The federal government estimates that Nigerians will need to pay between N300,000 and N600,000 to convert their gasoline-powered cars to compressed natural gas, or CNG.
The Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee’s Chief Executive Officer, Engineer Michael Oluwagbemi, made this revelation in an interview with this newspaper after the formal commissioning of CNG conversion centres and a demonstration of converted CNG vehicles in collaboration with the private sector at the Lagos headquarters of one of the partners, Femadec Group.
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Furthermore, he stated that the FG plans to open 10,000 workshops for the conversion of cars to CNG in the near future.
Oluwagbemi stated that, depending on the compatibility of the currency rate, the cost of conversion can vary from N300,000 to N600,000.
He also said that Nigeria wants to start producing and assembling CNG conversion kits so that more jobs can be created there.
“As a relief for Nigerians, the government is offering discounts on the immediate conversion cost and is considering flexible payment options as the committee continues to review the CNG initiative, offering more discounts and incentives,” he continued. “At the moment, we are importing conversion kits.”
The committee also disclosed that the project is anticipated to generate over 250,000 job opportunities for a variety of professionals and draw in over $2 billion in investments into the Nigerian economy.
Fola Akinola, the CEO of Femadec Limited, stated that he expected P-CNGi’s assistance to further the project in addition to bank funding arrangements made possible by the federal government.
