Subsidy Removal: FG To Launch CNG Buses, Tricycles In May

The Federal Government will begin its compressed natural gas (CNG) programme in May, the presidency announced on Sunday, in time for President Bola Tinubu's first anniversary.

The announcement by Tinubu during his inauguration that the gasoline subsidy era would stop caused the price of the commodity to increase. To mitigate the effects of the elimination of subsidies, he did, however, pledge to implement measures like CNG-powered public transit buses and tricycles.

According to presidential adviser Bayo Onanuga, that programme is about to be implemented after nearly a year in office.

"The first phase of this year's project is expected to produce over 600 buses overall," he stated in a statement released late on Sunday.

Many thousands of tricycles will be assembled in a new plant located on the Lagos-Ibadan Motorway. The SKD parts, which are scheduled to be shipped to Nigeria early in May, are produced by the Chinese company LUOJIA in collaboration with its local partner to support the consortium of local providers of CNG tricycles. Before May 29, 2024, about 2,500 of the tricycles will be completed.

According to Onanuga, the Federal Government plans to acquire "over 20,000 CNG conversion kits, 100 electric buses, and 5,500 CNG vehicles (buses and tricycles), along with promoting the development of CNG refilling stations and electric charging stations."

"To fulfil the initiative's promise, the PCNGI committee is working with the business sector with the required tax and tariff waivers granted by President Tinubu in December 2023. In response, the private sector has made real investments totaling more than $50 million in mother stations, conversion facilities, and refuelling stations," he stated.

Plans are also in place for individuals who wish to convert their gasoline-powered cabs and buses.

He said, "Thousands of conversion kits with CNG cylinders are also ready for petrol-powered buses and taxis that want to switch to CNG."

"To reduce the cost of public transport, the Federal Government intends to provide them at subsidised rates, especially to commercial vehicle drivers."