users to convert their existing vehicles to CNG.
The government is collaborating with various stakeholders to increase the number and capacity of these filling plants across the country,” he added.
This even as he called on Nigerians, in line with President Bola Tinubu’s promise, to see CNG as Nigeria’s cleaner energy future. Also commenting, Managing Director and CEO of TGIS, Mr. Damilola Agboola, “The removal of fuel subsidy and introduction of CNG by Chairman Bola Ahmed Tinubu constitutes a paradigm shift and This paradigm shift presented an opportunity in which Luojia came to Nigeria.
Commenting on the potential of the facility, the Director of Luojia Assembly Plant, Gabriel Idowu, said: “The factory has the capacity to assemble 120 three-wheelers per day and over 30,000 vehicles per year as capacity increases accordingly.” We also plan to increase capacity in terms of quantity. We have foreigners who will come from China to train our team on the ground. We are also willing to cooperate with people who have practical experience in this field.
Meanwhile, the CNG Program Manager, Oluwagbemi, noted that the program would enhance job creation.
“The Chairman sees the CNG program as an opportunity to create opportunities. We must catalyze job creation opportunities. When jobs are created, the government can collect taxes. We cannot have tax revenue when businesses disappear. Businesses pay taxes on their profits. Our main goal is to see businesses prosper,” he said.
“The assembly plant has the capacity to employ 40 Nigerians and has the capacity to expand to 300 people.
These are the people who will deploy 120 three-wheelers every day. While they’re at it, they’ll come up with new innovations on how to do it better. Within four to five years, they will come up with their design, so we will launch the Nigerian version of the three-wheeler here.
Former Commissioner of Transport in Lagos State, Dr.
Kayode Opeifa explained that the adoption of CNG three-wheelers would mean cheaper transportation, saying: “It is Nigeria’s energy security, apart from Because CNG is cheaper, transportation costs will decrease and inflation will decrease,” he said.
