The Presidential Initiative on Compressed Natural Gas (PICNG) concluded its nationwide rollout of compressed natural gas (CNG) initiatives yesterday with the launch of Touchstone Global Investment Services (TGIS) CNG-powered tricycle assembly plant in Shagamu, Ogun State.
This event marks the start of a campaign to deploy 5,000 CNG-powered tricycles over the next three months.
Michael Oluwagbemi, Programme Director and Chief Executive of the Presidential CNG Initiative (P-CNGi), announced this plan during the commissioning of the Luojia tricycle assembly plant. These 5,000 tricycles are part of the initial units procured by the government under the Presidential CNG Initiative, aiming to provide affordable and eco-friendly transportation across Nigeria while addressing the impacts of fuel subsidy removal.
To support the initiative, the government has introduced several incentives, including value-added tax (VAT) exemptions and custom duty waivers for the tricycles imported into Nigeria. Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is offering CNG at a concessionary price, providing more than a 40% discount compared to current fuel prices, which allows users to save up to 70% compared to fuel-powered tricycles.
Oluwagbemi stated that the Federal Government has mandated all ministries, departments, and agencies (MDAs) to purchase only CNG-powered vehicles going forward. This decision is expected to promote the adoption of cleaner energy solutions nationwide.
Highlighting the economic benefits of the Luojia assembly plant, Oluwagbemi mentioned that it will create at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector will boost economic growth and increase tax revenue for the government.
Regarding the distribution and payment plan for beneficiaries, Oluwagbemi disclosed that the government is partnering with various tricycle organizations to identify potential beneficiaries under a loan scheme. A convenient payment plan is being developed for these individuals, and conversion kits will be available at discounted prices to enable people to convert their existing vehicles to CNG. The government is also working with stakeholders to increase the number and capacity of refilling plants nationwide.
In line with President Bola Tinubu’s promises, Oluwagbemi urged Nigerians to embrace CNG as the future for cleaner energy in Nigeria.
Gabriel Idowu, in charge of the assembly plant, stated that the plant can assemble 120 tricycles daily and over 30,000 annually as it ramps up capacity. Each unit of the tricycle will cost between N3 and N3.5 million, and Idowu assured the public of meeting the initial order of 5,000 units. The plant is also planning to enhance its capacity and will bring in expatriates from China to train the local team, while remaining open to collaborating with experienced individuals in the field.
