The Federal Government, through the Presidential CNG Initiative (P-CNGi), on Tuesday, handed over 20 Compressed Natural Gas (CNG) buses to Iru Land Transport Company Limited in Lagos State.
Speaking at the formal handover of the 20 CNG buses and the signing ceremony for Lagos Strategic CNG Conversion Partners, PCNGi Progamme Director, Mr. Micheal Oluwagbemi, said the launch of the first set of CNG buses was aimed at crashing transportation cost in Lagos.
He explained that PCNGi is a component of the palliative intervention of President Bola Tinubu administration directed at providing succour to the masses as a result of the transitive hardships of the fuel subsidy removal policy of the Federal Government.
Oluwagbemi added that sequel to the removal of petrol subsidy and the full deregulation of the petroleum products market, the price of petrol has increased significantly.
“As such, there is a need to consider alternative sources of fuel, primarily CNG and EV for vehicles. We are working towards reducing our dependence on fossil fuels, enhancing our energy independence and contributing to a more secure energy future in Nigeria,’’ he stated.
He said the Iru Kingdom corridor in Lagos was partnered because it had earlier established and operating an effective bus schemes, saying the location would also quickly help government in demonstrating to Nigerians the impact of CNG buses in lowering transportation cost.
He added that the PCNGi would also be working with Ibile Oil and Gas which is a Lagos State agency to fastrack the conversion of commuter buses through the 12 conversion centers that have been signed on to the PCNGi programme.
The programme director said the 20 CNG buses, like others, were procured by the Federal Ministry of Finance under the palliative programme through local manufacturers with repayment over a period of time through fares paid by commuters.
“We delivered 20 buses in Ibadan on Monday and today again, we are in Lagos. We will move over to other parts of the country as soon as the buses are assembled by the manufacturers here in Nigeria. Every part of the country will be touched,’’ he added.
Oluwagbemi said 531 buses were expected to be rolled out under the first phase of the PCNGi programme.
To further make the initiative more widely acceptable, he said one million commuter buses will be converted to CNG free of charge.
He further expressed excitement over the handover of the first set of CNG bosses, saying that Iruland has been operating several buses in the corridor between Eti-Osa local government and Victoria Island LCDA, all the way down to the Free Trade Zone to Epe.
He said, “So we believe that this corridor can allow us to quickly demonstrate to Nigerian people the impact of CNG bosses which is going to help lower the effect of petrol price and that’s why we’re here. We’re also here to work with our partner, the Ibile Oil and Gas, that we signed with traditional 12th Convention Centers that will now allow these transport entities like Iruland Transport Services, among many others, even NURTW, NARTO and other members to convert their existing petrol vehicles both to run on CNG and petrol again to help lower the fare.”
Oluwagbemi said the agency was providing the buses that were purchased by the Federal Ministry of Finance under the Palliative Programme and now they were becoming available because they were being assembled and manufactured in Nigeria.
“Today we are doing in Lagos, very soon we are going to do in FCT as well as Ilorin. These will be the first four cities and then after that, additional cities across Nigeria will begin to benefit,” he assured.
Earlier, in his address, the Oniru of Iru Land, Oba Gbolahan Lawal, thanked President Bola Tinubu, for finding Iru Land worthy of the partnership.
He said his kingdom generates over 40 per cent of the revenue in Lagos State as it plays host to several embassies, oil company headquarters, banks and other corporate institutions.
He assured the federal government that the buses would be put to good use while return on investment is guaranteed.