The Presidential CNG Initiative reports that plans have been finalized to introduce 5,0-00 tricycles powered by compressed natural gas over the course of the next three months, in tandem with the Federal Government’s ongoing efforts to implement CNG nationwide.
Michael Oluwagbemi, the P-CNGi Chief Executive and Programme Director, made this announcement on Thursday during the opening of the Luojia Tricycle Assembly factory in Ogun State. The nation’s widespread transition to CNG has been aided by the government’s ongoing mobilization of resources.
According to Oluwagbemi, the government has implemented a number of incentives, such as waivers of customs duties and exemptions from value-added tax for tricycles and other newly registered vehicles that run on compressed natural gas. He claimed that all Ministries, Departments, and Agencies have been ordered by the government to only buy CNG-powered cars going ahead.
The, move, according to programme director, will drive the adoption of cleaner energy solutions across the country. The Nigerian Midstream and Downstream Petroleum Regulatory Authority is providing CNG at a concessionary price, offering more than a 40 percent discount on the current price.
“The 5,000 tricycles form part of the initial units acquired by the government under the Presidential CNG Initiative, which aims to enhance affordable and eco-friendly transportation across Nigeria and to mitigate the impact of fuel subsidy removal,” Oluwagbemi said.
According to the P-CNGi chief executive, the new Luojia assembly plant will help create jobs and boost economic growth.
“It will generate at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector in implementing this initiative would boost economic growth and increase tax revenue for the government,” he said.
Oluwagbemi said the government was working with tricycle organisations to identify potential beneficiaries under a loan scheme. He said, “We are also developing a convenient payment plan for these individuals. Additionally, conversion kits will be made available at discounted prices to enable people to convert their existing vehicles to CNG. The government is engaging with various stakeholders to increase the number and capacity of these refilling plants nationwide,” he added. This is even as he urged Nigerians, in line with President Bola Tinubu’s promises, to embrace and adopt CNG as Nigeria’s future for cleaner energy.
Also commenting, the Managing Director and Chief Executive Officer, TGIS, Mr. Damilola Agboola, said, “the removal of fuel subsidy and the introduction of CNG by President Bola Ahmed Tinubu is a paradigm shift, and the paradigm shift presents an opportunity in which Luojia has come to Nigeria.”
Commenting on the potential of the facility, the Manager, Luojia assembly plant, Gabriel Idowu, said, “The plant has the capacity to assemble 120 tricycles daily and over 30,000 in a year as it ramps up its capacity with time.”
“We are also making plans to ramp up our capacity in terms of numbers. We have expatriates who will be coming in from China to train our team on the ground. We are also open to collaborating with individuals who have hands-on experience in the field.”
Meanwhile, CNG programme directo, Oluwagbemi noted that the programme would enhance job creation.
“Mr. President sees the CNG programme as an opportunity to create opportunities. We needed to catalyse job creation opportunity. When a job is created, the government can collect taxes. You cannot have tax revenue when businesses are lost. Businesses pay taxes on profits.Our main goal is to see that businesses flourish,” he said.
“The assembly plant has the capacity to employ 40 Nigerians, with the capacity to increase to 300. These are the people who will be rolling out 120 tricycles every day. While they are doing it, they will come up with new innovation on how they can do it better. In four to five years, they will come up with their own design, such that we will be launching the Nigerian version of the tricycle here.
A former Lagos State Commissioner for Transport, Dr. Kayode Opeifa, explained that the adoption of CNG tricycles meant cheaper transportation, saying, “It is energy security for Nigeria; apart from the fact that CNG is cheaper, the cost of transport will come down and inflation will come down.”
