Subsidy: FG to convert 10 million petrol vehicles to CNG

* To roll out 2 million conversion kits for free in 9 months

* Initiative will, among others, create over 100,000 jobs for Nigerians – Minister

By Nudoiba Ojen

The Federal Government has said it would convert 10 million Premium Motor Spirit vehicles to Compressed Natural Gas in the next 36 months.

The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, said that under the initiative, which was in partnership with the private sector, the FG planned to roll out over two million CNG conversions kits for free within the next nine months

A statement by the spokesperson for the minister, Louis Ibah, said that Ekpo stated this while on a panel tagged “Energy Talk” at the ongoing ADIPEC 2023 conference and exhibition in Abu Dhabi, United Arab Emirates.

The minister said, “Our ministry is working with the organised private sector to roll out over two million CNG conversions kits for free within the next nine months to push the utilisation of CNG as main fuel for vehicles nationwide.

“This initiative is aimed at converting 10million vehicles from PMS to CNG in the next 36 months,” he said.

Ekpo said key benefits of the initiative include, creating over 100,000 jobs for Nigerians, increasing government savings from reduced subsidy payout for the importation of PMS, reducing carbon emission following the utilization of clean gas to drive internal combustion engines.

He reiterated the Federal Government’s commitment in creating an enabling operational and fiscal environment to support investments in the upstream, midstream and downstream gas sectors.

According to him, the administration of President Bola Ahmed Tinubu is poised to promote business around Nigeria’s abundant natural gas resources.

The minister, who is the head of the Nigerian delegation to the event, listed several initiatives relating to government’s action to promote and support gas based industrialisation and decarbonisation agenda with the corporation and support of the organized private sector.

Top amongst these initiatives are: Decade of Gas (Upstream, Midstream and Downstream); getting cooking gas to every home and CNG for vehicles; gas flare commercialisation programme and gas to petrochemicals.

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