President Bola Ahmed Tinubu’s administration will roll out the first batch of compressed natural gas (CNG) vehicles before its first anniversary on May 29.
Presidential spokesman, Bayo Onanuga, disclosed this on Sunday, April 21, 2024.
Tinubu had announced an end to the fuel subsidy era during his inauguration, a move that triggered a hike in the cost of the product.
He, however, promised to put out measures including CNG-powered mass transit buses and tricycles to cushion the impacts of the subsidy removal.
According to Onanuga, a total of 2,700 CNG buses and tricycles will hit Nigerian roads nationwide in the initial phase by May 29.
This is part of the N100bn provision in the N500bn palliative budget to procure 5,500 CNG vehicles and 20,000 conversion kits following the Federal Government’s removal of fuel subsidy on Tinubu’s assumption of office last year.
Onanuga revealed that the private sector has already committed over $50 million in investments towards CNG refueling stations, conversion centers and mother stations across the country.
He said tax and duty waivers approved by President Tinubu in December 2023 helped in facilitating these investments.
“From the end of May, Nigeria will take some baby steps to join such nations that already have large fleets of CNG vehicles.
“All is now ready for delivery of the first set of critical assets for deployment and launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.
“About 2,500 of the tricycles will be ready before May 29, 2024…working towards delivering 200 units before the first anniversary of the Tinubu administration,” said Onanuga.
It added that in all, over 600 buses are targeted for production in the first phase which will be accomplished in 2024.
Onanuga added, “A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles. The SKD parts manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and expected to arrive early in May. About 2,500 of the tricycles will be ready before May 29, 2024.