The Nigerian government has revealed plans to roll out 2,700 buses and tricycles that run on Compressed Natural Gas (CNG) before President Bola Tinubu’s first year in office ends on May 29. Additionally, there will be 100 conversion workshops and 60 refuelling sites established in 18 states by the end of 2024, according to Bayo Onanuga, the Special Adviser on Information and Strategy. In a statement signed and titled ‘Presidential CNG initiative set for rollout,’ he announced that Nigeria will begin introducing the vehicles at the end of May, following in the footsteps of other countries with extensive CNG fleets.
Preparations are complete for delivering the initial batch of essential resources to support the implementation and commencement of the project before the one-year mark. The Presidency announced plans to have around 2,500 tricycles available by May 29, 2024, with a goal of providing 200 units before the administration’s first anniversary. Over 600 buses are set to be manufactured in the initial stage, with completion expected by the end of 2024. Following discontinuing petrol subsidies in October 2023, Tinubu introduced the Presidential CNG Initiative to provide affordable, environmentally friendly energy options.
Refilling stations and electric charging stations will be provided.
This initiative aims to provide compressed natural gas for mass transit. The Federal Government allocated ₦100bn from the ₦500bn palliative budget to acquire 5500 CNG vehicles (including buses and tricycles), 100 electric buses, and more than 20,000 conversion kits. Additionally, they plan to establish its refilling stations and electric charging stations nationwide. Onanuga confirmed that after careful planning and preparation, the committee leading the initiative is ready to fulfil President Tinubu’s commitment to alleviating the impact of the rising pump price on the public. This announcement included plans for a new plant on the Lagos-Ibadan Expressway where tricycles will be assembled, and Brilliant EV will also assemble electric vehicles using Semi Knocked Down components.
Also, the president elaborated, stating that the SKD components produced by LUOJIA, a Chinese company collaborating with a local partner to assist local suppliers of CNG tricycles, will be sent to Nigeria and are scheduled to reach the destination in early May. The PCNGI has partnered with private companies to provide 100 workshops on conversion and establish 60 refuelling locations in 18 states by the end of the year. Onanuga disclosed that JET, Mikano, Mojo, and Brilliant EV each have one plant across different regions assembling semi-knocked-down parts for CNG buses. JET has begun assembling buses in Lagos using SKD parts and is aiming to distribute a total of 200 units.
NNPC, NIPCO BOVAS and others are collaborating on the initiative.
EV manufacturer Brilliant EV is poised to start production of electric vehicles once the SKD parts are delivered. The electric vehicles will be targeted towards regions like Kano and Borno that currently lack access to CNG. In addition to being found in major Nigerian cities and university campuses, these products will soon be accessible in remote areas of the North East and North West once the gas pipeline projects started by the Buhari administration and completed by NNPCL. Onanuga expressed that the goal of reaching one million natural gas vehicles on Nigerian roads by 2027 signifies a significant shift towards sustainable energy in the sector.
Due to the president’s essential tax and duty waivers to lower public transportation costs, the private sector has already contributed more than $50 million towards establishing refuelling stations, conversion centres, and main stations. Therefore, operators must strictly adhere to a safety policy document. NIPCO and BOVAS are collaborating with the private sector to provide refilling services and conversion centres for vehicles across many states. NNPC Limited is now participating in a new initiative to establish CNG refilling and conversion centres across the country. The PCNGI has also collaborated with 22 different agencies to establish 80 standards for Natural Gas Vehicle Conversion and Associated Appliances in Nigeria.
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Onanuga emphasised the importance of monitoring by announcing the upcoming release of the MYCNG.NG App as part of the Presidential CNG Initiative. The Nigeria Gas Vehicle Monitoring Systems will be integrated into the app to display locations of the conversion and refuelling sites across the country. The crucial role of the private sector, including organisations like RTEAN, NARTO, and NURTW, as well as players in the downstream sector and financiers also emphasize in making the president’s vision of delivering one million gas vehicles achievable.
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