The federal government has moved to reduce transportation costs by accelerating the adoption of compressed natural gas (CNG) as an alternative to petrol, which is sold at N380 per litre, compared to over N1,200 per litre for fuel.
The initiative, led by the Presidential Compressed Natural Gas Initiative (Pi-CNG), is part of efforts to lower transport costs for millions of low-income operators across Nigeria .
CREDIT SCHEME FOR TRANSPORT WORKERS
To achieve its objective, Pi-CNG has partnered with financial institutions to expand access to affordable credit for vehicle conversion to CNG.
Speaking at the flag-off ceremony in Abuja on Wednesday, April 22, Ismaeel Ahmed, the Chief Executive Officer of the initiative, said affordability remains the biggest obstacle to CNG uptake.
The initiative includes a partnership with the Presidential Compressed Natural Gas Initiative and Electric Vehicles, Moniepoint Microfinance Bank Limited, Nigerian Consumer Credit Corporation, and National Credit Guarantee Company Limited.
Ahmed said the programme is designed to eliminate the upfront cost barrier that has slowed the adoption of alternative energy vehicles.
He said: “This is a very significant partnership. The barrier is the cost of the conversion kit and installation.
“We are reducing that barrier. The kits are being supplied at cost, with no profit margin, because the goal is mass adoption.”
HOW WILL THE CNG CREDIT UP FRONT?
Under the new framework, motorists will be able to spread the cost of CNG conversion o ver several months through structured credit facilities, instead of paying up front.
Ahmed said repayment flexibility would vary depending on borrowers’ capacity.
He said: “Instead of paying, for example, N100,000 upfront, you can now spread it over one month, six months or shorter periods depending on agreement. “That flexibility makes adoption easier for everyday Nigerians.”
He added that the shift to CNG is expected to significantly reduce transport expenses for commercial operators such as tricycle and taxi drivers.
According to him, a typical keke rider could cut fuel expenses by 60 to 70%, while maintenance costs could also fall sharply.
Ahmed said: “If a rider spends about N50,000 weekly on petrol and maintenance, CNG could reduce that drastically. Fuel costs drop significantly, and maintenance reduces from weekly to monthly spending.”
Also, the Managing Director of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the programme will translate macroeconomic reforms into tangible relief for ordinary Nigerians, the Nation reports.
Nwagba said: “When this administration began, reforms such as exchange rate unification and subsidy removal improved the macroeconomic environment.
“The question has been how those gains reach people at the bottom. This initiative is part of that answer.”
NNPC RELEASES LOCATIONS OF CNG FILLING STATIONS
According to the NNPC, motorists in Lagos can now access premium CNG fuel at the following retail outlets:
Lagos Locations:
–Fola Agoro
–Amuwo Odofin
–Marina
–Agege By Pass
–Lakowe
–Odogunyan
Abuja Locations:
–Gaduwa
–Olusegun Obasanjo Way
–Gudu
–Dei Dei
–Gwagwalada
–Ushafa
