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Monday, May 27, 2024

Converting Petrol Vehicles to CNG to Cost N600,000 – FG

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 this newspaper following the official commissioning of CNG conversion centers and a demonstration of converted CNG vehicles in partnership with the private sector at the Lagos head office of Femadec Group, one of the partners.
In addition, he indicated that the FG intends to set up 10,000 CNG car conversion workshops in the near future.
Oluwagbemi indicated that the cost of conversion might range between N300,000 and N600,000, depending on exchange rate compatibility.
He also mentioned that Nigeria aims to begin assembling and manufacturing CNG conversion kits, thereby creating further employment opportunities.
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.


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