Fuel Subsidy Removal: President Tinubu Administration To Implement CNG Initiative To Ease Impact

In order to cushion the effects of fuel subsidy removal, the President Bola Tinubu-led administration is set to implement its CNG Initiative for Nigerians.

The initiative was launched last year in October after Tinubu announced the removal of fuel subsidy on May 29, causing food and fuel prices to skyrocket. The CNG Initiative will provide cheaper, safer and more climate-friendly energy to common people.

The implementation details were shared in a statement, signed by a special adviser on information and strategy to Tinubu, Bayo Onanuga on Sunday via X (formerly known as Twitter).

The committee overseeing the initiative is led by oil and gas expert Michael Oluwagbemi, who has made significant foundational reforms to pave the way for the future of CNG and Electric Vehicles as promised by the president.

According to the recent statement, the federal government will reduce the burden of the increase in pump price on Nigerians, providing N100 billion (part of the N500 billion palliative budget) to purchase 5500 CNG vehicles (buses and tricycles), 100 electric buses and over 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.

Regarding the committee overlooking the process, the statement shared that after the president approved essential tax and duty waivers in December, the Presidential CNG Initiative (PCNGI) is focused on collaborating with the private sector to fulfill the promise of the initiative.

The private sector has already invested over $50 million in building refueling stations, conversion centers and main stations. Furthermore, a safety policy document highlighting 80 standards and regulations that operators must strictly follow, has been created and approved. This ensures that CNG conversions are conducted safely and reliably.

The federal government announced last year that it will be converting 10 million Premium Motor Spirit vehicles to Compressed Natural Gas (CNG) in the period of three years.

Previously, the government has claimed that this initiative will help to create over 100,000 jobs in Nigeria and support gas-based industrialization and decarbonization in the country.