The Presidential Compressed Natural Gas (CNG) Initiative announced that the Nigerian federal government has finalized plans to roll out 5,000 CNG-powered tricycles over the next three months.
Michael Oluwagbemi, Programme Director and Chief Executive of the Presidential CNG Initiative (P-CNGi), disclosed this on Thursday at the inauguration of the Luojia Tricycle Assembly plant in Ogun State.
Oluwagbemi stated that the government has introduced several incentives, including Value Added Tax exemptions and customs duty waivers for CNG-powered tricycles and other vehicles entering the country.
He added that the program would generate at least 60 direct jobs and 6,000 indirect jobs in Nigeria.
“The 5,000 tricycles form part of the initial units acquired by the government under the Presidential CNG Initiative, which aims to enhance affordable and eco-friendly transportation across Nigeria and to mitigate the impact of fuel subsidy removal,” Oluwagbemi said. “It will generate at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector in implementing this initiative would boost economic growth and increase tax revenue for the government.”
The announcement coincides with the government’s commissioning of a 5.2 million standard cubic feet per day (mmscfd) CNG plant in Lagos on Thursday.
In April 2024, the Nigerian government set the price of CNG at $1.57 per MMBtu. President Bola Tinubu has also directed ministries, agencies, and parastatals to purchase CNG vehicles.
