In a statement on Sunday, the presidency announced the upcoming launch of the Federal Government’s compressed natural gas (CNG) initiative in May, coinciding with President Bola Tinubu’s first anniversary. The initiative, which aims to address the subsidy removal impact, includes plans for CNG-powered mass transit buses and tricycles.
Bayo Onanuga, a presidential aide, shared details of the initiative, stating, “In all, over 600 buses are targeted for production in the first phase this year.” Additionally, a new plant on the Lagos-Ibadan Expressway will assemble thousands of CNG tricycles, with 2500 expected to be ready before May 29, 2024.
Onanuga highlighted the government’s broader goals, mentioning the purchase targets of “5,500 CNG vehicles (buses and tricycles), 100 Electric buses and over 20,000 CNG conversion kits.” The initiative also involves developing CNG refilling stations and electric charging stations.
President Tinubu’s approval of tax and duty waivers in December 2023 has spurred private sector investment, with over $50 million committed to refueling stations, conversion centers, and mother stations. Moreover, plans are in place to provide subsidized conversion kits for petrol-powered buses and taxis, aiming to reduce the cost of public transportation.
According to Onanuga, “The Federal Government intends to provide them at subsidized rates, especially to commercial vehicle drivers to bring down the cost of public transportation.”
