The federal government has moved to reduce transportation costs by accelerating the adoption of compressed natural gas (CNG) as an alternative to petrol, which is sold at N380 per litre, compared to over N1,200 per litre for fuel.
The initiative, led by the Presidential Compressed Natural Gas Initiative (Pi-CNG), is part of efforts to lower transport costs for millions of low-income operators across Nigeria.
Credit scheme for transport workers
To achieve its objective, Pi-CNG has partnered with financial institutions to expand access to affordable credit for vehicle conversion to CNG, Punch reports.
Speaking at the flag-off ceremony in Abuja on Wednesday, April 22, Ismaeel Ahmed, the Chief Executive Officer of the initiative, said affordability remains the biggest obstacle to CNG uptake.
The initiative includes a partnership with the Presidential Compressed Natural Gas Initiative and Electric Vehicles, Moniepoint Microfinance Bank Limited, Nigerian Consumer Credit Corporation, and National Credit Guarantee Company Limited.
Ahmed said the programme is designed to eliminate the upfront cost barrier that has slowed the adoption of alternative energy vehicles.
He said: “This is a very significant partnership. The barrier is the cost of the conversion kit and installation. “We are reducing that barrier. The kits are being supplied at cost, with no profit margin, because the goal is mass adoption.”
