The Nigerian federal government has announced plans to deploy 5,000 Compressed Natural Gas (CNG)-powered tricycles over the next three months. This initiative is part of the Presidential CNG Initiative, aimed at promoting eco-friendly and affordable transportation across the country.
Michael Oluwagbemi, Programme Director and Chief Executive of the Presidential CNG Initiative (P-CNGi), disclosed this development on Thursday during the inauguration of the Luojia Tricycle Assembly plant in Ogun State.
Oluwagbemi highlighted several incentives introduced by the government, including Value Added Tax exemptions and customs duty waivers for CNG-powered tricycles and other vehicles entering Nigeria. He emphasized that the program is expected to create at least 60 direct jobs and 6,000 indirect jobs.
“The 5,000 tricycles are part of the initial units acquired under the Presidential CNG Initiative,” Oluwagbemi stated. “This initiative aims to enhance affordable and eco-friendly transportation across Nigeria and to mitigate the impact of fuel subsidy removal. It will generate at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector will boost economic growth and increase tax revenue for the government.”
The announcement coincided with the commissioning of a 5.2 million standard cubic feet per day (mmscfd) CNG plant in Lagos. Additionally, in April 2024, the Nigerian government set the price of Compressed Natural Gas at $1.57MMBtu.
In a related directive, President Tinubu has mandated all ministries, agencies, and parastatals to transition to CNG vehicles, underscoring the administration’s commitment to sustainable and cost-effective energy solutions.
