Presidency Announces CNG Price To Drop To ₦230 Per Kg

Toyin Subaru, the Special Assistant to the President on Special Duties and Domestic Affairs, has reassured Nigerians that the forthcoming deployment of Compressed Natural Gas (CNG) buses will result in a reduced CNG price of ₦230 per kilogram.

This comes in conjunction with the government’s initiative to introduce 11,500 gas-powered buses nationwide next week, aimed at alleviating current transportation challenges.

Subaru emphasized that this endeavor will enable Nigerians to save two-thirds on transportation costs and encourage the use of CNG as a viable alternative to traditional petrol.

This announcement was made during a stakeholders’ meeting held at the Bank of Industry headquarters in Abuja on Sunday. The purpose of the meeting was to formalize a partnership with institutions such as the Nigerian Institute of Transport Technology and FEMADEC group to promote sustainable transportation in Nigeria.

Subaru explained, “With the CNG plan, we no longer need to import the fuel required for our vehicles. CNG is readily available in Nigeria. Our objective is to establish a network of CNG distribution stations across the country. Additionally, we aim to assist vehicle owners in converting their cars to utilize both petrol and CNG simultaneously.”

He further mentioned plans to develop an app that will help users locate nearby CNG stations. The anticipated CNG price of ₦230 per kilogram is significantly lower than the cost of petrol, which currently stands at ₦680 per liter, potentially saving Nigerians a substantial portion of their transportation expenses.

Subaru disclosed the Federal Government’s ambitious plan to have one million CNG-powered vehicles on Nigerian roads by 2027.

Michael Oluwagbemi, the Programme Director of the Presidential CNG Initiative, also emphasized the government’s intention to establish 1,000 conversion workshops across the country. This initiative is expected to generate over 50,000 jobs and mitigate the impact of subsidy removal.

Oluwagbemi stated, “Our goal in the Presidential CNG Initiative, as outlined by the President in his October 1st speech, is to make 55,000 conversion kits readily available to the Nigerian public to kickstart the CNG revolution. The palliative program, as per the President’s directive, will be in effect until March 31, 2024, and during this period, we aim to roll out 55,000 conversion kits.”

He acknowledged the challenge of having only seven functional workshops in the country, while a much larger number is required to meet the goal. However, he expressed optimism about increasing the number of workshops through partnerships with stakeholders and investors.

Oluwagbemi outlined the long-term benefits, which include saving about $20 billion over ten years, reducing transport-related inflation, and creating a substantial number of new jobs, especially for technicians and laborers, in the CNG sector.