The Federal Government, through the Presidential Compressed Natural Gas Initiative, has attracted a 50-million dollars deal for the conversion of commercial vehicles to run on Compressed Natural Gas (CNG).
The P-CNGi Programme Director/Chief Executive, Michael Oluwagbemi, said this on Saturday during a programme tagged “Compressed Natural Gas Roll Out: Prospects for Economic Growth”.
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Oluwagbemi said the deal, which was a private sector initiative, would enable the construction of CNG conversion workshop infrastructure across the country.
P-CNGi is a component of President Bola Tinubu administration’s palliative directed at providing succour to the masses following the removal of fuel subsidy.
To alleviate the burden of rising fuel prices, the Federal Government allocated 100 billion naira from the 500 billion naira palliative budget to buy 5,500 CNG vehicles (buses and tricycles), 100 electric buses, and over 20,000 CNG conversion kits.
He said the first phase of the initiative would roll out 100 conversion workshops and 60 refuelling sites across 18 states in Nigeria before the end of 2024.
In terms of reliability, he said it had regulations and standard developed by the Standards Organisation of Nigeria (SON).