The Federal Government has handed over 64 Compressed Natural Gas (CNG) buses to representatives of the Trade Union Congress (TUC), the Nigerian Labour Congress (NLC), and the National Association of Nigerian Students (NANS) as part of activities marking Nigeria’s 64th independence anniversary.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, led the federal government delegation to present the buses at the State House Conference Centre, Abuja.
Edun described the distribution of the buses as fulfilling President Bola Tinubu’s promise to provide affordable and efficient transportation to support Nigerians after the removal of fuel subsidies under the Presidential Initiative on Compressed Natural Gas (PCNGi).
He emphasised that the initiative aims to alleviate the burden on the poor and vulnerable and support macro-economic reforms that would position the country on the path to economic stability.
The Minister of Finance added that the CNG initiative aligns with Nigeria’s commitment to cleaner energy while leveraging its energy resources for industrialisation.
“Today marks another critical milestone in the policies of President Tinubu. It is a transition to cleaner fuel. It is for Nigerians. The emphasis is on mass transit. The minister said there is an emphasis on intervening on the side of workers so that they have cheaper transport to cope with rising prices.”
Further highlighting the CNG initiative’s impact on inflation, Wale Edun said President Tinubu and his team are determined to bring the inflation down through the CNG bus initiatives.
“We’ve had an initial spike in inflation, now it has peaked, and it is coming down. Mr President and the whole team are determined to ensure that we keep inflation coming down, and this is one of the major ways.”
The Coordinating Minister of the Economy noted that the fuel cost for CNG-powered vehicles is about one-third of the fuel for petrol-powered vehicles.
He gave assurances that motorists can now pay as low as N15,000 to fill a tank instead of N50,000 or more.
”Today, it is CNG. Tomorrow, it will be helping farmers to cope with the remainder of the wet season planting and then the dry season planting, starting from November, with fertiliser, inputs, seeds, and herbicides. This is all to get prices down and get the economy moving again,” he said.
NANS president Comrade Emonefe applauded the government for its commitment to education and student welfare, citing the provision of a student loan scheme for higher education.
“Nigerian students are happy to be celebrating the 64th anniversary of independence. We are not only happy with the CNG buses; we believe that the current President loves the welfare of students and has shown his commitment to this.”
The NLC representative noted that the benefits of the CNG buses would become more apparent once more buses are deployed across the country.
“If we get more buses, the effect will translate immediately to Nigerians. If people start entering these buses, they will publicise it in the public and their neighbourhood,” he said.
Michael Oluwagbemi, Programme Director/Chief Executive of PCNGi, said that since its establishment one year ago, over 125 conversion centres have been established, compared to the initial seven.
He disclosed that investment in the sector has exceeded $175 million, with 12 new mother stations commissioned and 75 more under construction.
“Technician training is being ramped up, with 40 new technicians trained weekly. Over 34,000 conversion kits have been ordered, with more than half already distributed.”
Oluwagbemi said vehicle conversions are taking place at 53 centres in eight states. He added that the centres would be expanded to all the 36 states and the FCT.
As Nigerians continue to clamour for the return of the subsidy regime, federal government says the solution lies in gas, targeting to get over 200,000 vehicles and tricycles to run on compressed natural gas as a cheaper source of energy.
