The Presidential Initiative on Compressed Natural Gas (P-CNGI) has announced a 50% conversion cost reduction for transporters.
Programme Director, Michael Oluwagbemi, who was represented by Tosin Coker stated this in Abuja during the stakeholders’ event of the P-CNGI and Portland Gas in partnership with NASENI.
According to him, the reduction is to boost the sector by supporting the introduction of CNG buses and tricycles (Keke). Oluwagbemi said: “More importantly, in an effort to reduce the cost of public transport, we are catalyzing the sector by supporting the introduction of CNG buses and tricycles (Keke)
“In the next few days, you will witness these buses on the streets of Abuja, even as we also start to make conversion kits available at a 50% discount to the transport sector.”
Managing Director, Portland Gas, Folajimi Mohammed, said ordinarily, the conversion cost is N1.2 million, which the vehicle owners can recover in a year.
He explained the gas is susceptible to catching fire, and that it is lighter than air and its chances of fire outbreak are slim. According to him, CNG powered vehicles reduce fuel costs by 76% in comparison to fuel.
He said: “We are seeing close to about 76% savings in cost alone. So without a doubt, we know that adoption of CNG is almost inevitable.”