As a new fuel price regime takes effect across the country, the Federal Government through the Presidential CNG Initiative (P-CNGi) yesterday, handed over 20 Compressed Natural Gas(CNG) buses to Iru Land Transport Company Limited.
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 transport cost in Lagos.
He explained that PCNGi is a component of the palliative intervention of President Bola Tinubu’s administration directed at providing succor to the masses occasioned by 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 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 transport 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,’’.
Oluwagbemi said 531 buses are 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.
Earlier, in his address, the Oniru of Iru Land, Oba Gbolahan Lawal, thanked the President Bola Tinubu, for finding Iru Land worth 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 companies headquarters, banks and other corporate institutions.
He assured the Government that the buses would be put to good use while return on investment is guaranteed.