Nigerians are expected to spend between N300,000 and N600,000 to convert their petrol vehicles to Compressed Natural Gas, CNG, according to the federal government.
Engr. Michael Oluwagbemi, Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, revealed this in an interview with Daily Trust following the official commissioning of CNG conversion centers and a demonstration of converted CNG vehicles in partnership with the private sector at the Lagos headquarters of Femadec Group, one of the partners.
He also indicated that the FG intends to open 10,000 CNG car conversion facilities in the near future.
In terms of conversion costs, Oluwagbemi stated that they might range between N300,000 and N600,000, depending on exchange rate compatibility.
He also stated that Nigeria intends to start building and manufacturing CNG conversion kits, hence providing more job possibilities.
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.”
Additionally, the committee revealed that the initiative is expected to attract over $2 billion in investments into the Nigerian economy and create more than 250,000 employment opportunities for various professionals.
The Chief Executive Officer of Femadec Limited, Fola Akinola, expressed his anticipation for financing structures from banks through the federal government in addition to P-CNGi’s intervention to support the initiative.
(Credit: Daily Trust)