The Federal Executive Council (FEC), on Monday, ordered that all new vehicles, generators or tricycles procured by the government and its agencies must be powered by Compressed Natural Gas (CNG).
This was one of the major decisions reached at the FEC meeting on Monday.
President Bola Ahmed Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, in a statement on Monday in Abuja, disclosed that the order was in line with the President’s steadfast resolve to effectively utilise the country’s gas potential, easing the burden of high transportation costs on the masses while raising the standard of living for all Nigerians.
“The President’s directive is also in furtherance of Nigeria’s effort to transition to cleaner energy as CNG-enabled vehicles have been adjudged to produce lower emissions, even as they present a more affordable alternative for Nigerian energy consumers,” the statement said.
Tinubu also directed all government ministries, departments, and agencies to compulsorily purchase compressed-natural-gas-powered vehicles, informing them to set an example as government officials to the public.
He added that his administration’s energy reforms will not be reversed.
“This nation will not progress forward if we continue to dance on the same spot,” the statement added.
According to sources, the directive affected new requests by Nigeria Customs Service (NCS), and the shipper’s council, an agency of the marine and blue economy.
The sources said customs and the shipper’s council had sought approval to buy several hundreds of operational vehicles powered by petrol.
According to sources, their requests were approved on the basis that the vehicles are powered by CNG.
Also, a request by the Federal Capital Territory (FCT) to buy petrol generators was approved, however, the council insisted the generators must be powered by CNG or solar.
Likewise, the government also expects agencies to begin to convert petrol and diesel vehicles or generators to CNG.
On April 21, the presidency said it would launch the CNG initiative ahead of the first anniversary of Tinubu’s administration on May 29.
The presidency said the Presidential CNG Initiative (PCNGI) — in collaboration with the private sector –will deliver 100 conversion workshops and 60 refuelling sites across 18 states before year-end.
Also, on July 31, 2023, Tinubu said his administration made provision to invest N100 billion between then and March 2024 to acquire 3,000 units of 20-seater buses powered by CNG.
Two months later, the federal government announced value-added tax (VAT) would be waived on CNG bus purchases, with plans to waive duty on parts.
