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Private Sector Pumps $50m into Presidential CNG Initiative

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presidential CNG initiative

By Adedapo Adesanya

Nigeria’s private sector has injected more than $50 million in actual investments in refuelling stations, conversion centres, and mother stations in the Presidential Compressed Natural Gas Initiative (PCNGI), which is set for initial rollout to the public by the end of May.

The Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, disclosed this in a statement on Sunday in Abuja, saying the programme was part of the many intervention programmes to reduce the burden of an increase in pump price on the masses.

To actualise the programme, President Bola Tinubu launched the presidential CNG initiative in October 2023 to deliver cheaper, safer and more climate-friendly energy.

He added that the government had provided N100 billion (part of the N500 billion palliative budget) to purchase 5,500 CNG vehicles, 100 electric buses and more than 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.

“With necessary tax and duty waivers approved by President Tinubu in December 2023, the PCNGI committee is partnering with the private sector to deliver the promise on the initiative.

“Also, a safety policy document on 80 standards and regulations that must be strictly adhered to by operators has been developed and approved to ensure CNG conversions are done safely and reliably,” he said.

Mr Onanuga said that the deployment of CNG buses and tricycles and the vision to get at least one million natural gas-propelled vehicles on the roads by 2027 would mark a major energy transition in the country’s transportation industry.

He said that the use of more expensive diesel and petrol would gradually be phased out, when many vehicles, including trucks, run on natural gas, adding that 30 of the 36 states had the gas in abundance.

“Remarkably, the Tinubu administration, in driving the nation to the desired destination, has flagged open a new industry, along with thousands of new jobs.

“Four plants owned by JET, Mikano, Mojo, and Brilliant EV located in various parts of the country are involved in the assembly of the Semi Knocked Down (SKD) components of the CNG buses.

“JET, which has received the SKD parts, is coupling the buses in Lagos and is working towards delivering 200 units before the first anniversary of the Tinubu administration.”

Mr Onanuga said that Brilliant EV would assemble electric vehicles meant for Kano and Borno, which would not have access to CNG for now as well as in key Nigerian cities and university campuses.

“In all, over 600 buses are targeted for production in the first phase that will be accomplished this year.

“A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles.

“The SKD parts, manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles, are set for shipment to Nigeria and expected to arrive early in May.

“About 2,500 of the tricycles will be ready before May 29, 2024.”

He said that thousands of conversion kits for petrol-powered buses and taxis that want to migrate to CNG are also ready with CNG cylinders.

The Presidential aide added that the Federal Government intended to provide them at subsidised rates, especially to commercial vehicle drivers, to bring down the cost of public transportation.

He revealed that the PCNGI was working with 22 other agencies, including the Standards Organisation of Nigeria and Nigeria Automotive Design and Development Council, to deliver 80 Natural Gas Vehicle Conversion and Associated Appliances Standards for the country.

He added that an app MYCNG.NG to embed the Nigeria Gas Vehicle Monitoring Systems would show CNG conversion and refuelling sites in the country.

“The Tinubu administration is an enabler of the evolving CNG industry. In collaboration with the private sector, the PCNGI is set to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states before the end of this year.

“The vision of Mr. President to deliver one million gas vehicles cannot be possible without the private sector, including the RTEAN, NARTO, NURTW, and players in the downstream sector of the transportation chain and financiers.”

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Stanbic IBTC Bank Partners Autochek to Boost Auto-financing, Disburses N4bn

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By Adedapo Adesanya

A top financial institution in Nigeria, Stanbic IBTC Bank, has partnered with Autochek, an automotive technology firm, to facilitate accessible and affordable car ownership in Nigeria.

This vehicle-financing collaboration combines Stanbic IBTC Bank’s extensive financial expertise and network with Autochek’s cutting-edge technology platform and robust dealer distribution network; streamlining the car-buying process and making it more accessible and affordable for Nigerians.

The car financing programme offered through this strategic alliance provides several key advantages for customers including competitive interest rates that enhance affordability, as well as flexible repayment plans.

Within six months, the collaboration has disbursed over N4 billion in loans since its inception in August 2024 furthering empowering numerous individuals to purchase their desired vehicles.

According to the company, there are approximately N1 billion in deals that are currently being processed.

The partnership is poised for continued growth and impact on the Nigerian automotive landscape, according to Mr Olu Delano, Executive Director, Personal and Private Banking at Stanbic IBTC Bank.

He made this known while speaking at the media parley held in Lagos to engage stakeholders in the industry.

“We are incredibly excited about the tangible impact of our collaboration with Autochek. This partnership has significantly lowered the barriers to car ownership; making it a reality for many Nigerians. At Stanbic IBTC Bank, we are dedicated to providing innovative financial solutions that cater to the evolving needs of our customers.

“We are committed to the long-term success of this partnership and its contribution to the growth and development of Nigeria’s automotive industry,” he added.

On her part, Ms Mayokun Fadeyibi, Chief Operating Officer at Autochek, highlighted the transformative nature of the partnership.

“Our collaboration with Stanbic IBTC Bank has revolutionised the car-buying experience in Nigeria. By leveraging technology and strategic partnerships, we have made car ownership more accessible, convenient, and transparent.

“We share Stanbic IBTC Bank’s commitment to driving growth in the automotive sector and look forward to expanding the reach and impact of this partnership.”

The partnership comes with a swift and efficient application process, that will allow customers to enjoy a smooth and convenient experience.

Also, Autochek’s platform and extensive dealer distribution network give customers access to various vehicles, ensuring they can find the perfect car to meet their needs.

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Lagos Reduces Red Line Train Fares by 30% to N1,000

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Abule Egba Bus Terminal

By Modupe Gbadeyanka

The Red Line train fares have been slashed by the Governor of Lagos State, Mr Babajide Sanwo-Olu, by 30 per cent to N1,000 from N1,500.

Mr Sanwo-Olu announced the cut in the fares on Tuesday during the commissioning of the Abule Egba Bus Terminal in the Orile-Agege Local Council Development Area (LCDA).

He disclosed that the intra-city rail transport was to make life easier for residents of the metropolis, noting that his administration was to enhance seamless mass transportation from the suburb to other parts of the state.

The bus terminal is strategically situated close to Lagos Red Line corridor, reflecting the government’s commitment to continuously enhance public transportation systems, strengthening connectivity and improving the overall experience for commuters.

Business Post reports that the Abule Egba Bus Terminal has features like loading bays, a terminal building with a customer service area, a waiting area, spaces for restaurants and other commercial services, offices for ground staff, public conveniences, a water treatment plant and provision for green energy, among others.

 “This is a public bus terminal that will aid seamless commuting from here to other parts of Lagos. This infrastructure reflects our commitment to continuously enhancing public transportation systems, strengthening connectivity, and improving the overall experience for commuters.

“We are dedicated to taking ongoing steps to advance and modernise transportation across the state,” Mr Sanwo-Olu disclosed, noting that efforts are being made to build two additional interchange hubs in Marina and Mile 2, while another bus terminal is at the advanced stage of construction in Iyana Ipaja axis.

He also announced that the state was expecting the arrival of new Compressed Natural Gas (CNG) buses and electric buses by the third quarter of the year to enhance bus services, urging residents to take ownership of the projects.

“This infrastructure has been made possible through your tax contributions. I urge you to take pride in it, protect it, and ensure that it remains safe from any harm or damage.

“By safeguarding these assets, we can all benefit from their long-term value and continue to build a better future for our community,” he stated.

On her part, the Managing Director of the Lagos Metropolitan Area Transportation Authority (LAMATA), Mrs Abimbola Akinajo, said bus terminals “offer central location for passengers to board and connect to other forms of transportation.”

According to her, the Lagos State government has provided bus terminals in Ikeja, Oshodi, Ajah, Oyingbo, Yaba, Ojota, Ifako Ijaiye and now at Abule Egba, with Iyana Ipaja bus terminal to be launched soon.

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Lagos Hikes BRT Fares by 18% Over High Operational Costs

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BRT buses

By Adedapo Adesanya

The Lagos Metropolitan Area Transport Authority (LAMATA) has increased fares for the Bus Rapid Transit better known as BRT across the state.

According to the Lagos State agency, an 18 per cent increment on all the routes will take effect from Monday, February 17, 2025.

This will impact Lagos commuters who already have to contend with high cost of food and energy amid a wider cost of living crisis in the country. Businesses are also not exempt as many workers commute to their various destinations via BRT buses.

“Please be informed that there will be an 18 percent increase in the bus fare on all Bus Reform Initiative (BRI) schemes,” part of the notice read.

“The fare increase is because of the increase in the cost of operations and the need to ensure that buses keep running and guarantee your movement around Lagos,” it added.

LAMATA called for the “understanding and cooperation” of passengers amidst the increment.

The Lagos State government had in November 2023 cancelled the 50 per cent transport fare discount on all BRT and reverted to the old prices.

“The 50 per cent rebate in transport fare in the regulated transport system in Lagos ends on Sunday,” LAMATA said then. “The statement informed commuters that starting “from Monday, November 6, 2023, transport fare will return to the pre-2nd August 2023 rate.”

Governor Babajide Sanwo-Olu had in July of that year reduced the transport fares for the state-owned buses and commercial buses by 25 per cent on all routes.

The moves were parts of efforts to cushion the impacts of the removal of fuel subsidy by the President Bola Tinubu government.

Mr Sanwo-Olu also said his administration was expanding its fleet of staff buses for workers in the Lagos State Public Service.

He said that the buses are ready and will be deployed through the office of the Head of Service of the state.

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