In a bid to make mass transportation more affordable, President Bola Tinubu is projecting a cost of N250 per litre for Compressed Natural Gas (CNG), a more cost-efficient alternative to petrol, after stopping the payment of trillions of naira in fuel subsidies.
The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, said the move was part of Tinubu’s “very important” Presidential Compressed Natural Gas Initiative.
Ngelale further noted that the policy, chaired by the Chief of Staff, Femi Gbajabiamila, will roll out 11,500 new CNG fuel vehicles soon, focusing on mass transit systems across all states.
According to him, the targets for the initiative are lower-income earners to provide CNG-fuelled buses “and the like that will crash the cost from PMS-fuelled buses at about N620 per litre on average”.
“You’re now looking at about N250 per litre on average for CNG,” he told Channels Television.
“That’s going to have a massive impact on the ability of the everyday Nigerian going to work and back, going to market and back using mass transit across our states. That’s going to do that in the immediate term,” he added.
The presidential spokesman also drew attention to the immediate rollout of 55,000 new CNG conversion kits for existing PMS vehicles to further accelerate the conversion and transition from PMS to CNG.
“But I need to note that it is one thing to deal with the demand side of the CNG equation,” he said.
