The Federal Government, through the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, is planning to establish 10,000 CNG vehicle conversion workshops in Lagos in the near future.
This announcement came during the official commissioning of CNG conversion centres and a demonstration of converted CNG vehicles in partnership with the private sector at the head office of Femadec Group, one of the partners in this initiative.
Additionally, the committee revealed that this movement is expected to attract over $2 billion in investments into the Nigerian economy and create more than 250 employment opportunities for various professionals.
Engr. Micheal Oluwagbemi, the Chief Executive Officer of P-CNGi, highlighted that CNG, as a domestically produced resource, has the potential to boost the nation’s economy and help stabilize the inflation rate.
He emphasised that Nigeria is rich in abundant natural gas suitable for both industrial and domestic applications, which can significantly reduce transportation costs.
Oluwagbemi stated, “We anticipate that the CNG conversion program, in collaboration with private sector companies, will attract investments of over $2 billion and create more than 250,000 jobs.
This initiative will require additional workforce, fostering opportunities in the automobile industry, spanning from manufacturers to technicians and workers at conversion and refueling stations.”
Addressing the cost of conversion, Oluwagbemi explained that it may range between N300,000 to N600,000, depending on exchange rate compatibility. He also mentioned that Nigeria aims to begin assembling and manufacturing CNG conversion kits, thereby creating further employment opportunities.
He added, “Currently, we are importing conversion kits, but under this initiative as a relief for Nigerians, the government is offering discounts on the immediate conversion cost and is considering flexible payment options as the committee continues to review the CNG initiative, offering more discounts and incentives.”
Fola Akinola, the Chief Executive Officer of Femadec Limited, expressed his anticipation for financing structures from banks through the federal government in addition to P-CNGi’s intervention to support the initiative.
Engr. Victor Ibrahim, a CNG technician, reported that the government is actively training more engineers who will soon be deployed across the country to contribute to the program.
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