The federal government has disclosed that Nigerians will incur costs ranging from N300,000 to N600,000 for converting their petrol vehicles to Compressed Natural Gas (CNG).
The FG also said it is planning to establish 10,000 CNG vehicle conversion workshops in the near future.
The government said the aim is to attract foreign investors, create.employment opportunities and alleviate the economic impact caused by increase in petrol price.
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The Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, Engr. Michael Oluwagbemi, disclosed interview with Daily Trust after the formal commissioning of CNG conversion centers and a demonstration of converted CNG vehicles in partnership with Femadec Group at their Lagos headquarters.
Addressing the cost of conversion, Oluwagbemi explained that it may range between N300,000 and N600,000, depending on exchange rate compatibility.
He also mentioned that Nigeria aims to begin assembling and manufacturing CNG conversion kits, thereby creating further employment opportunities.
He added, “Currently, we are importing conversion kits, but under this initiative as a relief for Nigerians, the government is offering discounts on the immediate conversion cost and is considering flexible payment options as the committee continues to review the CNG initiative, offering more discounts and incentives.”
Additionally, the committee revealed that the initiative is expected to attract over $2 billion in investments into the Nigerian economy and create more than 250,000 employment opportunities for various professionals.