- Fed Govt targets less use of petrol to stem rising cost of living and boost economy
All new vehicles, generators or tricycles being procured by the government and its agencies must be powered by Compressed Natural Gas (CNG), solar or electric, the Federal Executive Council (FEC) decided yesterday.
It was one of the major decisions reached by the council before it adjourned its marathon proceedings till today after over four hours.
According to a source, the decision will take immediate effect with requests by the Nigeria Customs Service (NCS) and the Nigerian Shipper’s Council, an agency of the Ministry of Marine and Blue Economy.
The agencies sought approval to buy hundreds of operational vehicles.
The council, according to another source, approved the requests but said they must be CNG-powered vehicles.
Also, a request by the Federal Capital Territory to buy petrol generators was approved, but the council insisted they must be CNG-powered or solar-powered.
“The government expects agencies to begin to convert petrol or diesel vehicles or generators to CNG.
“The Tinubu administration which launched the Presidential Compressed Natural Gas Initiative (PCNGi) last October plans to roll out about 800 CNG buses, 4,000 CNG tricycles and 100 electric buses in the first phase,” it was noted.
In taking the decision yesterday, the government was signalling its readiness for an energy transition from fossil fuel to renewable energy.
The advantage of this decision, it was learnt, is to unlock new investments in renewable energy, solar panels and lithium batteries.
The government believes the policy will be climate-friendly and reduce inflation as it will slash costs by about 60 per cent.
Minister of Information and National Orientation, Mohammed Idris, said the FEC meeting would continue today.
He told reporters: “There is no briefing today (yesterday).
“A lot of far-reaching decisions are being taken and the conclusions will be made available tomorrow (today).
“Therefore, FEC will continue tomorrow,” he said.
The meeting was presided over by the President.
At the weekend, Finance Minister and Coordinating Minister of the Economy, Mr. Olawale Edun, said the introduction of CNG buses under the PCNGi will lead to a substantial reduction in transportation costs, ultimately helping to curb inflation.
He spoke during a visit to the JET Motor Company (JET) Assembly Plant in Lagos, where CNG buses are being assembled.
Edun highlighted the significant cost savings that CNG buses offer compared to their petrol-powered counterparts.
“Two critical aims will be achieved. Whereas it costs about N55,000 to fill a 15-20 seater bus with petrol, it will cost between N12-15,000 to fill a CNG bus of the same capacity.
“This is three times if not four times less.
“This is a huge savings that will help reduce transport costs and at the same time help reduce inflation,” he said.
The minister added that the PCNGi is all about affordable mass transit, and praised JET’s employment of local talent.
