The Nigerian government has announced that the days of purchasing Premium Motor Spirit (PMS) at prices ranging from N750 to N1,000 per liter are over.
In a significant move, the government will commission 30,000 Compressed Natural Gas (CNG) powered vehicles within the next 90 days.This announcement was made by Michael Oluwagbemi, the Project Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative, during the Park to Park CNG Mobilization program held at Ojota Park in Lagos on Saturday.
Oluwagbemi revealed that the initiative would require an investment of N36 billion to provide 30,000 CNG conversion kits, which will be distributed free of charge across the country within the specified period. Each conversion kit and its installation are valued at N1.2 million per vehicle, bringing the total expenditure to N36 billion over the next three months.He emphasized that the aim of this initiative is to promote the adoption of CNG as an alternative fuel for transportation in Nigeria.
“Today, we are here with conversion kits. We have purchased over 30,000 of these kits, primarily for distribution within the next 90 days,” Oluwagbemi stated.He further mentioned that the President has set a broader target beyond the initial 30,000 kits. “The goal is to distribute one million kits. We want to ensure that everyone can benefit from this government initiative,” he added.
Highlighting the impact of this initiative on fuel prices, Oluwagbemi declared, “The era of buying fuel at N750, N800, or N1,000 per liter is over. We will no longer do that. We will start using the gas beneath our feet so that we can purchase it at N230 per kilogram.”It is noteworthy that President Bola Tinubu had previously directed all Ministries, Departments, and Agencies to procure CNG-powered vehicles as a measure to alleviate the effects of the fuel subsidy removal.