FG Subsidises CNG Conversion for Commercial Drivers
The Federal Government has announced 100 percent discount on Compressed Natural Gas (CNG) conversion to all unionised commercial drivers across the country, starting with the Federal Capital Territory (FCT).
It also stated that Ride-share companies also known as e-hailing taxis like Bolt and Uber will also benefit from a 50% discount on conversion kits with free installation.
Program Director/CEO of the Presidential CNG Initiative, Mr. Michael Oluwagbemi, while speaking at the Official Signing Ceremony of Memorandum of Understanding (MoU) with five workshop owners to drive the initiative, in Abuja, said the initiative, championed by President Bola Tinubu and supported by the Conversion Incentive Program, aims to reduce transportation costs significantly by lifting the financial burden off commercial drivers.
He noted that fueling vehicles with CNG could cut costs by 40% to 70% compared to traditional fuels like diesel and petrol, adding that this reduction is expected to alleviate transport-related inflation and lower production costs for industries across the nation.
“The Conversion Incentive Program is tackling the barrier to Nigerian commercial transport entities operators to convert from PMS to gas. Most of them have said that the cost of conversion is expensive, and so what we are doing here today is basically to respond to that concern.
“What is the government doing about it? First and foremost, for commercial operators that are unionized, I talk about the members of RETEAN, NATO, NURTW, through their unions, they can benefit from almost 100% discount.
That is, they will get the kit for free, and installation will also be done for them for free.
And this is going to be done through these certified conversion workshops that we have begun to identify.
“We have identified about 123 of them. Five of them are here with us today that we are going to be working with here in Abuja.
