…as 1 Million CNG Conversion Kits Distributed to Attain Net-Zero Target by 2060
President Bola Tinubu has announced that the Compressed Natural Gas (CNG) initiative will save Nigeria over N2 trillion monthly, which represents funds currently used to import premium motor spirit (PMS) and automotive gas oil (AGO).
In a national broadcast addressing protests over the rising cost of living, President Tinubu outlined his administration’s economic reforms and called for dialogue instead of further protests. He emphasised that initiatives like the CNG programme are designed to alleviate the financial burden on Nigerians.
The CNG initiative, launched last year, aims to reduce transportation costs by 60 per cent, which will help curb inflation. The administration plans to distribute conversion kits at low cost to commercial transporters, who account for about 80 per cent of PMS consumption in the country.
“Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a nation dependent solely on oil-based petrol, neglecting its gas resources to power the economy,” Tinubu said. “We were using our hard-earned foreign exchange to pay for and subsidise its use.
“To address this, we launched the Compressed Natural Gas Initiative to power our transportation economy and bring costs down. This will save over two trillion Naira monthly, which is currently spent on importing PMS and AGO, freeing up resources for investment in healthcare and education.”
The government will distribute one million conversion kits at extremely low or no cost to commercial vehicles transporting people and goods, who consume the majority of imported PMS and AGO. Conversion centers are being set up across the country in partnership with the private sector.
Tinubu stated, “We believe that this CNG initiative will reduce transportation costs by approximately 60 percent and help curb inflation.”
Following the removal of the fuel subsidy on May 29, 2023, President Tinubu launched the Presidential CNG Initiative in October to provide affordable, safer and environmentally friendly energy. The initiative focuses on supplying compressed natural gas for mass transit.
To mitigate the impact of rising fuel prices, the Federal Government allocated N100 billion from the N500 billion palliative budget to purchase 5,500 CNG vehicles (buses and tricycles), 100 electric buses and over 20,000 CNG conversion kits.
In the first quarter of 2024, Nigeria spent around N2.6 trillion on petrol imports, a 46 per cent increase from the previous quarter, according to data from the National Bureau of Statistics (NBS).
This presidential announcement aligns with Nigeria’s energy transition plan, which emphasizes a net-zero pathway to reduce dependence on fossil fuels and increase renewable energy. The plan aims for net-zero emissions by 2060, proposing gas commercialisation until 2030, followed by a gradual fossil fuel phase-out. This strategy enhances energy independence and contributes to a more secure energy future.
The initiative is part of Nigeria’s ambitious climate goals outlined in the Nationally Determined Contributions (NDCs) of the Paris Agreement, aiming to achieve net-zero carbon emissions by 2060. Compressed Natural Gas, as a cleaner alternative to diesel and petrol, produces fewer toxic emissions, supporting these environmental targets.
President Tinubu’s CNG initiative not only addresses the immediate economic challenges but also positions Nigeria for a sustainable future, balancing economic growth with environmental responsibility. This approach is essential for the nation’s long-term prosperity and resilience in the face of global climate change.
